Board Oversight of Disruptive Risks

Boards often focus on known risks that management has already identified. In this context, in an online survey of directors by the National Association of Corporate Directors (NACD), nearly half of respondents said this tendency is a major impediment to the board’s ability to oversee disruptive risks. Disruptive risks include „risks that, whether internally- or externally-driven, could have a significant economic, operational, and/or reputational impact-and to help them be better prepared to respond when they occur.“ NACD’s article „Adaptive Governance: Board Oversight of Disruptive Risks“ focuses on these types of risks. Do you want to learn more about disruptive risks and how to deal with them? You can access the report here.