Since 2014, board of directors have actively engaged in, and essentially own, the corporate strategy. Prior to that time, the board was in a far more passive role, and the need arose for a far more active involvement by the board. The behavior of boards was transformed. Now it is time for another shift in the way that corporate strategy looks at the evolving competitive landscape.
It has been long recognized that geo-economic factors have an enormous influence on how corporations will behave and survive in the future. However, today the activities of the various governmental and non-governmental “actors,” on the geo-economic stage, represent a huge part of the general risk profile of every business enterprise; and the private sector cannot rely on government to manage or even identify those risks. In fact, even simply identifying all the relevant visible and hidden risks, that can have a significant impact is very challenging and requires focused effort and specialized expertise.
Today, all risk, including strategic risk, operates in an environment of permanent geo-economic chaos. Businesses are locked into antiquated risk processes and assumptions that are obsolete in providing an effective baseline for current and future decision-making. The hyper advancement of geo-economic risk for companies requires new methods for managing all risk, including elevating Cyber as a strategic risk.