Directors must guard their companies and their stakeholders against risk, keeping a constant ‘weather eye’ on global, macro, national, and local developments in their operating environments.
These risks derive from factors such as cash flow, temporary interruptions to production lines from accidents, power failures, or staff shortages, through to full-blown natural disasters, climate change, and rising sea levels. In between is the myriad of pitfalls and hazards we are all familiar with, disruptive technologies, regulatory breaches and fines, accounting errors, untoward incidents, the rising tide of stakeholder activism, corruption, or running out of crucial raw materials (a brewer’s water, or a mobile device-manufacturer’s so-called ‘rare earth minerals’) for example.
Even riskier though, is damage to corporate reputation and loss of stakeholder confidence. Damage to reputation is widely held as “the risk of risks,” and it is why companies must guard against it, and act swiftly to repair reputational damage if they cannot avoid it in the first place.
Get the Bigger Picture on Risk
Use the comprehensive resources in our Directors’ Watchlist to keep your Board up to date on the latest trends and megatrends affecting business and economies globally. Each and every one of these megatrends will affect your business, no matter what line you are in.
Businesses that do not keep a constant weather eye on these, will be caught off-guard. Megatrends have the magnitude to ruin business opportunities; and, the reputational repercussions from stakeholders discovering business directors were not paying attention could be terminal.
Join 130,000+ other members of our network and use our free resources to manage the “risk of risks.”
It is impossible to manage risk.