Board Oversight

The supervisory role played by an organization's board of directors in monitoring management's execution of strategy within defined risk appetite boundaries. Effective board oversight involves setting risk appetite, approving risk policies, ensuring appropriate risk management frameworks, challenging management on strategic decisions, and monitoring risk exposure against defined limits. The board should regularly review risk reports, assess the effectiveness of risk management processes, and ensure alignment between risk-taking and strategic objectives. In RBPM, board oversight is a critical governance function.