Eversheds Sutherland's Risk Governance Review went into the boardroom to ask approximately 400 board-level directors - What risks were top of mind for them? How do successful boards stay on top of these risks while remaining agile? And what can all boards do to adopt best-in-class governance practices?
Aleen Gulvanessian, Head of Boards and Governance, Eversheds Sutherland comments:
In this new age of corporate risk, our findings are that boards are looking at risk harder than ever, with many directors telling us that all board decisions are reviewed through the lens of risk. Well performing boards do not approach risk as a 'tick box exercise' and the most effective boards, when looking at strategy, are indirectly thinking about risk. Cyber risk has climbed to the top of most companies' worst fears but, despite the risks of climate change and artificial intelligence being very high on the news agenda, they remain low on board agendas.
We found that, whilst there is no single or infallible way to oversee risk, those who believe they have a visionary CEO were particularly comfortable with the lens through which the board addresses risk, for example when a company is reinventing its business model before the competition gets there first.
Ian Gray, Executive Partner, Clients, Eversheds Sutherland comments:
Against a backdrop of an ever more uncertain global geopolitical climate, boards are adapting their practises to consider risk in a far more strategic way. The agenda keeps changing with new, difficult risks such as digital disruption and automation, and climate change issues.