Directors must rethink how they assess unforeseen risks that could imperil companies.
Board members spend most of their time looking backward, but in today's disruptive business environment it's imperative directors also spend time looking at "what's coming at us," says Kelvin Westbrook, director at Archer Daniels Midland Co., Camden Property Trust, Mosaic and T-Mobile.
When it comes to assessing disruptive risks --risk that can impact a company's bottom line, reputation, etc.--directors should "look at how the agenda is set up and how time is allocated," Westbrook says. "If you find yourself having to set up a special meeting once or twice a year, so be it."
It's all about being proactive and trying to unearth the risks you don't know, says Westbrook, who...