The Institute of Chartered Accountants in England and Wales (ICAEW) — a leading UK professional body for accountants and business leaders — recently interviewed Paul de Ruijter about how corporate boards are managing an increasingly diverse set of risks. From financial volatility to AI disruption and ESG challenges, Paul shares how boards can shift from compliance-driven risk management to strategic risk management.
From risk avoidance to strategic opportunity
Boards that treat risk only as a compliance issue risk missing out on strategic advantage. Risks are not just threats — they are opportunities to innovate, differentiate, and grow. This mindset moves organizations from a defensive to a forward-looking approach. Scenario planning, once optional, is now a vital tool for anticipating future developments and shaping decisions before crises occur.
Seeing the connections between risks
Corporate risks are increasingly interconnected. Financial, technological, environmental, and reputational issues influence each other and can escalate quickly. Successful boards look at the full picture instead of managing risks in isolation. They build resilience by coordinating their audit, risk, and remuneration committees and by ensuring that every decision considers both direct and indirect effects.
Complex challenges require diverse ways of thinking. Boards that combine expertise from finance, law, technology, and social sciences are better equipped to recognize blind spots and question assumptions. True governance strength comes from diversity of thought and a culture that encourages open dialogue rather than strict hierarchy.
Balancing risk and return
No organization can grow without taking some level of risk. While financial risks are often familiar, non-financial aspects such as sustainability, ethics, and culture are now just as decisive.
“There is no return without risk. So, you also need to be risk seeking.”
Resilient boards define their risk appetite clearly and align it with their purpose and long-term goals. By treating risk as a source of insight and opportunity, organizations can stay agile and future-focused. Those that prepare with foresight will lead; those that don’t will be left behind.
Discover more insights in the full ICAEW interview here: How are boards managing an increasingly varied set of risks?
