How board members can manage risk and complexity to drive success

In this episode of The Better Finance podcast, speakers explore the board member’s role in risk management and company structure, and the impact of AI and technology on organizational challenges.

Host Myles Corson speaks with Jan Babiak, an independent board member and audit committee chair with extensive experience across various sectors and countries. The discussion begins with Jan's recognition as one of the top 20 value-adding directors in the US. Her career journey is then explored, from her early days at the EY organization to becoming a seasoned board member. Jan has experience in areas, such as IT security, cybersecurity, regulatory and public policy, and climate change and sustainability.

Jan emphasizes the importance of boards managing not just routine business risk strategies, but also being prepared for unexpected events and future challenges. She highlights the differences in risk management responsibilities and resources between public and private companies, noting that private companies may not have the same infrastructure and may need to be more agile in their approach.

The conversation also touches on the influence of organizational structures on risk management, the impact of founder culture on private companies, and the challenges of balancing growth opportunities with risk mitigation. Jan shares her insights on the evolving risks associated with technology, particularly artificial intelligence (AI), and the need for businesses to be aware of the potential misuse of such technologies.

Myles and Jan discuss the similarities and differences in board membership across various countries, with Jan noting that while the day-to-day work is largely similar, governance models and regulations can differ significantly. She also offers advice to aspiring board members, stressing the need for intentionality, breadth of experience and openness to serving on different types of boards.

Key takeaways:

  • Understand the multifaceted role of board members in overseeing risks within organizations
  • Gain insights into how different company structures, such as private equity and family-owned businesses, can influence risk management strategies
  • Learn about the importance of board members staying informed and proactive in the face of emerging technological risks, especially those related to AI

For your convenience, full text transcript of this podcast is also available.


Podcast

Season 7, Episode 1

Duration

0h 31m 46s