Governance and Boards

An introduction to the special issue of the Journal of Risk Management in Financial Institutions on Risk Governance.

An article in the special issue of the Journal of Risk Management in Financial Institutions on Risk Governance. 

An  article from the Conference Board of Canada's Risk Watch on the increasing expectation from investors that boards establish formal risk committees.

As political and economic interactions become more complex, and as disruptive technologies and processes make innovation cycles massively shorter, boards of directors are paying more attention to risk. 

An article from Forbes where the author speaks with two highly influential former executives regarding the importance of corporate governance using the framework outlined in the book by David R. Koenig.

An article on the parallels between the well-known Moneyball story and proper risk governance structures - creating value by altering the possible outcomes for your organization or investment portfolio. .

Governance is a measure of trustworthiness, and even further, governance is a measure of the respect that companies have for their owners and other providers of critical capital.  I’ve long stated that governance is much  broader than the G that populates ESG ratings which have become so  popular. In fact, ESG is more accurately described as a subset of what constitutes governance, not vice versa. What did 2018 reveal about this  mindset?   

Rather than reviewing reports on successes and failures - what read and react boards do - the next step for a board needs to be identification of the commons among the elements that drive success. 

Ultimately, the work of risk managers is about preserving and enhancing the ability for organizations to create value. 

Learn how to apply the Value Equation in equity valuation, how equity cash flows are similar to mortgage-backed-security cash flows, and how risk expectations can distort portfolio performance.

This article appeared in Strategic Finance. Defining and achieving corporate purpose is a major challenge for today’s executive teams and their boards. Can companies create long-term sustainable value by managing risk and thereby realizing competitive  advantage? How can companies best overcome the obstacles? 

Are there critical risks that our brains are unable to see? Is there a solution?

The most interesting debate in corporate governance is not happening in  the boardroom or between activist owners and boards. Rather, it’s  happening all across a field of public (aka “permissionless”)  blockchains.

Skepticism over centralized authority, especially following the near-collapse of  the global financial system in 2008 led to the development of  “trustless” networks. One example is the blockchain behind Bitcoin.

The digital era has ushered in a new set of risks and opportunities that require an innovative response. To navigate these challenges successfully, organizations must adopt a forward-looking manner in their governance practices, anticipating risks and preparing for them before they materialize.

Amid growing demand for accountability and assurance that data, trade secrets, and infrastructure are secure from cyberattacks, boards of directors often find themselves without clear guidance on their responsibilities as governors.

Many people in risk management are defensive about risk, or they fear it. I seek to give organizations a better understanding of risk so they can handle it confidently and better achieve their goals.

An article on the evolution of risk managers towards aiding in the creation of value. 

An article in the special issue of the Journal of Risk Management in  Financial Institutions about potential failures in the governance of  risk.

An  article on the importance of changing enterprise risk management from a  focus on the downside to inclusion of the pursuit  of gain. 

An article on the way in which effective risk management can add value to organization.

An editorial on the potential cost of risk management on innovation.

An article about the conflicts a Chief Risk Officer faces when engaging in both oversight and advocacy.

A summary of a panel discussion featuring David R. Koenig, Jean Hinrichs, Charles Goldenberg, and Bob Mark. The panel was moderated by Gaurav Kapoor of Metric Stream.

An article in Bloomberg Law about the chief risk officer is likely becoming a hot commodity in the wake of the Coronavirus pandemic. (Quoted)

With David X Martin, we discuss how boards and organizations can foster a positive embrace of risk-taking through integrating risk like other costs, resiliency planning, forward-facing techniques, and better board engagement.

A webinar looking at why the governance of risk-taking is the primary difference between company success and company stagnancy, part of the Shaparency series.

The surprising and complex intersection of risk, risk perceptions, and an organization’s ability to create value (let alone survive).
 

Keynote address to the Risk Beyond 2022 Conference on how to look past the fog of today and reshape the future.
 

A demonstration of Portfolio Shaping -  going well beyond typical ESG analysis whereby your equity portfolio performance is enhanced through better risk-taking.

Learn how to make ESG Investing more successful by simultaneously addressing the requirements of investors, the fiduciary obligations of investment managers and boards, along with the needs of those in your business social network. 

A discussion of the history of "chief risks" going back about 50 years, as well as our  progression to the state of risk management and risk governance today.  Q&A with Todd Davies and me is also available at 1:21:20.