The Risks That Keep Boards Awake at Night

Written By A.C. Coppola

Every organisation faces hundreds of risks.

Boards worry about only a few.

The risks that truly concern directors share three characteristics:

  • They are difficult to predict.

  • They could materially damage the organisation.

  • They threaten strategic objectives.

Today these risks commonly include:

  • Cybersecurity and ransomware.

  • Artificial intelligence and data governance.

  • Regulatory change.

  • Talent and leadership succession.

  • Geopolitical instability.

  • Reputational damage.

  • Major transformation programmes.

The challenge is not identifying risks.

The challenge is understanding which risks matter most.

Boards are paid to focus attention.

Risk management is, at its core, the discipline of deciding where that attention belongs.

The Risks That Keep Boards Awake at Night

A.C. Coppola

A. C. Coppola has spent more than 20 years working in governance, audit and risk across over 20 countries. He founded Phronesium with a simple belief: knowledge is widely available, but sound judgement is harder to find. Better decisions begin with clearer thinking.

https://Phronesium.com
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