13 Questions on Risk Management
It is thus within every shareholder's interest (let alone right) to question the company's board and senior management on how the firm manages and controls risk, since good risk management must start from the very top. But what questions can a shareholder justifiably ask you, a director or senior manager? And what reasonable answers can you give?
There follows a list of questions which shareholders should ask their board and senior management. The answers contain risk management and control guidelines which shareholders could use as a template to evaluate whether their company has a firm grip on risk control. The questions are straightforward. The answers may also seem obvious, but then the best risk control systems are based on common sense. However, as experience has shown, common sense does not always prevail among the higher ranks of management in even the most prestigious institutions.