Technological disruption is a major concern of directors, seen as a risk to their businesses.
Many of these organisations will be impacted by major or disruptive change over the next couple of years. Looking at the landscape, it seems that few boards have the right skill set or experience to lead their organisation's digital future.
Boards should consider developing digital capability to meet their strategic needs.
But what does digital disruption mean to boardrooms? And what are the implications, challenges and the benefits to achieving that state of being truly digital?
Those organisations that have winning digital journeys will be able to quickly react to market changes - almost in real time. But to do this, they must let go of the old way of thinking and old way of doing business. They must embrace change.
The number one challenge facing organisations is that everybody in the boardroom needs to be digitally savvy but it seems very few in the boardroom are digitally savvy directors.
Cyber Security
Cyber security has been considered the exclusive domain of IT and security operations departments but boards have started changing their view of cyber security as being a core function of IT management, and are now demanding that C-suites treat cyber threats as an enterprise risk that should be addressed from a strategic, company-wide, and economic perspective.
Boards need to monitor cyber-risk, develop strategies for seeking assurance and oversee management.
Diversity of Thought
Corporate boards face no shortage of challenges-from economic uncertainty to strategic and competitive shifts to a dynamic set of risks. Investor attention to board performance and governance has also escalated, and many boards are holding themselves to higher standards.
Directors want to ensure that their boards contribute at the highest level, incorporating diverse perspectives, aligning with shareholder interests and setting a positive tone at the top for the organisation.
The proliferation of cyber-attacks-and their consequences for business in financial losses and reputational damage-increases the scope of risk oversight.
Amid the many challenges confronting corporations-and the growing expectations on corporate boards-directors must be thoughtful about defining the skill sets needed around the board table and diligent in recruiting the right directors, planning for CEO succession and evaluating their own performance. In this way, they will be best positioned to contribute at the high levels which they are demanding of themselves, and to which others are holding them accountable.
Health and Safety
Finally, Directors should never lose sight of their Health and Safety obligations under the Act and continue with the very good progress that has been made around the boards role here.
It is a fundamental part of an organisation's overall risk management function, which is a key responsibility of directors. Directors and other officers have a duty to exercise due diligence to ensure that the organisation complies with health and safety duties and obligations.
Wishing all my readers a happy, safe and healthy holiday season.
