CG news update vol.11

Directors Discuss the Implications of AI for the Workforce
November 19, 2019 By Jesse Rhodes

Ready or not, artificial intelligence (AI) is already permeating the business world, posing a host of opportunities and—if AI isn’t approached intelligently—an accompanying host of risks. AI’s lure may be in its capacity to collect and learn from data, which is indeed revolutionary, but AI’s implications extend well beyond having the right data at the right time and deploying it well.

NACD, in partnership with Grant Thornton, hosted an October 29 roundtable discussion in Naples, Florida for directors wanting to better understand the implications of this rapidly expanding technology and the board’s role overseeing how it is implemented and managed within an organization. Over the next two weeks, the NACD BoardTalk blog will feature highlights from this discussion. (Read more click)

Alignment on Risk Management Is Dangerously Askew
November 15, 2019 By Richard F. Chambers

Boards are under increasing pressure from investors, regulators, and the general public to adapt to and better manage the factors that influence how organizations are created, grow, and succeed—and to do so with transparency and accountability. This requires unparalleled collaboration and harmony of purpose among those charged with risk management.

But findings from a new Institute of Internal Auditors (IIA) report paint a troubling picture that is anything but harmonious. Worse yet, the report’s key findings suggest that boards generally have an overly optimistic—and potentially dangerously skewed—view of how risks are managed.(Read more click)

Revamping Risk Culture In the Digital Age
November 7, 2019 By Jim DeLoach

How many directors can name a chief risk officer who has advised them and their executive team that their organization is too risk-averse? In the digital age, not enough.

It has always been understood that one must take risks to grow. And typically, the more risk one takes, the higher the potential return. Conversely, a risk-averse mindset leads to a lower return. Given the pace of change in the digital age, the reality is such that it’s not just a matter of taking risk to grow or generate greater returns—it’s also a matter of survival. That’s why organizations might have to undertake more risk than they may be accustomed to taking if they are to survive.(Read more click)

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