The board approach to emerging technology risk and opportunity

Digital technologies are dramatically changing the business landscape–impacting operations, redefining relationships with customers and other stakeholders, shifting business models, and introducing new competitors. And business leaders are acutely aware of what’s at stake: CEOs surveyed for KPMG LLP’s 2019 U.S. CEO Outlook cited emerging and disruptive technology as the top risk to growth.

Similarly, the board approach to emerging technology risk and opportunity should be equally broad. There are strategy questions to pose and operational challenges to assess, not to mention oversight of risks that are growing exponentially around cyber security and data usage. For many companies, the discussion around technology and the future of the business are one-in-the-same. For others, the implementation of new technologies is specific to customer satisfaction and greater efficiency.

How the board can understand and help shape the technology conversation was the focus of our recent Board Leadership Center Webcast featuring Dr. Cheemin Bo-Linn, president and CEO at Peritus Partners and corporate director at BMC Stock Holdings, and Timothy Zanni, global and U.S. technology sector leader for KPMG LLP. In a conversation moderated by Dennis T. Whalen, Leader, KPMG Board Leadership Center, Bo-Linn and Zanni shared their observations from working with boards and management to evaluate today’s technology challenges.

What is your greatest concern regarding the company’s implementation of new technologies?*

• Having the leadership/talent to manage change – 35%
• Ensuring alignment with strategy – 22%
• Having confidence in the cyber security/IT risk assessment – 21%
• Ensuring effective data privacy and security – 18%
• Other – 4%

*Of 248 self-identified corporate directors, senior executives, and senior legal advisors on the September 12, 2019, KPMG Quarterly Board Leadership Webcast.

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