ABI: Gender diversity can improve risk management

Risk management, bureau reporting and regulatory processes are mounting concerns for business leaders, executives and board members. How exactly to rein in such obstacles has become a defining goal of contemporary business relations. While a number of ideas have been proposed, a new report from the Association of British Insurers argues that greater gender diversity in management and directorial positions can help mitigate risk, encourage strategic debate and help organizations focus on longer term objectives. "Board members with diverse perspectives are more likely to challenge previously held assumptions and break down the tendency toward 'group think' that can arise where a board is composed solely of like-minded individuals," the report said, according to Bloomberg BusinessWeek. "Overall, women remain poorly represented in corporate boardrooms." In the U.K., the proportion of women in board positions at the largest 100 companies is less less than 15 percent, up slightly from 13.4 percent last year. The ABI asserted that boards with a more balanced gender makeup pay more attention to audits, risk oversight and control.