Feature
PRACTICE
The diversity business Risk managers can help organisations make their diversity and inclusion programmes pay real-world dividends BY IVANA VASIC
T
he geopolitical and economic uncertainty that has so far characterised the 21st century continues to throw up surprises. The organisations that will thrive in the coming decades are those that are agile enough to adjust to quick and broad societal change, including the increasing imperative to make their organisations reflect the diversity of society. Failing to take measures to improve diversity and inclusion in an organisation is a risk – as is failing to do so well – and risk managers can play a pivotal role in supporting these complex cultural change efforts. While one could always argue about the relationship between cause and effect, it is undeniable that successful diversity and inclusion efforts in companies are correlated with better business performance. Research by the consultant BCG shows that diversity minimises group think, boosts innovation, improves resilience in uncertainty and is a predictor of company growth because companies with diverse leadership more frequently launch new products and services. Martine Ferland, president and chief executive officer of the global HR consulting firm Mercer, recently said that when at least one woman was on the sales team at her business, the overall win rate increased by 28 per cent compared with all-male teams. In addition, a high level of diversity in boards’ skills, knowledge and experience results in better
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Successful diversity and inclusion efforts in companies are correlated with better business performance
Enterprise Risk
