Question

In at least 150 words. Describe and discuss how a typical board of trustees can lower their risk profile.

Answer 1

Today balancing risk is the most challenging situation a company or organization can face. Financial risk leads to bankruptcies, rapid consolidations, government interventions, etc. In worst situations, industries suffer from the effects of global constrictions of the credit markets, volatile commodity prices and so on. A typical board of trustees can not involve themselves in day-to-day issues. instead of that, they have an organization's risk managers to combat difficult situations and handle them with the corporate strategy. risk awareness and risk-adjusted decision-making process run throughout the organization.

A proper risk management system should bring the attention of the board of trustees to the material risks so that they can be interrelated and solved. Training and tutorials given by the board of trustees can have a major impact on the employees, also lines of communication and information flow should be open from both the ends.

Analyzation of future risks should also be there to avoid it.