2020 Directors’ Alert
Reimagining governance and oversight amid digital disruption
Digital transformation brings about new strategic, ethical, cultural, reputational, reporting, talent, and conduct risks, to name just a few. With these come a burst of opportunities and challenges. How can the board and the organization that they oversee innovate to embrace the benefits and mitigate the risks associated with digital disruption? Find out in this edition of Directors’ Alert.
Explore this year's emerging areas of focus for boards
While we focus on the disruptive forces that cognitive technologies and intelligent automation have unleashed within the business environment in our 2020 Directors’ Alert, it would be a mistake to see this primarily as a technology issue. It’s bigger than that. It goes beyond the organization to impact not only each and every stakeholder, but the entire marketplace, society, and global community.
This edition challenges boards to stretch their imagination and consider ways in which their organization is using digital and cognitive technologies, and assess whether risks have been assessed and mitigated—and that all opportunities have been seized.
This edition of the Alert features viewpoints of three independent non-executive directors and Deloitte business leaders from across the globe on:
- Rethinking risk governance around intelligent automation
- Reassessing culture, conduct, and reputation in the digital age
- Redefining financial reporting and audits
Reimagine—foresight around digital disruption begins with the board.
Look before leaping (into the future)
Reassessing culture, conduct, and reputation in the digital age
The rise of the smart machine
Rethinking risk governance around intelligent automation
The finance function and the audit of the future
Redefining technology usage for financial reporting and audits
The rise of the smart machine
Rethinking risk governance around intelligent automation
AI technologies can take an organization into uncharted waters. Many board members may initially find AI mysterious or intimidating, but the fundamentals of risk governance and management oversight generally apply. The opportunities are as real as the risks, and the board is ultimately responsible for overseeing that management has identified and addressed both. Is your board equipped to oversee AI?
Look before leaping (into the future)
Reassessing culture, conduct, and reputation in the digital age
In a blink of an eye, digital disruption can transform an organization into something different and possibly unfamiliar. This calls for the board to look toward the horizon and pay close scrutiny of the course management has chosen. Both entail overseeing risks and clarifying opportunities that may escape management’s attention, including those related to culture, conduct, and reputation. Each of these factors can be profoundly influenced by digital transformation or even a single intelligent automation initiative. Is your board ready to break down these barriers and oversee true digital transformation?
The finance function and the audit of the future
Redefining technology usage for financial reporting and audits
Accounting and finance functions are adapting advanced and cognitive technologies to support their expanding role in developing and tracking key performance and risk indicators, analyzing risks, and assisting management achieve organizational goals – all in addition to financial reporting responsibilities. While the benefits are many, so are the risks. Is your organization prepared?
Tax strategy for the long term
Is your organization getting it right?
Once considered just another part—and cost—of doing business, tax has become a high-priority agenda item for both the C-suite and the board. Tax strategy and its related technology, administrative, and risk management infrastructure must now be reviewed more frequently, in greater detail, and at higher levels of the organization than in the past. Considering the long-term impact that tax strategies and policies can have on an organization, proactive engagement by the board is clearly warranted.
To read more, visit our Global Center for Corporate Governance to download the 2019 Directors’ Alert
A unique perspective
Look before leaping (into the future)
"As the ultimate overseers of the organization, the board must be aware of the potential for cognitive technologies to disrupt culture, shape conduct, and affect reputation."
Can IoT enable continuous auditing?
"Both external and internal auditors will need additional skills and expertise. The audit committee should keep abreast of these needs and how they are being met, as part of their oversight duties"
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