In today’s volatile business environment, corporate boards must navigate an increasingly complex risk landscape while maintaining strategic oversight. That challenge anchored a recent conversation hosted by the M.S. in Enterprise Risk Management (ERM) program featuring Ron Cathcart, vice chair of the Natixis U.S. Risk Committee and former U.S. representative to the Policy Development Group of the Basel Committee on Banking Supervision.
The event, held on February 3, 2026, brought together students, faculty, and industry professionals for an in-depth discussion moderated by Melody Feinberg, ERM part-time lecturer and independent board member. Drawing on his extensive career, including serving as head of Enterprise Risk Supervision at the Federal Reserve Bank of New York and chief risk officer at Washington Mutual during the 2008 financial crisis, Cathcart offered practical insights into how boards can elevate their risk oversight. As Cathcart noted, his experience at Washington Mutual gave him a front-row seat to how crises actually play out in the boardroom, shaping his understanding of what effective board oversight requires.
Oversight vs. Execution: Clarifying the Board’s Role
Feinberg opened the conversation by establishing a critical distinction: Boards are responsible for oversight, not execution. Boards are the highest governing body, she explained, like a navigator on a ship who sets the destination and ensures sound direction rather than steers the vessel.
Cathcart reinforced that boundary. “The board is there to oversee, to create strategic direction, to coach management, but the execution of the strategy is entirely with management,” he said. “The board doesn't execute on an ongoing basis anything. One of the terms that you'll often hear is noses in, fingers out, which means that you should understand what's going on with management, but keep your hands out of it.”
While many board members have built careers as operators, he acknowledged, “They really want to get in there and get their hands on it, because I know how to do that, I've done it before. But the reality is that's not the role.”This delineation shapes how boards engage with management on strategic decisions. Major choices—such as acquisitions or new product lines—require collaboration, with boards ultimately approving strategy while management handles implementation.
Staying Informed: The Work Between Board Meetings
When Feinberg asked how board members stay current despite meeting only a few times per year, Cathcart emphasized that effective board service extends far beyond quarterly meetings. He described himself as a voracious consumer of information who monitors news, podcasts, and industry publications daily, attends conferences, and networks with fellow directors.
What’s most critical, Cathcart stressed, is meeting personally with management between board meetings to understand what’s on their minds and develop rapport outside formal settings. Board service, he noted, is “heavy lifting with big responsibility—not something where you just show up six times a year.”
Risk Appetite as Strategic Framework
Central to the discussion was risk appetite: the level and types of risk an organization is willing to accept in pursuit of its objectives. Feinberg stressed that defining risk appetite is fundamentally a board responsibility and a strategic choice, not merely a control exercise.
“It is strategy,” Feinberg explained. “When the board says, ‘Yes, we want this type of risk. We want you to venture here. We don’t want you to venture here,’ that is all a choice. And that is the board’s responsibility, ultimately—to hand over that choice.”
Cathcart illustrated this concept with reverse mortgages—a potentially profitable business carrying substantial reputational, compliance, and ethical risks. Finance might present a business plan showing strong returns, he noted, but understanding the full range of risks is how organizations succeed.
Feinberg added another example: CVS’s decision to stop selling cigarettes—a strategic choice involving significant revenue trade-offs but reflecting deeper considerations around reputation and brand positioning.
Preparing the Next Generation of Risk Leaders
Feinberg turned the conversation toward students and early-career professionals, asking what junior employees can do to build boardlike skills before reaching the boardroom.
Cathcart’s advice centered on cultivating a broad organizational perspective. “Think about the division you’re in, the business you’re part of, the overall enterprise,” he said. “Understand what the goals of the organization are, its culture, and how it intends to grow.”
He encouraged students to seek senior mentors who can provide insight into executive decision-making. “I would say to senior people, ‘Do you mind if I check in with you every couple of months to get your sense of what you see happening?’” Cathcart said. “People respond really well to that because it’s a huge compliment.”
He also advocated for cross-functional assignments that broaden perspective. Finally, Cathcart emphasized continuous learning—a theme throughout his career spanning banking, regulation, consulting, and governance. Reflecting on his trajectory, he noted the importance of keeping intellectual curiosity alive and being willing to take risks and seize opportunities.
Feinberg closed by reinforcing that strategic thinking isn’t reserved for senior leaders. It’s never too early to develop boardlike skills, she noted, and teaching others is one of the best ways to solidify learning.
About the Program
The Master of Professional Studies in Insurance Management is for career professionals who want to accelerate their advancement to leadership positions or broaden their expertise in the industry. It accommodates both professionals already working in insurance and those looking to make a career change. The program is part-time, online, and instruction is asynchronous to accommodate working professionals.
Applications are reviewed and candidates are accepted on a rolling basis for the M.P.S. in Insurance Management program. Learn more about the program here.
