2018 was all about engaging with the Fourth Industrial Revolution (Industry 4.0), blurring lines between physical and digital worlds and a major transformation of how Business Processes are carried out. To drive Positive Growth, Efficiency, Effectiveness, Sustainability and Transparency in 2019 and beyond, Businesses, Companies and Organizations need to adopt a new innovative mindset for Action. Before moving forward with new goals, let’s pause for a moment and reflect upon some of the major lessons learnt in 2018.
For a year end round up, we saw World’s biggest Social media platform alleged for misusing User data, a massive data breach in a leading Hotel Company affecting up to 500 million of it’s customers, and crisis in a major Auto Company that led to 10% loss of it’s share value in a day and oust of it’s Chairman. These instances of Governance failure are not just about making harsh judgements, instead they are about looking for patterns and trends that will impact positive growth in 2019.
Here are 3 Key Projections for 2019 as suggested by global associations like NACD
1. 360 degree visibility and Transparency into not just Enterprise Risks, but also unfamiliar alien Risks
As per a recent survey by NACD, Public company directors rated shifting economic and political developments as major trends that will affect their companies next year, along with Changes in the Regulatory environment and the threat of an economic slowdown in 2019. Elevating privacy risks to the forefront of board agendas is definitely a game changing formula for sustainability in 2019 and beyond. Organizations have started to take proactive steps to ensure that they stay informed of the existing Regulations and of those developing on the near horizon to counter non-compliance Risks.
2. Increased focus on Environmental, Social and Governance (ESG) Strategy
Environmental, Social and Governance (“ESG”) issues have moved to centre stage. Investors and other corporate governance advocates continue to push for greater transparency and expanded disclosure of companies’ policies on these issues. Companies globally are deploying a data-driven approach to measure the quality of a company’s public disclosure on environmental and social issues, including sustainability governance, and to identify disclosure shortfalls, as institutional investors are increasingly using ESG data in their assessment of potential investments.
3. Leadership from the Boardroom : Giving importance to Diversity
The stakes for having the right “Tone at the Top” has never been higher. Increasingly, shareholders expect Boards to have effective processes in place to evaluate board performance and refreshment. Diversity is a critical part of this, as shareholders pressure boards to ensure that they have the right mix of skills, perspectives, and tenures to execute the company’s strategy. Directors need to have the creative Leadership skills and experiences that not only align with their Company’s long-term strategic direction but also enable their boards to effectively advise management amid unprecedented change and business disruption.
For a quick summary, the key ingredients of the recipe for success in 2019 revolve around identifying alien Risks, increased focus on ESG Reporting and having the right Diversity in the Boardroom. Let’s navigate 2019 with Confidence, Agility and Innovation using the lessons learnt from 2018, because There is no failure, we either Succeed or we Learn.
Have a Confident and Happy New Year 2019 !
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