First published in the Winter 2020 issue of Ethical Boardroom.
In today’s interconnected and ever-changing world, the only thing companies can count on is uncertainty.
Employees are demanding engagement from management on economic, cultural and political matters. Consumers are buying in line with their beliefs while criticizing big business on social media. Policymakers are making head-snapping decisions that cause stock market whiplash. Community activists are turning to local governments to restrict corporate growth. Shareholders are pressuring companies on environmental, social and governance issues far outside their traditional purview of profit-making.
In this chaos, independent board directors are particularly well placed to help CEOs make sense of the unpredictable global landscape and navigate the space in which their companies compete. Indeed, because a lot of uncertainty can mean a lot of risk, the risk management part of a director’s overall job – providing strategic guidance with an eye firmly on shareholder returns – has taken on heightened importance in these times. And, now more than ever, directors need to be even more of a resource for CEOs and their management teams as companies face new challenges and seek to understand the real risk and its potential consequences within the unknown… Continue Reading