Is your board adequately addressing emerging risks?
Sixty percent (60%) of boards have indicated that emerging risks are insufficiently covered in risk management frameworks, according to the EY Global Board Risk Survey (2023). Further, 61% of board members cite misalignment with other board members on the material risks expected to significantly impact the organization in the next year. Does your board fall into this bucket?
It’s important that boards devote enough time and attention to top risks. Failing to do so could lead to boards focusing on the wrong thing and problems or opportunities being detected too late to respond appropriately.
This year, the top three risks for boards include geopolitical events, supply chain disruption and cyber-attacks/data breaches. Boards who want to bounce back from adversity quickly must be sure to focus on developing resilience overall, and not just identifying and responding to each risk individually.