Last week, I had the privilege of facilitating a Risk Appetite Statement workshop with a board deeply committed to stewarding their organisation’s future. The session sparked powerful conversations about the evolving role of boards in managing risk.
Traditionally, board discussions centred on current and known risks — cyber threats, compliance obligations, financial exposures. But in today’s volatile environment, emerging risks demand just as much, if not more, attention. In fact, research shows they now occupy almost half of boardroom agendas.
So, what does this mean for directors and leaders? A few key reflections stood out:
🌏 Look outward, not just inward.
Globalisation and digitalisation mean risks can come from anywhere, often faster than expected. Boards must scan the broader value chain — suppliers, partners, stakeholders — and collaborate to strengthen resilience.
🎯 Focus on consequences, not just events.
Too often, risks are framed as single events (e.g., an election result). The more important question is: what are the consequences for the organisation (e.g., a trade war or supply chain disruption)?
We may not be able to predict every possible event or influence the outcome, but consequence-based thinking helps us prepare for a wide range of scenarios, even those not yet on the radar. COVID-19 is a powerful example. Few could have foreseen the pandemic itself, but organisations that had contingencies in place, such as the ability to shift their workforce to remote operations at short notice, were far better positioned to adapt.
🌐 Diverse perspectives reduce blind spots.
Many assume you need to be of a certain generation or experience level to add value to a board. However, a board of like-minded voices risks missing critical information. Generational, experiential, and cultural diversity maximises the ability to identify and mitigate emerging risks.
⚙️ Invest in “no-regrets” capabilities.
Crisis management, contingency planning, and organisational agility are smart investments. Even if you can’t predict the exact event, preparing for potential consequences (e.g., sudden shift to remote work, cyber-attack) enables faster adaptation.
🏛️ Non-financial risks can be the biggest risks.
Reputational harm, cultural decline, or erosion of stakeholder trust can pose existential threats that outweigh immediate financial losses.
At its core, a board’s accountability is clear: to deliver the organisation’s purpose and value. That requires the right strategy, resources, and governance, while anticipating what could get in the way.
The challenge is not just to reflect on what has gone right or wrong, but to look ahead:
- What risks are emerging on the horizon?
- What consequences could derail delivery?
- What contingencies do we need in place?
Risk is never static, and neither should our governance approach be. Regularly reviewing risk appetite, governance frameworks, and registers is critical. Simplicity is key — overly complex systems often fail in a crisis, leaving people unsure of what to do.
Practical tools like scenario planning and role-playing exercises build agility, help boards anticipate consequences, and strengthen the organisation’s ability to respond effectively when the unexpected hits. To put it bluntly, when the s**t hits the fan, you need to ensure you have the right people in the room to make critical decisions under pressure.
At EHQ, we support boards and senior leadership teams to strengthen their approach to risk, resilience, and governance through tailored facilitation.
Our Risk Appetite workshops help directors and executives:
- ✔ Clarify risk appetite and tolerance
- ✔ Align around purpose and strategy
- ✔ Anticipate and plan for emerging risks
- ✔ Build confidence in decision-making
If your board or leadership team is ready to take a more forward-looking and resilient approach to risk, let’s connect.
🎧 Sharing a great podcast that dives deeper into this topic: The Director Podcast – Are boards managing risk effectively?
#ehqconsulting #risk #leadership #strategy #facilitation
Shorter LinkedIn Post (Profile Version)
🔍 Are boards managing risk effectively?
I recently facilitated a Risk Appetite workshop with a board and was reminded of just how much the role of directors has shifted. It’s no longer enough to focus only on known risks. Emerging risks, fuelled by globalisation, digitalisation, and volatility, are taking up almost half of boardroom conversations.
A few key takeaways:
✅ Look across the value chain and collaborate with stakeholders.
✅ Focus on consequences, not just events.
✅ Build diverse perspectives into risk conversations.
✅ Invest in “no regrets” capabilities — agility, crisis management, and contingency planning.
Boards exist to ensure strategy, resources, and governance deliver value. To do that well, they must not just look back at what went wrong but also look ahead to what could get in the way.
Facilitating Risk Appetite conversations with boards and exec teams is some of my favourite work — it’s where strategy, purpose, and people truly come together.
At EHQ, we believe in human-centred commerce: when leaders put people at the heart of decisions, organisations are not only more resilient but also more capable of delivering sustainable value.
If your board or senior leadership team could use a fresh lens on risk and resilience, I’d love to help. A well-run workshop can spark the conversations that align people, purpose, and performance, and make all the difference when uncertainty hits.
📩 DM me or drop a comment if you’d like to explore this for your organisation.
🎧 Sharing a great podcast that dives deeper into this topic.
#ehqconsulting #risk #facilitation #strategy
Short LinkedIn Post (Alternate)
🔍 Are boards managing risk effectively?
I recently facilitated a Risk Appetite workshop with a board and was reminded of how much the role of directors has shifted. It’s no longer enough to focus on known risks — emerging risks now take up almost half of boardroom conversations.
Key reflections:
✅ Collaborate across the value chain
✅ Focus on consequences, not just events
✅ Bring diverse perspectives to the table
✅ Invest in “no regrets” capabilities like agility & crisis planning
At EHQ, we believe in human-centred commerce: when leaders put people at the heart of decisions, organisations become more resilient and deliver greater value.
📖 Read my latest blog to dive deeper: https://www.linkedin.com/pulse/boards-managing-risk-effectively-ehq-coaching-and-consulting-n2lnc
🎧 Also sharing a great listen: The Director Podcast — Are boards managing risk effectively?
#ehqconsulting #risk #leadership #strategy #facilitation
