According to Deloitte’s Global Risk Management Survey, 62% of CEOs and 77% of board members are not “highly engaged” in addressing cyber threats. CEOs have plenty to think about aside from the intricacies of data governance, risk, and compliance. They’re charged with delivering growth and value for shareholders—which can be seen as a cross purpose with risk management.
Looking at the figures above paints a bleak picture. Chief executives must navigate the muddy waters of both complex compliance and growth, while communicating with a board of directors. It’s no easy task. With this in mind, I outlined three priorities for CEOs to discuss with risk managers in order to properly communicate with the board.
When it comes to the company’s direction, the CEO is steering the ship. The employees, however, who must actually take the company there. As part of overall company culture, creating a culture of risk management for the entire organization is a solid way to keep risk at the forefront of all employees’ minds. In all of their duties, employees should consider how risk management can keep the company on track strategically. The CEO needs to constantly consider emerging threats as they relate to the organization This involves constantly monitoring blind spots, risks to reputation, and threats to strategy, business model, and operations.
One of a CEO’s most critical—but undervalued—tasks is putting the right people in the right positions. It doesn’t end there, however: he or she must also grant them the autonomy and authority to execute their duties with minimal oversight. When it comes to risk, people must be considered as part of the strategy. The CEO should ask himself: is the right CISO, CRO, or other executive in place to keep tabs on risk stature? Are they being held accountable?
All company leaders must act as examples for the entire organization. This means exemplifying an attitude of vigilance and risk management, which can trickle down to employees.
Finally, all company resources should be considered in risk management strategy: people, processes, technologies, et al. As technology evolves, an organization’s offensive and defensive strategies need to be factored into the adoption equation. In the event of a major business disruption, is the company prepared? What kind of tools and technology should be adopted to keep the company safe?
In today’s complex risk environment, CEOs are required to anticipate and proactively mitigate risks before they emerge. It’s a tough task considering everything on his or her plate, but executives can start the process by first attacking risks where they have the most control and oversight. For example, a company’s brand, reputation, and culture are realms where the CEO has a great deal of influence, but under-investment can lead to catastrophic outcomes that take a long time to unwind (just ask Uber). The CEO can address these three things head-on, which can create momentum from which to draw for mitigating risks in other areas.
All in all, as regulatory environments continue to escalate in complexity, and boards take a more serious stance on risk, CEOs must be prepared to understand and proactively communicate about risk management. With the right risk manager and a continual focus on the priorities above, CEOs can set their companies up for sustained growth while keeping risk in check.
Read more: Know Your Third Party Risk
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
