Effective risk management is a key component of any organisation which is truly doing well. The board is responsible for oversight of effective risk management and its responsibility is two-fold. First, it must oversee, (i) the mission critical steps involved in the management of risks (i.e. identifying the risk, assessing risks, mitigating risks, and monitoring risks, and (ii) it must also oversee the leadership of senior managers with regard to the management of risks. So, to be truly effective, the integrity with which management and directors themselves lead risk management is just as important as the steps aken to actively manage those risks. The board’s duty is not effectively discharged until oversight is given to both of these elements.