One of the primary responsibilities of the board is to monitor firm strategy and risk.  Broadly speaking, strategy development and oversight consists of four dimensions:

• Definition of the corporate strategy
• Development of a business model that verifies how the strategy translates into shareholder value
• Identification of key indicators to measure corporate performance
• Identification and development of processes to mitigate risks to the strategy and business model

While the board is responsible for monitoring these activities, it is not actually responsible for developing them.  This is management’s responsibility.  Still, the board provides critical advice and oversight to ensure that these are done properly and in the best interest of the organization.  It also holds management accountable for performance.