Risk Oversight and Risk Governance of Firms

Risk is threats for firms’ future development, so effective risk oversight is important for firms. Board of directors plays a significant role in the risk oversight process, but they are facing serious challenges and pressures in effective risk oversight. Therefore, risk governance is becoming more and more important for firms to effectively reduce their risks, develop a robust internal control system and then become profitable. In addition, risk governance is not independent itself, and its improvements also promote the further development of corporate governance and risk management, which are also important for the operation of firms. But firms’ risk governance implementation also has some challenges with the development of the society; thus, this paper is aimed at providing recommendations for the better development of the risk governance.