Nonprofits Slow to Implement Enterprise Risk Management
Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM: Have a risk management governance structure; Follow a risk management framework; Continuously identify risk and the risk event universe; Create and manage a risk profile;. Read More.
SEC’s White Wants Companies’ Directors to be Gatekeepers
Speaking at the 20th Annual Stanford Directors’ College earlier this week, U.S. Securities and Commission (“SEC”) Chair Mary Jo White emphasized the significance of board of directors as the gatekeepers for shareholders of public companies. Relied upon by the SEC, White remarked that the role as gatekeepers allow directors to identify and prevent companies from violating federal securities laws, as well as respond to issues the moment they arise. In regard to directors as gatekeepers, White’s speech also noted: – The board of directors are a company’s most important gatekeepers, and it is by law their responsibility to watch over. Read More.