Question

Describe and discuss how a typical board of trustees can lower their risk profile.

Answer 1

The board of trustees plays a vital role in minimizing the risk profiles of the company and its business. They mainly prevent the financial crisis that can occur at any time.

Trustees can utilize the board governance management software for assessing the probable risks. However, risks can present unique opportunities if the directors and trustees are aware of it and verify their operational, strategic, political, and reputational aspects thoroughly.

Trustees can plan to establish a board-level risk committee to assess the upcoming risks in the market. It can be political or financial or organizational risks that bother the company’s operations. The risk management committee communicates with the risk management profile to understand the depth of the problems.  

Trustees can make a diligent board, which is a secured board portal where committees and boards can collaborate to defend the risks. It is essential to communicate effectively with every department, which can be achieved through a diligent board. Another critical aspect that trustees follow to minimize the risk profile is that they maintain the organizational objectives.

In the end, the board of trustees discusses risk management planning and strategies and implements the most effective plan to overcome the risks.