A best practice approach for leadership risk

Human capital drives economic prosperity. People can account for half of the operating costs of a business and significantly influence results. Yet whilst companies analyse and mitigate against enterprise risk, they overlook human capital risk.  The role of the board includes responsibility for governance; therefore leadership risk management should receive the full attention of the board. In many companies, efforts are underdeveloped, miscommunicated or ignored.

We believe that market analysts and shareholders should reward directors who take a best practice approach to leadership risk that encompasses the senior management team as a collective, the make-up of that team, and their ability to execute strategy and deliver results. Effective leadership risk management improves business continuity, minimises disruption, and makes a business more agile and resilient.