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Corporate board members are realizing the growing risks confronting companies in today’s volatile world. Boards face unprecedented challenges such as technological disruption, climate change, geopolitical shifts, and societal expectations. More than 60% of directors report that their board is enhancing risk management, according to a survey of 444 directors and executives around the world, and dozens of roundtables that brought together more than 130 directors in North America, Europe, Southeast Asia, Africa, and South America. The survey was carried out by BCG, the INSEAD Corporate Governance Centre, and executive search firm Heidrick & Struggles.
Yet risk management is often treated as a reactive process, focusing mainly on how current trends affect the business today. In many organizations, enterprise risk management operates in isolation, generating impressive reports but failing to influence decision-making. Recognizing the changes happening today is one challenge; it’s an entirely different task to look ahead and envision how major trends might develop, identify emerging ones, assess their potential impact on the business, and chart a course to turn those shifts into a competitive edge.
The survey results show that about half of directors lack confidence in their company’s ability to effectively anticipate new…
