Publications

All organizations must learn to embrace risk-taking in order to thrive. We must know how to respond to events we did not anticipate. And we must do our work in ways that help us reach our corporate goals most effectively. The example set by the board and C-suite around risk leads to a positive change in mindset that cascades throughout the organization. Schedule a consultation to discuss your specific goals.

Hidden attitudes towards risk among board members and executives can be a primary driver of that success or an impediment. Because the future is more difficult to predict than ever, we need to ensure that our individual attitudes toward risk foster a dynamic and adaptive organization.  This article will help you understand how critical it is to understand both individual risk personalities and whether you have the right mix of these attitudes among board members and executives. 

Boards of directors can transform the environment wherein risk is taken well – what we call risk governance – to make the most effective use of precious resources. By thoughtfully approaching risk-taking and using it as a positive,  strategic tool for growth, directors can collectively and individually adopt the positive governance of risk-taking – something that will cascade throughout the company at every level.

 Boards are expected to govern an organization's embrace or rejection of AI. To meet those expectations, board members must quickly understand how their organizations are using AI, what vulnerabilities it brings, how it can massively scale the organization's upside potential, where the opportunity to innovate lies, and what level of unexpected outcomes they are willing (or not willing) to accept.
 

In this article, we highlight key takeaways from experts across the risk governance, ethics, and innovation realm to give directors a sense of where to start, what questions to ask, and how boards around the world govern AI risk-taking best.

When many call to mind the profile of a typical board director, they think of executives with deep operational or finance experience – often a former CEO or other C-level executive with specific industry expertise. But, in an age when the business environment is changing at a lightning pace and ongoing geopolitical shifts will change the strategic environment in ways most of us have never experienced, there is a growing need for diverse thinking and geopolitical intelligence in the boardroom, and not just that which you hire for a semi-annual or annual briefing.   We highlight five people with experience in intelligence, law enforcement, and strategic business planning, looking at the diverse and unique experience each brings to these important board discussions. 

 The challenges that boards of companies in developing markets face are complex, especially when extended in time. That's why risk governance expertise becomes even more valuable - giving those named Qualified Risk Directors® and those holding other risk governance credentials a vital opportunity to contribute to the governance of these companies with significant impact. In June 2022, more than 60 IFC Nominee Directors from more than 25 countries enrolled in the DCRO Institute Board Members’ Course on Risk®. Several of those enrolled have further been credentialed as Qualified Risk Directors®.

Based on these learnings, their perspectives on board service in developing markets have taken a new direction. We asked five IFC Nominee Directors for stories of how their board service has been impacted by the new perspectives they gained.

 In areas where new technologies and challenging missions are involved, demands for risk governance are significantly increased. Achieving a balance between embracing risk to achieve corporate purpose and renewal, and protecting assets by being resilient to unexpected events is often a delicate balance for directors. The DCRO Institute's motto, "innovate, sustain, create value," is derived from this mindset called "the positive governance of risk-taking." 

Despite the increased need, however, risk governance in frontier areas often emerges alongside the technologies and innovations it is meant to govern. With so much in motion across many frontiers, directors in these critical and fast-moving areas often learn in real-time or look to outside sources for guidance.

We asked four directors from the DCRO Institute community how they are approaching risk governance in their pioneering work.

Board governance of risk-taking across the Middle East and Africa encompasses a vast range of challenges and opportunities. Many countries within this important region face persistent political  instability  and  geopolitical risk, regulatory and compliance complexities, changing cultural norms, and the constant threat of the looming climate crisis. Even more challenging, many countries in this area operate under regimes with reputations for corruption and a frustrating lack of transparency to investors. 

In recent years, these issues have given way to a new wave of governance, a re-embracing of foundational enterprise risk management and governing frameworks. Throughout these regions, opportunities continue to sprout despite the challenges mentioned above.  

The DCRO Institute spoke with several Qualified Risk Directors® and risk leaders across the Middle East and Africa to glean on-the-ground insights. These leaders offer candid insights and a hopeful outlook.