Improving Board Performance in Disruptive Times
The 2020s are well on their way to earning the ominous label of a troubling, disruptive decade, but there remain viable opportunities amid the challenges. What is the board’s role in preparing the organisation for “show-stopping” and potentially existential risks?
The Story: A global board survey conducted by McKinsey of approximately 1,500 corporate directors found that directors “are not pleased with their performance on risk management.” Only 7% of the respondents believe that over the past year their boards were “most effective” — the highest rating — at overseeing risk management, and only 40% report that their organisations are prepared for the next major crisis.
The questions: Why these responses and what do they imply for directors’ reputations and the board’s culture and processes for understanding risk and communicating with key constituencies and internal stakeholders about risk. What can boards do to increase their confidence in the organisation’s risk management?
(Board Perspectives — Issue 154)