Is your board risk-ready?
strategy+business|Summer 2020
Company directors face heightened pressure to assess and manage risk at the organizations they oversee — and in the boardroom itself.
Michele Wucker
Is your board risk-ready?

Your company’s board of directors is charged with reviewing all kinds of risks to the corporation. But how well prepared are its members to do so? How ready are directors to evaluate, communicate, and act on risks — and thus to better ensure that your company is doing a good job?

A great deal rides on the answers to these questions. Risk oversight of the boards themselves is what the Conference Board, a business membership and research organization, recently called the next frontier in corporate governance. “If boards really understand how to take risks well, their organizations will do better,” said David Koenig, founder of the Directors and Chief Risk Officers group (DCRO), an industry organization that formed after the 2008 financial crisis.

Responding to an overwhelming sense that boards didn’t accurately monitor risk in the time preceding the financial crisis, investors and directors themselves called for boards to up their game in overseeing organizational risk culture. Regulators let it be known that they would be looking over boards’ shoulders and taking them to task for lax risk oversight. Additionally, a growing number of index tools are tracking governance. In the decade since the crisis, boards have rushed to put risk monitoring mechanisms in place, boosting the enterprise risk management market to nearly US$4 billion in 2019, according to Transparency Market Research. But worries have lingered that many of these boards were asking for risk analyses solely as a box-ticking exercise. And a series of recent lawsuits has attempted to chastise directors for ignoring risks.

この記事は strategy+business の Summer 2020 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は strategy+business の Summer 2020 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

STRATEGY+BUSINESSのその他の記事すべて表示
Transforming information into insight
strategy+business

Transforming information into insight

Focus on six organizational elements to build a world-class data and insights capability.

time-read
8 分  |
Winter 2020
THE URGENT NEED FOR SOPHISTICATED LEADERSHIP
strategy+business

THE URGENT NEED FOR SOPHISTICATED LEADERSHIP

The pandemic has highlighted a series of paradoxes inherent to the work of leaders. What comes next will depend on how well leaders face up to them.

time-read
10+ 分  |
Winter 2020
The road to successful change is lined with trade-offs
strategy+business

The road to successful change is lined with trade-offs

Rather than trying to convince people your change initiative is the right one, invite them to talk openly about what it might take to implement it: the good, the bad, and the frustrating.

time-read
10+ 分  |
Winter 2020
Sustaining productivity virtually
strategy+business

Sustaining productivity virtually

Maintaining productivity levels among remote employees is an enduring challenge. Here are five ways to help businesses and employees thrive while people work at home.

time-read
7 分  |
Winter 2020
FORWARD TO normal
strategy+business

FORWARD TO normal

Entertainment and media companies are building business models that are resilient to the enduring changes in consumer behavior ushered in by COVID-19.

time-read
10+ 分  |
Winter 2020
How leaders can promote racial justice in the workplace
strategy+business

How leaders can promote racial justice in the workplace

Embrace four principles to turn today’s diversity, equity, and inclusion initiatives into sustained progress.

time-read
9 分  |
Winter 2020
CREATING THE OFFICE OF THE FUTURE
strategy+business

CREATING THE OFFICE OF THE FUTURE

In a remodeled world, it is vital for companies to reinvent ways of working.

time-read
10+ 分  |
Winter 2020
Consumer companies must take leaps, not steps
strategy+business

Consumer companies must take leaps, not steps

As shoppers show how quickly they can adapt to external shocks, retailers will need to radically reconfigure their business models.

time-read
7 分  |
Winter 2020
Businesses can fast-track innovation to help during a crisis
strategy+business

Businesses can fast-track innovation to help during a crisis

“Unrealistic” timelines can actually work. Here’s how.

time-read
5 分  |
Winter 2020
Agility and experience management work better together
strategy+business

Agility and experience management work better together

Many companies achieve early wins with separate transformational efforts, then stall. But if combined and enhanced using “return on experience,” or ROX, measures, these two programs can unlock each other’s potential.

time-read
7 分  |
Winter 2020