In its latest Audit Committee Roundtable Report (PDF), KPMG had some interesting observations on whether the board and other governance activities is adapting to the increased pace of business, or the accelerated rate of change and increased volatility of risk.
The basic conclusion seems to be that most organizations are struggling.
- Only 39% are satisfied that governance activities are focused on the areas of greatest risk to reputation and brand.
- Just 24% are satisfied that management has an effective process that links risk 'hot spots' to strategy and execution activities.
There also is a concern that the board is not sufficiently engaged and adding value to the setting of strategy and management of outcomes (i.e., of risk).
How are your board and audit doing? Do they review and ask appropriate questions of management about strategies and risk frequently enough?
See also this related discussion of McKinsey advice on the frequency of strategy and risk discussions by the executive leadership team.
Are your board and executive leadership team operating the same way they did in past years, before the pace of business and rate of change in risk accelerated?