Risk management is presents in a dynamic world and requires the changing demands of business to address it properly (Wagner & Rieves, 2009). There are five questions that board meeting should discuss to help serve as a useful guidepost..Does the risk profile reflect on risks that the organization currently face? The board must ask questions if the risks presented before them for discussion and review adequately represent the risks that the organization faces (Brickell & Paul, 2005). Questions should ask if there are risks that the board can solve, or the executive can manage. The questions point out to the management team on risks that are significant to the achievement of objectives and goals of the organization (Wagner & Rieves, 2009). The board must discuss how to manage the risk, which then lead to the next question.
Is the management capable of improving to manage the risks effectively in an environment that constantly changes? The question points out the need to have a diverse approach in addressing every risk, because of the dynamic nature of the world a similar approach may not address the risk adequately. Do the directors and executive management share a similar view on risk? The directors and other executive management level should have same understanding of the desired risk levels (Brickell & Paul, 2005). Furthermore, they must determine the possibility of achieving each level every day within the business.
Does the culture of risk encourage right organizational behaviors? Organizational culture must support and encourage responsible risk behavior (Wagner & Rieves, 2009). In some cases, if the executive management behaves in a way indicating they know the risk better than anybody else, then achieving organizational goals and objectives may pose a challenge.