Who is primarily responsible for risk ownership in a commercial cannabis business?

In a commercial cannabis business, the board of directors holds primary responsibility for risk ownership. This group is tasked with overseeing the overall strategic direction and governance of the company, which includes understanding, managing, and mitigating potential risks that could impact the business's operations and compliance, particularly in the highly regulated cannabis industry.

The board's expertise and authority enable them to make informed decisions regarding risk management policies, resource allocation, and ensuring that the organization adheres to all legal and regulatory requirements. Their role is critical in setting the tone for risk culture within the organization, ensuring that all levels of management are aware of and actively engaged in managing risk.

External stakeholders, while they may influence risk considerations, do not bear the responsibility for risk ownership. Risk management consultants provide expertise and advice on managing risks but do not own the risks; they are external to the organization and work in partnership with the management team. Legal advisors assist in navigating compliance and regulatory risks, but their role is more about providing guidance rather than owning the risks associated with the business. Therefore, the board of directors' authority and accountability establish them as the primary owners of risk in a commercial cannabis operation.