Since the last edition of the Directors’ Toolkit in 2020, there have been radical changes in governance landscape as an outcome from events such as the COVID-19 pandemic, catastrophic weather events, war in eastern Europe, Royal Commissions into Aged Care Quality and Safety, modern slavery, fraud, significant cyber-attacks and inquiries into multiple casino operators. When such events occur all eyes turn to the board.
The role of the board has become more complex and challenging than ever before. ESG considerations are now at the front of mind for all directors. With the availability of information and the prominence of social media, a far broader group of stakeholders are looking to boards to ensure ESG expectations are being met. It is the board who will set policy and the 'tone from the top' that will ultimately determine whether the company that they have oversight over is judged to be successful, or not, when compared against increasing ESG expectations. Accordingly, the board represents the "G" in ESG.
6th edition of The Directors’ Toolkit
This edition of The Directors’ Toolkit is intended to provide the necessary resources to support directors to successfully navigate the risks and opportunities in this new era of governance across the following sections:
- The role of boards and directors
- Governance accountability
- Governance leadership
- Governance oversight.
The toolkit continues to include the useful red flags as well as a list of pertinent questions that directors should ask to prompt relevant discussions on, and ensure better governance of, the critical issues impacting their organisation.
Hot topics for directors
In this latest edition, we have updated existing sections, and created new sections.
Developments in ESG
In particular what the ‘G’ in ESG requires of boards and their directors.
Cyber
How the board can be comfortable with cyber security, a consistent strategic risk for all organisations, whilst major incidents are increasingly commonplace.
Indigenous governance
To focus on the role the board can play in creating policies and culture which not only advance reconciliation and pay respect to First Nations people, but also increase economic equity.
Tax governance
Key role of the board in both managing tax risk but also aligning the approach to tax with stakeholder expectations.
How KPMG can help
KPMG’s Governance & Board Advisory team can help boards establish and mature their governance structures and processes as well as to perform board and individual director performance assessments and board composition assessments.
If you have any questions please contact Caron Sugars.
