The 6 technology trends that show why business leaders must embrace risk

As a new Blue Ribbon Commission report suggests, today's greatest technology risk is not taking risks. Image: Shutterstock
- In a technological landscape evolving at breakneck speed, the greatest business risk is not taking risks.
- Business leaders should adopt a proactive stance on technology that balances innovation with accountability.
- A new report identifies six factors that shape technology governance today.
As technology changes at an unprecedented pace, boards are uniquely positioned to shape the opportunities and rules governing its use. Yet, given the promise of business reinvention and competitive advantage through technology and data, companies and their boards find themselves at a crossroads. How can they effectively govern technology use and build trust in an era where technology itself is rewriting the rules of strategy and raising business expectations?
The tendency towards technology risk aversion is real for boards and management teams already fatigued by a range of macropolitical, economic, and societal challenges and expectations. But as NACD highlights in its new Blue Ribbon Commission report, Technology Leadership in the Boardroom: Driving Trust and Value, today's greatest technology risk is not taking risks.
Directors should adopt a proactive mindset that balances the need for innovation with strengthened accountability, ensuring that the technology of today and the future serves both the organization and its stakeholders. By aligning their governance practices with these demands, boards can become trusted, competitive stewards in a rapidly changing landscape.
Six major forces facing boards today
Indeed, technology discussions have been part of boardroom agendas over the past few decades, but a confluence of forces is creating urgency in boardrooms today. The new report reflects the expertise of 24 governance leaders, investors and experts in the field, representing more than 70 boards. Their insights, along with NACD research, concluded that six interrelated trends are driving a new focus on technology governance:

None of these factors is simple, nor does any exist in a vacuum. Today’s business and economic landscape makes these challenges even more complex for management and boards alike. They must effectively execute technology-driven opportunities while mitigating their risks.
Proactive leadership’s dual mandate
In many ways, boards are being asked to confront these challenges by enacting a dual mandate: Move fast and bold while acting as a guardrail by exercising critical judgement in upholding corporate values and protecting stakeholder interests.
Effective technology governance requires building capabilities and leadership in three key areas: oversight, insight, and foresight. Focusing on each will help board directors fulfil their fiduciary duty and set an example for other leaders who must intelligently govern technology.
Strengthening board oversight will help directors to better align with organizational values, reinforcing their value and role as thoughtful advisors and an authority. This involves:
- Establishing ethical guidelines. Boards should take the lead in ensuring management sets ethical principles for technology development and use. This includes addressing issues like data privacy, algorithmic bias and sustainability.
- Engaging stakeholders. Transparent communication with stakeholders such as employees, customers, and investors is critical. Boards must guide management in actively understanding stakeholders’ concerns and expectations regarding technology use. This helps align the company’s innovation strategy with stakeholder values, reinforcing trust and accountability.
Deepening insight will require boards to develop a more robust understanding of complex new technologies and their effective use across the organization. In fact, research shows that the lack of technology expertise in the boardroom is among the top five barriers that directors say undermine effective oversight. The need for directors to upskill and reskill – and embrace humility as they evaluate their own knowledge – is essential for engaging in richer, context-driven conversations about opportunities and risks. Board-level solutions must be intentional and proactive, including:
- Promoting continuous learning. Encourage board members to improve their knowledge of emerging technologies and governance best practices. This could involve attending workshops, participating in industry conferences, or collaborating with experts to deepen their understanding of complex issues.
- Embracing a learning environment. Boards and management will need to agree on what technology proficiency means and how it is attained in the context of business strategy. This means supporting training programmes for management and staff to enhance their knowledge and critical thinking skills. By investing in the development of their people, boards can ensure organizations remain agile and well-prepared for future challenges.
Boards must finally cultivate the ability to foster foresight by anticipating future challenges and opportunities, ensuring they proactively engage with the business in an evolving landscape. This involves not only recognizing emerging trends, but also understanding their potential impact on the organization:
- Championing strategic risk-taking. Boards must recognize technology as a core element to long-term strategy and cultivate a culture that encourages calculated risks. By endorsing new innovation bets, they will empower management to explore new technology that could yield significant competitive advantages. This stance requires a willingness to embrace uncertainty and learn from successes and failures.
- Balancing agility with governance. While speed is essential, boards must establish governance frameworks without stifling creativity. Developing these flexible structures allows for rapid decision-making while ensuring accountability. This includes setting clear parameters for technology investments and innovation initiatives, fostering an environment where teams can experiment and iterate effectively, and enabling exploratory board and management dialogues.
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In this age of disruptive technologies, data-driven innovation is central to companies’ growth strategies, and the need for engaged technology governance has never been more pressing. It’s time for boards to embrace this challenge and actively drive technology governance to ensure their organizations thrive in an evolving world. The future of all organizations depends on it.
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Leila Toplic
February 6, 2025