Is Your Audit Committee at Risk

Prayer up as we read the chilling news of the gunman storming a building — home to Blackstone, the N.F.L., KPMG and Rudin Management — before he killed himself and others, including a Blackstone executive, Wesley LePatner.

In this season, we huddle in the Audit Committee with sports, finance, sports team ownership, investors and N.F.L. executives as these subject matter experts explore enterprise risk management and unveil some of the most valuable insights into Boardswell’s Summit that aren’t shared in press releases or on LinkedIn.

When your head hits the pillow at night, what do you worry about?

It has been said that one advantage in having enterprise risk management that fully quantifies risk impacts is that the baseline company value captures the full projection of future revenues, expenses, and other components of distributable cash flow, and risk is measured as shocks to the baseline. A shooting in midtown would be accounted for since this ERM approach has in its baseline company value the future revenues that these managers were to generate. As a result, the quantification of the risk, which is the shock to the baseline, would fully reflect all lost revenues. Is that appropriate?

Or is the next frontier of risk, development of emotional intelligence and psychological resilience across the executive team?

From an accounting perspective, is ERM treated as an expanded SOX exercise resulting in a laundry list of risk mitigation and risk controls?

Watch the recap of Boardswell Talks on this Traction Tuesday (already in progress).

Tracy Harris, Director, Bally’s Corporation (NYSE: BALY)
Jocelyn Moore, Owner, Ft. Lauderdale United FC; Former EVP, Communications and Public Affairs, N.F.L.Director, DraftKings (NASDAQ: DKNG)
Shannon Nash, Director, SoFi Bank (NASDAQ: SOFI)
Sabrina Hannam, Chairman of the Board and CEO, Boardswell