On Thursday December 6, NACD members and Protiviti associates met for a Risk Management and Audit Committee Peer-to-Peer Lunchat Divino Ristorante in Belmont and discussed the risks related to Digital Transformation.
Protiviti’s thought leaders shared their perspectives on digital disruption risk, what companies should be considering as they develop or evaluate their digital strategy, and the questions Board members should be asking their management teams about digital risks.
Along with a presentation on Robotic Process Automation (RPA), the group also discussed the benefits and risks of RPA and the governance and oversight required to implement effective RPA programs.
Please select the Event Summary dropdown arrow below to review a recap of the meeting and to download the attached takeaway documents.
The NACD Northern California Chapter Risk Management and Audit Committee Peer-to-Peer Lunch was held in Belmont on December 6, 2018. Members discussed digital transformation’s impact on their organizations, as well as the potential risks digital transformation can deliver. Members also discussed robotic process automation (RPA) and the risks related to automating key business processes.
When asked, “What are your management teams telling you about their digital transformation efforts,” the members shared their perspectives:
Several management teams are focused on digital transformation, but the efforts are more tactical and related to aspects such as supply chain and inventory management.
One member wasn’t sure their management team had developed a coordinated digital strategy that focused on the customer, its operations, and using data to make better decisions.
Members also discussed the need to have a greater expertise at the board level related to digital transformation. Additional topics discussed included the following:
Some members have formed “innovation committees” at their companies to discuss digital transformation.
While cybersecurity remains top of mind for all members, they recognize the need to have broader risk-based discussions related to digital transformation.
Protiviti presented an overview of RPA and the risks related to a “rush to automation.” The members shared the following perspectives:
Their teams are intrigued by the concept of RPA but don’t know which process is a candidate to develop proof of concept.
Some members shared that their management teams have begun to automate certain processes, but that they need to understand how automation increases the risks to financial reporting.
They understand automation can improve efficiency, but wonder what that does to the culture. Will employees resist change and thereby increase risks at their companies?
As discussed during the session, we have a few handouts to share, as well as some new thought leadership pieces that we hope will prove helpful as you look forward to 2019.
Auditing Robontic Process Automation - download below
Digital Transformation - Are you ready? - download below