“How do we increase our board’s effectiveness in strategy and risk discussions?”
I am often asked to provide insights and ideas to this question. Here are a few ideas:
1. Identify Training Needs
Conduct a review of the board’s risk management skills and relevant industry experience. If deficiencies exist, schedule industry or risk-management training.
2. Review Key Assumptions
List all the key assumptions implicit in the company’s strategy and revisit them on a set schedule.
3. Assign a “Devil’s Advocate”
Appoint one director to the role of “devil’s advocate” during board discussions on strategy, constructively challenging assumptions, plans, forecasts, and more. Assign a different director to this role each time strategy is on the agenda.
What ideas would you add to this list? Share them in the comments below!