Digital transformation is disrupting entrenched incumbents and even whole industries as the pace of change impacts the performance of traditional business models for creating value. For innovation to reach its full potential in the digital age, a culture that emphasizes innovation must also encourage diversity, collaboration, empowerment, continuous learning, ingenuity, change enablement and team performance. Organizations need to measure and reward innovation so that it becomes a core competency that drives priority-setting, resource allocation, talent acquisition, etc. This issue of Board Perspectives: Risk Oversight describes how an organization can reach its innovation potential and questions the board should ask themselves.