Oversight of risk management remains a crucial responsibility for all boards of directors. Wachtell, Lipton, Rosen and Katzs , summarizes the boards risk oversight function and provides recommendations for boards to improve their oversight of risk.
The authors note that cybersecurity and boards oversight of cyber risk is becoming an area of focus for the SEC and investors, in light of high profile data breaches and other cybersecurity incidents. Nevertheless, many boards have not adopted procedures to oversee managements efforts to address cyber risks.
The authors offer practical suggestions to improve board risk oversight generally, including periodic reviews with management of the companys risk profile, risk tolerance, and policies and procedures to assess and manage risks.
is a memorandum by Martin Lipton, Daniel A. Neff, Andrew R. Brownstein, Steven A. Rosenblum, Adam O. Emmerich, Sebastian L. Fain and David J. Cohen of Wachtell, Lipton, Rosen & Katz.