Heading into 2024, companies face unprecedented disruption and uncertainty – wars in Ukraine and the Middle East, trade and geopolitical tensions, economic volatility, persistent inflation and higher interest rates, technology and business model disruption, elevated cyber security risk, climate risk, and more. Advances in artificial intelligence (AI) and heightened regulation will add to the challenge.
In this volatile operating environment, demands – from investors, regulators, employees, and other stakeholders – for greater disclosure and transparency, particularly around the oversight and management of risks to the company’s operations and strategy, will continue to intensify. The pressure on management, boards, and governance will be significant.
Drawing on insights from our latest survey work and interactions with directors and business leaders, we highlight eight issues to keep in mind as boards consider and carry out their 2024 agendas:
- Link boardroom discussions on strategy, risk, and global disruption
- Monitor efforts to design and maintain a governance structure for the development and use of generative AI.
- Maintain focus on cyber security and data privacy.
- Embed the company’s strategically significant climate and other ESG issues in risk and strategy discussions.
- Keep abreast of management’s preparations for new climate and sustainability reporting requirements.
- Enhance communication and coordination among the board and its committees.
- Make talent, Human Capital Management (HCM), and succession planning a priority.
- Think strategically about talent, expertise, and diversity in the boardroom.
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About the Board Leadership Center
KPMG’s Board Leadership Center (BLC) offers non-executive and executive board members – and those working closely with them – a place within a community of board-level peers. Through an array of insights, perspectives and events – including topical seminars and more technical Board Academy sessions – the BLC promotes continuous education around the critical issues driving board agendas.
