Skip to content

28 January, 2023

Subscribe Advertise About Us
  • My Account
  • Register
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
    • Categories

      • View All
      • Board Moves
    • stakeholder governance

      Threat to stakeholder governance from Twitter sale ‘overstated’

      Academics and experts argue stakeholder governance will always come second while the law puts the...

    • Davos resilience News round-up: this week in governance

      Lessons from Davos; companies risk sliding back on ethical practices; economics affects everyone; Sir John...

    • audit reform UK Audit reform in the UK risks ‘losing momentum’

      The Financial Reporting Council still awaits the proposed new statutory powers that would allow it...

  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • climate litigation

      Climate litigation: how 2022 will shape 2023

      This past year saw a rise in climate litigation, with a focus on the commercial...

    • value whistleblowing

      Why we need to value whistleblowing

      Encouraging staff to speak up and stop harm can reduce legal and reputational risk—both for...

    • HR corporate trust

      HR: How to build employee trust in corporate culture

      The right HR director is essential to lead on a culture that gets the best...

  • Comment
      • View all
    • A week of business moving to the centre of human rights

      A week of events signals the initiatives underway to have companies play a central role...

    • audit reform IIA Why we need audit reform right now

      There is an "urgent need" for reform to the audit landscape as well as internal...

    • climate change energy crisis Sustainability and climate change: the other energy crisis

      The world is addicted to cheap energy. We need to admit this and have the...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • Board priorities 2023 Board priorities 2023: tact, trust and transparency

      We asked key figures what would help boards this year. The answers ranged from 'smarter...

    • Group of investors/shareholders in glass building Climate issues likely to figure prominently at next year’s AGMs

      A recent webinar heard that say-on-climate voting is expected to rise, while ESG remains a...

    • NEDs role NEDs ‘needed more than ever’ in times of uncertainty

      The non-executive director’s role is to both challenge and listen to management, agreed the panel...

  • Careers
      • View all
      • Selection
      • Board Moves
    • NED recruitment News round-up: this week in governance

      Your country needs NEDs; governance does not compute; financial firms get more women on board;...

    • HR corporate trust HR: How to build employee trust in corporate culture

      The right HR director is essential to lead on a culture that gets the best...

    • powerful CEOs Boards want powerful CEOs in tough times

      Single-minded chief executives have greater staying ability when business conditions are uncertain, research finds

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Corporate & Advisory Services
    • Edelman Trust Barometer 2023

      2023 Edelman Trust Barometer

      The report is the result of the Edelman Trust Institute's research, which sampled more than...

    • Sophos 2023 Threat Report

      Barriers to entry for would-be cybercriminals are lower, with tools and tactics becoming available to...

    • The C-Suite Outlook 2023: On the Edge

      The Conference Board 2023 C-Suite Outlook survey reveals the events that C-suite executives see as...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Selection
    • Board Expertise
    • finance
    • Technology

Risk report reveals pandemic forced companies to review strategy

by Mazars on July 15, 2020 Mazars SPONSORED

Survey reveals almost 60% of firms have revisited their strategy, and highlights a lack of board knowledge about key risks—including climate change.

Covid-19 Risk Survey

Image: Ffikretow/Shutterstock

Almost 60% of companies are reviewing their business strategy as a result of the pandemic, while 43% of senior business leaders say Covid-19 is a fundamental threat to their organisations, according to new risk research.

The Leadership in Risk Management: European Report 2020, conducted by Board Agenda in association with professional services firm Mazars and business school INSEAD, finds that while the pandemic represents an existential risk to a huge number of companies, many boards have been able to respond robustly.

A resounding 96% of respondents say their controls and processes performed well during the crisis, while 80% say they are confident their response to the crisis was “clearly defined, communicated and monitored”. However, only 55% of the more than 300 chief executives, chief financial officers, board chairs and non-executives that took part in the survey could say their organisations were prepared for a pandemic.

Risk beyond the pandemic

The emergence of the global Covid-19 pandemic in late December 2019 placed risk management at the forefront in board discussions.

But the research also examines risk preparedness in other areas prior to the outbreak. Reflecting on risk before the pandemic became a global issue, seven out of ten of those surveyed say their boards were “sufficiently skilled” to address all the risks in their market sectors.

That’s reassuring because respondents say the risk environment has been expanding. Almost three-quarters say their boards have been confronted with “unexpected and unanticipated” risks in the past five years; nine out of ten say their companies face more risks than five years ago.

Despite that, half the respondents say their risk appetite did not change in the 12 months prior to the pandemic. And half say they have transformed the diversity of their boards to strengthen the response to risk management challenges.

Information gaps

However, there are concerns. Only half of those polled could say they received “all the information required to consider all the risks faced by their organisations”. While respondents’ knowledge in finance and regulation is solid (91% and 88% respectively) their knowledge of issues such as climate change (34%) and cybersecurity issues (38%) is low. This prompts concern that boards could be heavily exposed to risks they may not believe to be significant.

