The approach to corporate risks is a growing concern within corporate governance. Excessive attention to compliance and too much focus on financial risk is a risk in itself. There are several categories of strategic risks, which can collapse or seriously harm organisations, stressing the importance of addressing the risk subject in a multidisciplinary and systemic way. The current pandemic effort illustrates how human organisations, even States, are not well prepared to deal with risk. A holistic approach backed by business policy principles, ensures better identification and management of potential risks. Starting with risk taxonomy helps in classifying several relevant categories, increasing awareness and visibility of critical areas, and helping to steer efforts towards a better approach to them.
Current approaches to corporate governance suggest that a normative approach, while necessary, is not sufficient for effective risk governance. A prudential and multidisciplinary approach is needed. The issue of risk appears to have been overlooked in many situations, from missed opportunities to innovate, when faced with technological change,
