Firms boost risk monitoring to bolster long-term resilience: Deloitte

Strategic risk oversight and scenario planning are the most common activities.

Firms are increasing activity to monitor risk and oversee strategy, with 86% noting a rise in efforts to bolster long-term resilience, according to a Deloitte report.

The report also found that strategic risk oversight and scenario planning are the most common activities, cited by 71%. Moreover, nearly three-quarters (73%) are dedicating more time to strategy development and scenario planning this year.

Deloitte Global Chair Anna Marks stated that building long-term resilience requires a model where boards take a more proactive approach to supporting and challenging management.

Meanwhile,  top concerns for the short term include geopolitical and economic volatility (55%), security and cybersecurity (50%), rapid technological advancements and digital disruption (42%).

In terms of long-term focus, companies are prioritising rapid technological advancements and digital disruption (52%), human capital (42%) and geopolitical and economic volatility (41%).

The report also noted how confidence in resources for long-term resilience is high for financial resources (82%), but drops for human capital (64%) and technological resources (63%).

To be effective in setting goals, open, transparent communication between the board and CEO is cited by 66% as the most crucial factor for future success.

This is evident as board chairs are facilitating more collaboration, with 57% adding or increasing the frequency of informal meetings with the CEO, and 50% holding more joint strategy sessions.

Whilst 86% of board members feel they provide the right support, only 73% of C-suite executives agree, marking a 13-percentage-point gap in sentiment.