Question

Which of the following are typically governance responsibilities of Board of Directors?

Select one:
a. Delegating risk tolerance levels to risk managers.
b. Monitoring day-to-day performance of specific risk management activities.
c. Establisng a governance committee of the board.
d. Ensuring that sufficient information is gathered to support reporitng to the board.
e. All of those listed.

Answer 1

The governance responsibilities of the Board of Directors include establishing governance committees and ensuring information accuracy for reporting, making option e, which refers to all listed responsibilities, the correct answer.

Step-by-step explanation:

The governance responsibilities of the Board of Directors typically include setting the strategic direction of a company, establishing policies, and ensuring that the company is run in the interests of the shareholders. This includes activities such as establishing a governance committee of the board (option c) and ensuring that sufficient information is gathered to support reporting to the board (option d). While they do oversee the risk management processes, they are not generally involved in day-to-day performance monitoring of specific risk management activities, which is often delegated to risk managers. Thus, the correct answer is option e, as it includes both the responsibility to establish committees such as governance, as well as ensuring proper information flow for oversight purposes.