While I still disagree in some areas, I applaud Jim DeLoach for his latest piece for the (US) National Association of Corporate Directors, Revamping Risk in the Digital Age.
Please read the entire piece, but here are points I especially like, with my highlights:
- It has always been understood that one must take risks to grow. And typically, the more risk one takes, the higher the potential return. Conversely, a risk-averse mindset leads to a lower return. Given the pace of change in the digital age, the reality is such that it’s not just a matter of taking risk to grow or generate greater returns—it’s also a matter of survival. That’s why organizations might have to undertake more risk than they may be accustomed to taking if they are to survive.
- In the digital age, the board has an important role to play in strengthening and nurturing the risk culture that facilitates the initiative, creativity, and digital thinking so critical to success.
- Over three decades, best-of-class [in Jim’s opinion] risk management has evolved from a fragmented, siloed model focused narrowly on myriad risks, to an enterprise-wide approach focused on the most critical business risks and integrated with strategy-setting and performance management.
- In the digital age, risk management cannot only be about avoiding bad bets. It…
