The Board of Directors is ultimately responsible for risk oversight. Effective risk governance simply requires clear accountability, authority, and methods of communication; it is not necessary to have multiple levels. The point of risk governance is to consider the methods in which risk-taking is permitted, optimized, and monitored; it is not necessarily to minimize the amount of risk taken. The real point of risk governance is to increase the value of the organization from the perspective of the shareholders and/or stakeholders.
