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Member, Beacon International Group, Ltd.
NEW YORK—The Risk & Insurance Management Society Inc. called Wednesday for mandatory risk committees for certain publicly traded companies.
The call came in a letter sent by New York-based RIMS to members of the House Financial Services Committee. In the letter, RIMS President Joe Restoule urged committee members to “require all publicly traded companies of a certain size to establish separate board-level ‘risk committees’ to evaluate the enterprise risk of a corporation.
“The composition of the committee should include at least one risk management expert,” wrote Mr. Restoule, who also is leader of risk management for NOVA Chemicals Corp. in Calgary, Canada. “This proposal would permit shareholders to evaluate a corporation’s risk practices but allow the organization to select which risk management standards would be implemented as long as they are based on generally accepted national or international standards. This requirement for corporations to establish risk committees should be applied to all corporations of a certain size, not just financial institutions.”
The letter also expressed support for federal charters for insurers and producers and establishing a national insurance information office within the Treasury Department. Both have been longstanding legislative goals for RIMS.