I will be participating in a panel at the next Governance Professional of Canada annual conference in Quebec City on august 19th. The topic of this panel is: The to-do lists for Resilient Board of directors. My comments will reflect the point of view of private company boards. Board resiliency is a fascinating topic that is getting more attention in these times of accelerating changes. To enhance my thinking on this topic and make my comments more relevant, I have been reading up about diversity, courage in the board room, long term strategic planning. If you have interested articles to propose on resiliency, please comment on this post. I will also be happy to meet you at the conference, so do not hesitate to come and say hello. #board #governance
A perspective from NACD on top emerging technologies that will impact sustainability of businesses in the next few years and should be monitored and included in strategic planning discussions. I would argue that two of these five are already creating havoc, Artificial Intelligence and Cybersecurity. Blockchain is taking more time than expected to become mainstream and will possibly be relevant in focused industries. Hyper-connectivity and Symbiothech Systems are in their early stages and driven by the penetration of AI into business processes. For example, as AI becomes an intrinsic part of on-line services, faster communication speeds will become a critical success factor. This article also includes a useful list of questions to assist directors in the oversight of emerging technologies. #board #digital transformation
I attended the Deloitte Technology, Media and Telecommunication trends presentation last week, always relevant to integrate in company strategic planning discussions. Duncan Stewart highlighted the Gartner Hype Cycle from 2018 and noted that it forecasts that for the next 2 years no new innovations will reach the plateau of productivity, and only 4 in the next 5 years. Hence few new technologies will disrupt businesses. Corporate directors must use this respite to accelerate their digital strategy and transformation and to integrate technologies that are already widely used into their strategic planning. Otherwise they will be ill prepared for the next wave coming.
An interesting article for boards looking for a new CEO that can lead them through digital transformation. CIO’s share their opinions on what makes a successful CEO. Of interest to me where the fact that CEOs are needed that can build value out of ‘legacy businesses’ by fueling transformation within products, services, and business models; CEOs that can think about medium and longer term as well as sustainability and the current quarter. This means finding collaborative, inspirational CEOs that can work across the organization and support the establishment of a ‘digital mindset’ to build the business of tomorrow which is in large part digital. And having a digital mindset at the board. . #digitaldiversity #boardofdirectors #digitaltransformation
A very efficient and straightforward tool for corporate directors that want to evaluate the cyber-risk level of their organisation. How many of these 10 steps do you achieve, and do you discuss indicators of performance at the board level? #cybersecurity #board #risks
I will attend the Infoway partnership conference in Montreal on November 13th and 14th that promotes the use of #digitalhealth to improve access to Canadian healthcare and to meet other Canadian leaders in the field. Come and meet me there.
I will be a facilitator at the Women General Counsel event on November 14th 2018 in Toronto: Workshop for Creating your Personal Board-ready Plan. Come to think about your board career and meet me there.
I will attend the Women Get on Board event: “Disruption and Transformation – The Board’s Role in Overseeing Opportunities and #Risks” on November 14th 2018 in Toronto. Come to learn more about how #boards need to evolve in changing environments, network with other board members and meet me.
The Canadian government has announced that starting November 1st 2018 Canadian businesses will have to report data breach to affected individuals and to the Office of the Privacy Commissioner of Canada. There are also new record-keeping requirements regarding data breach that organizations must follow. Although Alberta and Quebec are not covered under PIPEDA, it is expected they will both adopt similar requirements. As a board member, you should discuss whether you are impacted by these new requirements and if anything must be put in place to comply with them. Non-compliance could result in increasing reputation and financial risks to the organisation. Canadian businesses that collect data from European countries are also affected by changes to the GDPR enforced since May 2018 that include fines for non-compliant organisation of up to 4% of revenues. Data protection is definitely a topic to discuss at your next board meeting.
This discussion paper from NACD presents blockchain as a disruptive technology that could be as transformative to business as the internet. And I know the same arguments apply to Artificial Intelligence (AI). It highlights the new risks posed by introducing blockchain (or AI) to manage some of your data as a topic of interest to the board. It also argues that boards have to discuss blockchain regularly as part of their strategy session, conceding that expertise on this topic is scarce and that wider adoption will not happen before 2020. Directors of companies that are the closest to be impacted by these technologies, financial services and healthcare for example, have a responsibility to start educating themselves. Do you have good reading material adapted to directors to suggest on blockchain and AI?
The weaponization of Cyber-attacks has impact on cybersecurity governance. Board of directors of companies owning critical infrastructure or having world-wide subsidiaries are more at risk then ever.
Cyber-attacks became a geopolitical weapon on 2017, and this article explains in simple terms what changed in 2017 and shows the main attacks like WannaCry happened on a different level. It takes us through some of the major breaches of 2017 and shows how ransomware can now be used as a weapon, for example a possible Russian ransomware attack in Ukraine spread to companies with subsidiaries in that country.
I wrote this article based on an outstanding read from Deloitte, to highlight how rapidly changing environments lead to the need for new steps in the strategic planning process. I adopted some of the proposed elements in my reflections about the strategies of my different boards, (1) the need to develop a vision with management of what the market and industry will look like in 10 years; (2) and from that vision, identify the emerging edges that the company has that can be developed to position it better in this future reality.
Are you concerned about exponential changes and do you have other perspectives to share on the role of the board in changing environments?
While researching the trends in adoption of the NIST cybersecurity framework, I found this article that strongly supports the adoption of the NIST Framework. As a board member, I agree because the framework bridges the gap between security experts and corporate directors. It is simple, Identify, Protect, Detect, Respond and Recover—five elements only. It allows for people who are not cybersecurity specialists to participate in cybersecurity decisions, which is expected from directors to meet oversight duties. Interesting to note is the fact that the average amount of time it takes an organization to find malware on its system, for a non-bank, is about five months, a wake-up call for corporate directors. Have you discussed adopting a cybersecurity framework at the board level, do you know if your company has one? If you want to learn more about the NIST framework, read my article http://www.joseemorin.ca/en-articles/2017/7/3/cyber-risk-oversight-tips-for-corporate-directors-to-improve-understanding-and-involvement
This article presents an interesting compilation of the board skills matrix disclosed by 307 public American and Canadian companies. Not surprisingly, 99% of boards require financial expertise and 75% of all directors have that skill. Such strong financial skills representation in directors does not match the need for more board diversity. More troubling is the fact that only 36.8% of companies included the need for technology expertise in their board competencies, and that only 14.2% of directors qualified for that skills, the lowest of all ranking. The board has an essential role to play in the digital transformation of many businesses and in cybersecurity. This very low representation of technology skills at the board is a warning that change is required. Is the composition of your board what it should be? http://www.equilar.com/blogs/241-hundreds-of-companies-disclose-board-skills-matrices.html