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Strategic Role Of The Director Flashcards

1
Q

What are the key stages within the strategic planning process?

A
  1. Setting goals
  2. Developing ways to achieve them
  3. Monitoring progress
  4. Adjusting strategies as needed
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2
Q

What is the definition of strategy?

A

The process of selecting goals and developing ways to achieve them long-term, often under uncertainty.

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3
Q

What is the purpose of an organisation’s mission statement?

A

To describe the work the organisation does and help make strategic choices.

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4
Q

What does VUCA stand for?

A

Volatility, Uncertainty, Complexity, Ambiguity.

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5
Q

What is a strategic plan?

A

A document that describes the long-term direction of an organisation, including what and how it will do.

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6
Q

How long is the typical time horizon for a strategic plan?

A

3-5 years, reviewed annually.

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7
Q

What is the main focus of a business plan?

A

To outline actions to implement the strategic plan, including forecasts and budgets.

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8
Q

True or False: Operational plans are the same as strategic plans.

A

False.

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9
Q

What must be aligned with the strategic plan?

A

The budget.

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10
Q

What is the ultimate responsibility of the board regarding strategy?

A

To ensure the organisation has an appropriate strategy.

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11
Q

What is the role of the board in developing strategies?

A

To develop strategies in combination with executives, ensuring a mix of skills.

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12
Q

Fill in the blank: The strategic planning cycle includes __________.

A

formulation, implementation, monitoring, and intervention.

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13
Q

What does SWOT analysis help identify?

A

Strengths, Weaknesses, Opportunities, Threats.

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14
Q

What is the purpose of a vision statement?

A

To describe the future state of the organisation and inspire stakeholders.

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15
Q

What are the key deliverables during the strategic plan period known as?

A

Strategic intent.

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16
Q

What is Ansoff Matrix used for?

A

To analyze growth strategies.

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17
Q

How can pricing strategy assist an organisation?

A

By gaining or defending market share.

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18
Q

What are KPIs?

A

Key Performance Indicators used to measure performance.

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19
Q

What is the difference between lead and lag measures in KPIs?

A

Lead measures predict future performance, while lag measures reflect past performance.

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20
Q

What is strategic risk?

A

Risks that could prevent the organisation from achieving its strategic goals.

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21
Q

What are some examples of strategic risks?

A
  • Competitive risk
  • Change risk
  • Regulatory risk
  • Reputational risk
  • Political risk
  • Governance risk
  • Financial risk
  • Economic risk
  • Operational risk
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22
Q

What are common reasons strategies fail?

A
  • Not understanding the problem
  • Not understanding the organisation’s capabilities
  • Not understanding the immovable pressures
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23
Q

What is a balanced scorecard?

A

A management tool that provides a holistic approach to growth and ensures alignment between mission and execution.

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24
Q

What should be included in the monitoring of a strategic plan?

A

Indicators of current and future performance.

