Because there is no single process appropriate for every board and every company, it is the joint responsibility of the board's risk leader and the CEO to involve the overall board in the ongoing processes of strategic planning and risk management, according to the Canadian Institute of Chartered Accountants' (CICA).
Those avenues must be constructive and appropriate to the circumstances of the company, CICA says.
The organization's "20 Questions Directors Should Ask About Risk" points out that boards of directors are responsible for approving the overall strategic direction of their company. As part of the planning process, boards must clearly understand their company's current business strategy, its critical success factors and the related business risks.
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