Top executives and board members appear to have some very specific concerns. A new survey showed that concerns about reputation are more important to many U.S. corporate board members than even financial performance.
In fact, during an event, such as a crisis or scandal, 55 percent of board members and top executives are most concerned about damage to their company’s reputation.
In addition, 64 percent of respondents said that ensuring a uniform approach to managing risk becomes more difficult because of cultural differences found across an organization's global operations. Also, 82 percent of U.S. respondents said more time has been invested in risk management by their companies' boards during the past two years, with 86 percent reporting their companies are much better equipped to address the principal risks facing their industries. Some 92 percent said their boards have appointed, or will appoint within two years, non-executive directors with expertise in dealing with specific risks facing their organizations.
Due to commercial, legal and reputational risks, more than 60 percent of U.S. respondents said their companies were concerned about an incident or scandal arising from sanctions or restrictions on trade. Also, the Foreign Corrupt Practices Act (FCPA) posed similar risks.