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25
What is the significance of intervention in the strategic planning process?
To address exceptions in performance immediately rather than waiting for annual reviews.
26
What is the relationship between the strategic plan and the business plans?
The business plans support and implement the strategic plan.
27
True or False: The board should remain passive in the strategic planning process.
False.
28
What role does the board play in monitoring the strategic plan?
The board must monitor the strategic plan using the KPIs set during the formulation stage.
29
What is a common reason strategies fail related to understanding problems?
Not understanding the problem ## Footnote Issues with differentiation might not be just a product development problem, but also a positioning problem.
30
What is a common reason strategies fail concerning organizational capabilities?
Not understanding the organization’s capabilities ## Footnote Most organizations don’t consistently practice strategy development.
31
What is a common reason strategies fail related to operational pressures?
Not understanding the immovable pressures ## Footnote 76% of employees spend less than three hours per week on strategic work.
32
What is a common reason strategies fail regarding the cultural landscape?
Not understanding the cultural landscape ## Footnote An organization’s historical conditions provide guidelines for judging new strategic plans.
33
What is the Green Line in strategic planning?
Boards must ensure aspects above and below the green line are considered to achieve the strategic plan.
34
List the five key culture questions for boards.
* Does the board provide clear direction regarding culture? * Does the board monitor the culture and CEO's contribution? * Are structures, policies, and practices supporting the desired culture? * Does the board have access to reliable data to assess the culture? * Are the current cultural values the best for the organization?
35
What are the four steps in the strategic planning cycle?
* Formulation * Approval * Implementation * Review
36
What does the board ensure in relation to the strategic plan?
The board ensures that value is created for stakeholders through the strategic plan.
37
What is the PESTELED framework?
A framework that includes political, economic, social-cultural, technological, environmental, legal, ethical, and demographic factors.
38
What are Porter's Five Forces?
* Rivalry among existing industry participants * Bargaining power of customers * Threat of new entrants * Bargaining power of suppliers * Threat of substitute products or services.
39
Define risk according to ISO.
The effect of uncertainty on objectives.
40
What is risk appetite?
The amount of risk the organization is willing to accept in achieving its goals.
41
Differentiate between inherent risk and residual risk.
* Inherent risk: identified but not treated * Residual risk: identified and treated, but some risk remains.
42
What is a risk profile?
An organization's risk profile fluctuates according to changes in the environment.
43
What are the components of an International Risk Management Framework?
* Integrated * Structured and comprehensive * Customized * Inclusive * Dynamic * Best available information * Human and cultural factors * Continual improvement.
44
How should boards engage with management to discover risks?
Through discussions to identify risks and create a process for managing them.
45
What is the role of directors in establishing risk appetite?
Directors should establish and regularly revisit the risk appetite of the board.
46
What is risk velocity?
How quickly one goes from the onset of the risk to the impact of the risk.
47
What is the significance of a reporting culture?
It encourages people to report errors and unsafe conditions.
48
What factors influence organizational risk cycles?
* Size of the organization * Financial health * Stage of maturation * Competition * Changing regulatory environment * Nature of the decision * Industry's speed of change * State of the economy.
49
Fill in the blank: The board must ensure strategy is aligned with the organization’s _______.
[risk appetite]
50
What are the two cycles most organizations have?
A short-term or annual cycle and a longer-term strategic cycle of 5 years.
51
What is RISK CULTURE?
The environment and practices within an organization that influence the way risks are perceived and addressed.
52
What is the role of leadership in building a REPORTING culture?
To create an environment where people report errors, unsafe conditions, and other concerns.
53
What should directors and the board set regarding reporting?
Reporting parameters.
54
What is essential for a whistleblowing system?
It needs to protect the reporter.
55
True or False: Blame should be attached to reporting in a JUST culture.
False.
56
What does a THINKING & LEARNING culture encourage?
Encourages thinking about new technologies and business models.
57
What should a FLEXIBLE culture in risk management do?
Vary depending on urgency and changed circumstances.
58
What should directors and boards be mindful of in a RISK-AWARE culture?
They should be mindful but not afraid of risk.
59
What is the relationship between ethics and risk in an ETHICAL culture?
Ethics must be considered on its risk framework.
60
What is essential in communication regarding risk culture?
It must be linked to the organization’s vision, purpose, values, and code of conduct/ethics.
61
What does the ISO 2018 Risk Management Guidelines emphasize about communication?
It emphasizes bringing different areas of expertise together and ensuring inclusiveness.
62
Fill in the blank: The step of _______ involves identifying risks by various methods.
risk identification
63
What are the components of risk assessment?
* Risk identification * Risk analysis * Risk evaluation
64
What is the purpose of monitoring and review in risk management?
To establish monitoring and reporting systems in all stages of the risk management process.
65
What are personal risks for Directors?
* Inability or lack of skills * Reputation * Defamation * Secrets and surprises from the board * Board dysfunctionality * Conflicts of interest
66
What is the first step in Business Continuity Planning (BCP)?
Understanding the areas of business vulnerability.
67
What is a key aspect of crisis management?
Having a plan.
68
What should be included in a crisis management communication strategy?
* Identify a spokesperson * Be honest and open * Keep employees informed
69
What is important for managing both types of risk?
* Undertaking due diligence * Understanding risk terms * Developing risk appetite
70
What should directors ensure regarding the risk management plan?
An effective assurance process is in place.
71
What does avoiding complacency around business continuity planning imply?
Regularly reviewing and testing the plans.
72
Fill in the blank: The ISO 22301 standard provides guidance on establishing a ______.
business continuity system

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