The world of business today, financial risk is one of the key concerns of business enterprises such as market risk, credit risk, and operational risk because the risk might be occurred by the unexpected that can cause of negative outcome of business (Eshna, n.d.). Generally, the risk ownership at the board of director level has an important role to control the risk that might be happened the organisation by monitoring and evaluating of the risk within the firm in order to get the highest efficiency of the risk management in the organisation. Therefore, this essay will be shown that the board of director level has a significant duty to control the financial risk within the firm.
In terms of risk management system, there is a chief risk officer (CRO), who takes responsibility on enterprise risk management and reporting the risk analysis to the chief executive officer (CEO) in order to setting the policy of risk activities in the organisation (Lam, 2003). Moreover, the CRO has important roles in term of risk management due to the CRO is the leadership of vision to manage the enterprise risk by integrate of all risk management aspects within the organization in order to develop the risk policies, the analysis, and also the systems by supported the program of risk management of the organization (Lam, 2003). It can be seen that the CRO has an important role in monitoring the system and to control the enterprise risk management in order to gain the highest benefits to the firm.