The Board oversees the company's processes to identify, report and address risks across the full spectrum of company operations. To that end, each of the Board's committees has been delegated responsibility for evaluating specific risk management processes and issues resulting therefrom. The Board receives regular reports from these committees and, where appropriate, directs that action be taken. The board also conducts direct oversight of certain risk management processes.
The following description of specific Board committee risk management oversight activities is not intended to be exhaustive in nature. The company's Internal Audit Department reports directly to the Audit Committee and the committee regularly reviews with management the company's financial reporting and accounting policies, internal controls over financial reporting, internal accounting controls, business risk assessment framework and principal business risks, and Code of Business Conduct compliance. The Finance Committee reviews the company's short and long-term business plans, certain proposed acquisitions or divestitures (including consideration of any substantial diversification from current business operations), any significant debt/equity issuances, and risk management programs from an insurance coverage perspective. The company's Assistant Vice President — Corporate Risk, Safety and Environmental Management also reports directly to the committee on a periodic basis. The Personnel & Compensation Committee reviews and approves the company's executive compensation strategies and programs related to annual, longer term and equity incentives and the business unit and corporate performance goals associated therewith, monitors management progress in compliance with stock ownership guidelines, considers and approves all employment-related agreements or termination arrangements with the company's Exchange Act Section 16 "executive officers" and periodically reviews policies related to management development. The Corporate Governance Committee reviews the company's succession plan for the CEO and other top senior management, assures annual evaluation of Board performance, establishes selection criteria for new directors, and manages the annual CEO evaluation process. The charters of each Committee are more fully described above beginning at page 8.
In addition to its consideration of matters brought to its attention by the Board's committees, the Board conducts direct oversight of various business risk management functions. At each regular meeting, the Board receives senior management reports about current operations as well as the identification of, and progress in addressing, principal business risks. The Board also receives direct reports from management regarding its Enterprise Risk Management program for identification and development of mitigation activities relative to longer-term business risks. In addition to the regular reports provided regarding current principal business risks, the Audit Committee will also periodically receive summary reports regarding the Enterprise Risk Management program. Annually, the Board reviews and approves the company's strategic plan objectives with periodic reviews thereafter about progress to that plan and any changes that are being considered. The Board's oversight role in this area has not affected its approach to the Board's leadership structure at least in part due to the level of direct communication that the Board and its committees experience with a variety of management employees that are involved in operations, finance, human resources, risk management and legal roles.