Board Perspective: Risk Oversight

Protiviti Board Perspectives
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Issue
131
09/2020
Churchill said he strived “to foretell what is going to happen tomorrow, next week, next month, and next year — and to have the ability afterwards to explain why it didn’t happen.” His acknowledgment of the futility in predicting the future is especially apropos today as markets transition to the eventual “new normal.” The business model is akin to a finely tuned machine requiring the coordination of multiple components to deliver value to customers according to a company’s brand promise. Business models vary by industry. For example: A manufacturer’s model combines a robust supply chain, an...
Issue
130
08/2020
A year ago, the Business Roundtable (BRT) released its “Purpose of a Corporation”[1] statement expressing a “fundamental commitment” to deliver value to all company stakeholders. Today, as the economy emerges from a terrible pandemic, does this statement matter to directors? The BRT’s statement in which 181 chief executives of prominent American companies committed to deliver value to their respective stakeholders (consisting of customers, employees, suppliers, communities and shareholders) has drawn varying reactions in the marketplace. In our view, the statement is an acknowledgment from...
Issue
129
07/2020
As global markets continue to address the COVID-19 pandemic, practical digital know-how is becoming more than a desirable attribute that directors aspire to embrace. A compelling study asserts that companies could be falling behind if they lack a digitally savvy board. Boards and business leaders are well aware of the digital revolution taking place across the globe and how digital leaders were able to navigate the choppy COVID-19 seas much more effectively than their less resilient peers. But what’s being done to advance their organisations’ digital capabilities? Specifically, does the board...
Issue
128
06/2020
As companies emerge from lockdowns marked by unprecedented change and begin to look forward, boards should continue to ask the right questions. As countries across the globe emerge from lockdown, discussions tailored to the evolving marketplace and issues around employee health and safety are needed in the boardroom. While the specifics will vary depending on the circumstances, we pose 10 questions meriting consideration for most industries during the COVID-19 recovery. (1) What does our business look like going forward and what is our strategy for aligning with market realities? Companies...
Issue
127
04/2020
The discussion below is a more complete coverage, including examples, of the topic addressed in Issue 127 of Board Perspectives: Risk Oversight and on NACD/BoardTalk. The global COVID-19 pandemic is a different experience from other catastrophic events like the September 11, 2001 attacks and the 2007-2008 global financial crisis. It is spawning new thinking in all quarters, especially in boardrooms. It’s been several weeks since coronavirus disease 2019 (COVID-19) truly captured everyone’s attention across the globe. With new developments almost hourly, it feels so much longer. While it is...
Issue
127
04/2020
The global COVID-19 pandemic is a different experience from other catastrophic events like the September 11, 2001 attacks and the 2007-2008 global financial crisis. It is spawning new thinking in all quarters, especially in boardrooms. It’s been several weeks since coronavirus disease 2019 (COVID-19) truly captured everyone’s attention across the globe. But with new developments almost hourly, it feels so much longer as the world observes the awful suffering and is inspired by the hundreds of thousands of individuals (including volunteers) in research, healthcare and first-response positions...
Issue
126
03/2020
In a crisis, clear thinking is needed in the boardroom. The unprecedented nature of the COVID-19 pandemic has set in motion one of the most abrupt disruptions in decades, leaving organisations reeling with uncertainty as fear spreads faster than the virus itself. The Coronavirus Disease 2019 (COVID-19) crisis could very well present the ultimate test of resiliency — for leading companies in every industry, including their boards. How well companies pivot in this environment and in the aftermath could have a lasting effect on their reputations and brands. More importantly, as organisations...
Issue
126
03/2020
The discussion below is a more complete coverage, including examples, of the topic addressed in Issue 126 of Board Perspectives: Risk Oversight and on NACD/BoardTalk. In a crisis, clear thinking is needed in the boardroom. The unprecedented nature of the COVID-19 pandemic has set in motion one of the most abrupt disruptions in decades, leaving organisations reeling with uncertainty as fear spreads faster than the virus itself. The Coronavirus Disease 2019 (COVID-19) crisis could very well represent the ultimate test of resiliency — for leading companies in every industry, including their...
03/2020
Below is the full summary, including key takeaways, of a discussion among a group of active directors facilitated by Protiviti during a recent National Association of Corporate Directors (NACD) event. An abbreviated summary of this roundtable is provided in Issue 125 of Board Perspectives: Risk Oversight and on NACD/BoardTalk blog. Every organisation, in the face of adverse, disruptive change in its operating systems, must be prepared to continue the delivery of its critical business services. The board has a vital role to play in overseeing this preparedness. Large-scale technology outages...
Issue
125
03/2020
Every organisation, in the face of adverse, disruptive change in its operating systems, must be prepared to continue the delivery of its critical business services. The board has a vital role to play in overseeing this preparedness. To gain fresh perspectives on board oversight of operational resiliency, Protiviti met with a group of active directors during a roundtable at a December 2019 National Association of Corporate Directors (NACD) event to discuss their experiences. Below are some takeaways. Every company is a technology company. Most companies rely heavily on a business model powered...