Wednesday, April 29, 2020

The Monthly “Digital Boardroom” Book Tuning: The Corporate Board GRC Practices Apr. 2020

The corporate boards, as one of the most critical leadership pillars in modern organizations, play the crucial dual role of guidance and governance, to make a high impact on the digital paradigm shift.

Modern corporate boards play significant roles in guiding businesses in the right direction and achieve expected business results. Due to the “VUCA” characteristics -Complexity, Uncertainty, Ambiguity, and Velocity of the Digital Era, the directorship in any organization must have the agility to adapt to changes and build abilities to advise, inspire and motivate a group of people toward accomplishing shared visions and goals.

Here are the multiple perspectives of shaping a strategic boardroom with digital acumen.

The Corporate Board GRC Practices   

Building the High Impact Digital Board with Dual Roles of Guidance and Governance The fast-paced changes and overwhelming growth of information bring both significant opportunities for business growth and unprecedented risks businesses have to deal with. Organizations today are not mechanical systems that keep spinning in a static business environment, often go nowhere. Digital businesses are organic living things that need to continue growing in an expanding business ecosystem with high velocity and hyper-complexity. Therefore, the corporate boards, as one of the most critical leadership pillars in modern organizations, play the crucial dual role of guidance and governance, to make a high impact on the digital paradigm shift.

Three “G” Practices in Corporate Boardroom With rapid change and exponential growth of information, how successfully organizations can handle continuous digital disruptions depends on how fast and capable they can adapt to the ever-changing environment. The senior leadership of the organization such as BoDs, like the steering wheel, needs to navigate companies through uncharted water, to ensure their ships are moving in the right direction.

“Digitizing Board- The multifaceted Aspects of Digital Ready Board” Book Introduction Chapter 6 "Governance Champion" Board  The purpose of the board of directors is to direct and monitor the organization. This purpose is generally known as “corporate governance.” Governance is the structure and processes of authority, responsibility, and accountability in a business or organization. The ability of boards to oversee and advise management so as to ensure the best fit between short-term profitability and long-term sustainability. While “corporate governance” can be modeled in general terms, and while certain aspects of corporate governance are heavily regulated in some jurisdictions, there is no standard model for it because the context for corporate governance includes a wide range of circumstances and capabilities which are subject to constant variability. So Boards need to develop a good sense of the appropriate scope of decisions, and what is pertinent to its role versus what is really the purview of management.

A Board Beyond Compliance  Corporate governance is the system by which business corporations are directed and controlled. Compliance is the management discipline of designing and implementing effective steps to ensure that the company actually complies with the laws and regulations relating to its operations. There is a strong compliance element to corporate governance but corporate governance is about practice as well as policies. As one of the most important governance bodies, how can the Corporate Board go beyond compliance?

What’s the Digital Theme to Run a Global Board The world has become hyper-connected and interdependent, there are many common management practices in building a multinational organization. However, there are still very few truly global companies or empathetic global leaders or boards. From the corporate governance perspective, What’s the digital theme to build and run a global board?

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