#236 Risk Is Changing. Is Your Board Keeping Up? with Patrick Dunne, Experienced Chair and Board Member in Business & Social Enterprise
#236 Risk Is Changing. Is Your Board Keeping Up? with Patrick Dunne
In this thought-provoking episode of The GrowCFO Show, Kevin Appleby engages with Patrick Dunne, an experienced Chair and Board Member in both business and social enterprise sectors, to explore the evolving landscape of risk management at the board level. The conversation examines how traditional approaches to risk governance may no longer be sufficient in today’s complex business environment, where non-financial risks increasingly dominate the risk landscape.
Patrick Dunne, recently awarded an OBE for his services to philanthropy in Africa and the UK, shares insights from his viral LinkedIn article suggesting that the conventional audit and risk committee structure requires fundamental rethinking. The discussion challenges finance leaders to consider whether their current risk management frameworks are adequately equipped to address emerging threats, particularly those stemming from geopolitical instability, technological disruption, and social change. Dunne advocates for more diverse risk committees that incorporate varied perspectives across generations, backgrounds, and expertise.
Key topics covered:
- Traditional audit and risk committees are often dominated by financially-oriented individuals from similar backgrounds, limiting their ability to identify and address non-financial risks
- Organizations should consider establishing separate risk committees with diverse membership to bring fresh perspectives to risk identification and management
- Effective risk management requires focusing on consequences rather than events, preparing for the impact of risks rather than the risks themselves
- The concept of “combinatorial risk” – where multiple events occur simultaneously – presents particular challenges that boards must learn to navigate
- Diversity in risk governance is not just about demographics but also about including different thinking styles, experiences, and generational perspectives
Links
Timestamps
- 0:12:24 Patrick explains why the prevailing model of audit and risk committees needs rethinking in light of today’s dominant non-financial risks
- 0:18:35 Discussion of how focusing on consequences rather than events leads to more effective risk management, illustrated by examples from the COVID-19 pandemic
- 0:25:10 Patrick emphasizes the importance of distinguishing between “worrying” and “thinking” in risk management
- 0:32:18 Exploration of how diversity and inclusion in risk committees leads to better risk identification and mitigation strategies
- 0:41:05 Discussion of data security and cyber risk as critical areas requiring specialized expertise on risk committees
- 0:48:22 Patrick shares practical advice for boards looking to modernize their approach to risk governance
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