Building a Better Board: Learning to Embrace Risk
- Impact Boards EM
- 6 days ago
- 1 min read
Updated: 2 days ago
How Modern Boards Break Through the Status Quo
The first publication in the Building a Better Board series highlights this fundamental idea: all organizations must learn to embrace risk-taking in order to thrive.
To thrive in the long run, boards and executives must learn to embrace risk – to think and talk about risk in strategic ways, approach it with a fresh perspective, and take risk more confidently. Whether we are considering the launch of start-ups, product initiatives, new hires, expansion into foreign markets, decisions about investment, or new suppliers, businesses must take risks to create value and advance beyond the status quo.
The challenge: many board directors overly associate risk with the potential for loss. In the current environment of geopolitical, technological, environmental, health, and economic turmoil, the draw to this focus is natural. However, this perception of risk as loss brings unhelpful biases into the decision-making process, causing boards to miss out on the benefits that a positive governance of risk-taking can yield.
The good news: there are several things you can do today as a fiduciary to embrace risk throughout your organization and discover untapped competitive advantage.
Read the full publication here. To access other publications, including others in the 8-part series, please visit the DCRO Institute's website.
