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

Antonio Carmine Coppola is an international governance, audit, and risk expert with more than 20 years of experience across 20+ countries. Founder of Phronesium, he believes that knowledge is common, judgement is rare, and better decisions begin with better thinking.

Previous

Why Most Audit Reports Fail