Directors facing a “disruptive decade” need risk reporting that provides strategic intelligence rather than comprehensive data. Protiviti’s Jim DeLoach argues for risk communication that feeds off management reporting, emphasizes critical enterprise and emerging risks and enables meaningful dialogue about strategic assumptions and market dynamics.
Twice before, I have written on these pages about improving board risk reporting. In my previous writing, I shared some wisdom offered by Rick Steinberg, a friend of mine and well-respected member of the governance community. While I initially proposed six principles in 2016, Rick’s thoughtful additions of four more principles — addressing how boards and management should evaluate risk communication quality — helped create the more comprehensive framework I discussed in my most recent missive on the subject, which was published in 2017.
From where I sit, eight years is a long time in a rapidly changing world. In today’s optics, companies face constant disruption and the emergence of unexpected challenges. Leaders must navigate “unknown unknowns” as the lifespans of corporate strategies and business models shorten. Innovations in workflows, products and services continuously reshape how people live, work and play. Consumer preferences and…
