Final thoughts: an exeCutive Challenge
ere is, however, an important challenge the executive suite
must address. Managing in the twenty-rst century requires new
approaches than used in the past. e dynamic and ever-changing
global business landscape requires companies to be agile, exible, and
aware of emerging issues, from outside as well as within its business
enterprise. Otherwise, unforeseen events can quickly turn a prot-
able and competitively successful company into a potential disaster.
Remember the 2012 JP Morgan London Whale trading scandal that
resulted in 6.2 billion dollar trading loss and 920 million in penal-
True, JP Morgan has a set of products and services that pro-
vide signicant revenues. However, aws in governance and oversight
processes did not provide early warning of a potential trading issue.
Herein lie the gap and the challenge for the executive suite. is event
led many executives in the C-suite to begin conversations regarding
the aws in key processes throughout their companies that often go
awry. e London Whale event is an extreme example. However, each
and every day, executives, managers, and personnel throughout your
business enterprise make decisions, approve decisions, or are aware of
decisions made by others. ese decisions would be made dierently
if management and personnel had an early warning system to advise
them of the potential pitfalls and associated risks based upon dierent
Today’s global business environment is more complex than ever
before. is is due to the following three paradigm shifts in the com-
petitive marketplace, each causing a governance chasm for the busi-
• Expanding global marketplace requires constant vigilance to
uncover competitive opportunities and threats.
• Consumerization of IT results in customers demanding new
digital products and services that IT organizations need to
develop quickly and cost-eectively.
• Changing organization models composed of virtual teams
making complex business decisions replaces the traditional
vertical and hierarchical structures.