Disruption: The new frontier for governance and risk professionals
In a recent blog, Tyro Payments executive director Jost Stollman predicts that disruption is the new frontier for governance and risk professionals and warns that for many the very real risk is tardiness in coming to grips with strategic governance in a new era of digital disruption. He points to the media and advertising industries which have already been turned upside down and now the transformation is moving through the commerce, banking, health and manufacturing sectors making sound governance more challenging than ever. As Mr Stollman says, no one and no organisation is immune from the fourth industrial revolution of disruption.
In fact, many believe that every industry or business that has been disrupted by digital has been disrupted because they were not paying 360-degree attention to how digital might impact their business. They failed to see that in a digital world, enterprises need a real and ready plan driven from a strategic — not operational perspective. And of course, where there is constant change and disruption, risk management should be at the top of the agenda.
Open data, open APIs, smart algorithm monitoring behaviour patterns and red flags signalling emerging risks is changing the philosophy of governance from one of control to one of enablement and empowerment so that all people in an organisation make the right ethical decisions. In addition, boards must be cognisant of the need for specific skill sets, diversity and renewal at both board level and in the executive team. Equally, whether one is the disrupted or disrupter, organisations should familiarise themselves with new technology possibilities, cyber security challenges and organisational design.
A serial entrepreneur and disruptor, Mr Stollman will be part of a panel at the 2017 Corporate Governance Forum in Sydney on 31 May where he and his co-panellists will be discussing transformational governance. This session will explore the dramatic changes happening in organisations and how they constantly need to rethink and engage in best practice in governance, upskilling the organisation, finding the best talent in the market and experimenting with the most sophisticated technology. For more information go to governanceinstitute.com.au/CGF2017.