Writing for Board Agenda, Matt Dalton, head of risk management at Mazars, and Anthony Carey, head of the firm’s board practice, say the survey reveals room for improvement, especially in the area of poor quality information. “This undermines resilience and should be a wake-up call for many,” they write.

They are also concerned about the way boards consider the future risks their companies face.

“The crisis has been highly disruptive, and a key lesson is that we need to get better at scanning the horizon and considering preparedness for the unexpected. Only 55% prepared for a pandemic. Boards need to ensure they have good external antennae on key risks,” they say.

Attitudes to issues such as the environment are also a source of anxiety. “Boards need to address a worrying lack of knowledge over some of the major risk areas, in particular cyber and climate risk,” they say.

Unknown risks

Professors Enrico Diecidue and Tim Rowley of INSEAD agree.

“The findings of this survey provide food for thought for further conversation, questions, reflections and potential remedial actions,” they write.

The Covid-19 crisis, they argue in the report, reveals the need to prepare for unknown risks with “rigorous scenarios” while ignorance of climate change risk at board level needs to be confronted. They challenge boards to consider the processes that will generate risk evaluations and risk appetite and how they should be managed.

“Overall the survey underscores the need for boards to have a systematic approach to address risk evaluation and integration in the face of rapid change and uncertainties in the business landscape,” they say.

Read the full report here.

 

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Companies made 'fake cuts' to CEO pay during pandemic
    March 30, 2022
    CEO in face mask

    Study shows US bosses who took salary cuts in 2020 saw no overall reduction in compensation once other elements were taken into account.

  • EuropeanIssuers calls for EU law to apply to 'third country' companies
    December 17, 2021
    EU flag

    The proposal raises the possibility of the Corporate Sustainability Reporting Directive being applied to UK firms trading online in the EU.

  • What boards need to know about sanctions risk and legislation
    September 20, 2021
    Ryanair plane in Vilnius, Lithuania

    The forced diversion of a Ryanair flight has put sanctions on the news agenda. Boards should be aware of the risks and legislation.

  • What boards need to know about sanctions risk and legislation
    September 20, 2021
    Ryanair plane in Vilnius, Lithuania

    The forced diversion of a Ryanair flight to Belarus has put sanctions on the news agenda. Boards should be aware of the risks and legislation.

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

board expertise, climate change, coronavirus, cybersecurity, INSEAD, mazars, risk, risk appetite, risk management, risk survey

Search


Sign up to our Newsletter

Receive independent news, thoughtful journalism & expert insights about leadership, corporate governance & key boardroom issues straight to your inbox every week.

SIGN UP

Follow Us

 

 

 

 

Most Popular

  • Audit reform in the UK risks ‘losing momentum’
  • Activist investor campaigns rise back up to pre-Covid levels
  • How to ensure stakeholders trust your sustainability reporting
  • Elon Musk weighs in against ISS and Glass Lewis
  • Climate litigation: how 2022 will shape 2023
 

Featured Partner Profile

Diligent

Diligent

Diligent Corporation, which was founded in 2001, is headquartered in New York, NY with a European HQ in London. Diligent’s modern governance platform empowers leaders and teams at every level of the organisation to digitally transform and create ...

Featured Partner Resources

2022 AGM Season Forecast: An Eye on The Horizon

To help prepare for AGMs in 2022, Equiniti (EQ) hi...

Stakeholder Engagement: A Roadmap for UK Plc Boards

This guide aims to provide directors and their col...

Digital Boards: How Technology Adoption is Driving Culture Change and Resiliency

Digital tools proved their worth to boards during ...
Leadership in AI report

Leadership in AI

This report from Board Agenda and Mazars, in assoc...
Creativity in a Crisis: a Boardroom Map for Innovation

Creativity in a Crisis: a Boardroom Map for Innovation

In the uncertain times at the height of any crisis...
Board Directors Guide to D&O Liability Insurance - November 2020 - AIG & Board Agenda

Board Directors' Guide to D&O Liability Insurance

Directors face liability over a range of new threa...
Leadership-in-Risk-Management-Board-Report

Leadership in Risk Management: Board Report

Board Agenda, in association with Mazars and INSEA...
Director's Guide to Internal Investigations

A Director's Guide to Conducting Internal Investigations

An internal investigation must be handled meticulo...

 


 

ADVERTISE – FREE CORPORATE LISTING

FREE - Add your company profile to our Corporate & Advisory Directory.
ADD

ADVERTISE – PROMOTE YOUR REPORTS & WHITEPAPERS

FREE - Add your company profile to our Corporate & Advisory Directory.
Add Resource

Register Free

Register to receive free article views, selected resource downloads, and all the latest news alerts straight to your inbox. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Corporate & Advisory Services
  • Media Marketing Solutions
  • Contact Us
  • Careers
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
  • Sitemap
|