Global economic volatility, supply chain disruptions, cyber security, regulatory risks and a tight talent market are among the challenges set to test boards and their governance processes this year.
The business and risk environment has changed dramatically in the last 12 months, with greater geopolitical instability, surging inflation, and the prospect of a global recession added to the macro-economic risks companies are set to face in 2023. We’re seeing increasing complexity as risks unfold simultaneously. And, the interconnectedness of these risks will up the ante for boards to have holistic risk management and oversight processes.
In this volatile operating environment, demands for more transparency and disclosure will continue to intensify –particularly around cyber security, climate, and other environmental, social and governance (ESG) risks.
Nine issues for boards to keep in mind for 2023
Drawing on our latest survey insights and interactions with directors and business leaders, our report On the board agenda observes nine issues for boards to keep in mind as they consider their 2023 agendas:
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Remain focused on how the organisation is addressing geopolitical and economic risks and uncertainty.
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Monitor management’s projects to build and maintain supply chain resilience.
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Reassess board level committee structure and risk oversight responsibilities.
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Keep ESG embedded in risk and strategy discussions and monitor global regulatory developments.
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Have a clear strategy for when the CEO should speak out on social issues.
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Govern cyber security, data privacy and artificial intelligence holistically.
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Prioritise talent, human capital management and CEO succession.
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Engage with shareholders, activists and other stakeholders proactively.
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Think strategically about talent, expertise and board diversity.
