Overseeing the New Normal
Adaptive governance is the key to addressing disruptive threats to long-term value
Disruptive risks are no longer phenomenons for businesses and boards. They are the new normal, define the current operating environment, and require a swift, comprehensive response due to their immediacy.
How can directors do a thorough job of assessing disruptive risks and then of guiding their companies toward effective responses? More broadly, how can directors fulfill their core responsibilities for overseeing performance, strategy, risk management, and enterprise content management when volatility, uncertainty, complexity, and ambiguity (VUCA) are the only constants?
The 2018 Report of the NACD Blue Ribbon Commission on Adaptive Governance:Board Oversight of Disruptive Risks provides directors with the following insights and tools:
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a functional definition of disruptive risk
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characteristics of the current environment—and their implications
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a definition of Adaptive Governance as a framework for overseeing disruptive risks
- the essential components of Adaptive Governance
- recommendations for putting Adaptive governance into practice
The core report is available to the public. Download your complimentary copy now to understand what constitutes disruptive risk and what boards must do to address it.
Join NACD now for exclusive access to the Adaptive Governance Toolkit. It includes sample documents, questions you can use to guide discussions among directors and with management, tools for benchmarking current practices, and other resources for putting adaptive governance into immediate practice.