Risk taking in the enterprise is a constant topic of discussion. Harnessing disruptive technologies to achieve high-value returns requires CIOs to traverse uncharted technological waters, in other words, take risks.
In a recent Deloitte survey, 38 percent of CIOs said their business leaders’ attitudes towards risk is stopping them from making riskier technology investments. This kind of attitude toward change and risk is at polar opposition to the kind of advances being sought after by most companies in highly competitive environments.
Khalid Kark, research director, U.S. CIO Program, Deloitte & Touché LLP, recommends business leaders work together with their CIOs to encourage the right kind of risks. Here are three things Kark says business leaders can do to help their CIOs succeed:
- "Allow CIOs to manage a portfolio of technology investments with varying levels of risk, just like a mutual fund manager, and just like the stocks, some will pay out and others may not.
- CIOs should not, but often do, end up accepting risk on behalf of business leaders. Having a robust governance structure allows business leaders to define their organization’s risk appetite.
- Get CIOs involved in the strategic planning process of the organization. Many CIOs are able to make a huge impact because technology is embedded into the strategy and not tagged on as an afterthought.”
These may all work well as actionable steps for C-suite participants, but moving past the tendency to thwart CIOs’ efforts needs to come first.
