When considering a board-level risk committee, the board first must clarify its own oversight responsibility as well as the oversight responsibilities of its standing committees. This article from Directors and Boards discusses several considerations to help boards put these "risk committee" discussions into context and determine what makes most sense given an organization's specific risks, challenges, and oversight objectives.

The laser-focus on risk - how a company manages it, and how the board oversees it - has sparked rigorous discussions in many boardrooms and in Washington, D.C. about the pros and cons of establishing board-level risk committees.

It's certainly a healthy debate to have, but context is critical. The role of a risk committee cannot be considered in isolation; rather, it should be viewed in the context of the broader board/committee structure for overseeing the company's risk management system.