In 2023, Boards can expect their oversight and corporate governance processes to be put to the test by a range of challenges – including global economic volatility, supply chain disruptions, cybersecurity risks/ransomware attacks, regulatory and enforcement risks, and social risks, including pay equity and the tight talent market.
The business and risk environment has changed dramatically over the past year, with greater
geopolitical instability, surging inflation, and the prospect of a global recession added to the mix of macroeconomic risks companies face in 2023. The increasing complexity and fusion of risks unfolding simultaneously, and the increased interconnectedness of these risks up the ante for boards to have holistic risk management and oversight processes.
In this volatile operating environment, demands from employees, regulators, investors, and other stakeholders for greater disclosure and transparency – particularly around cybersecurity, climate, and other environmental, social, and governance (ESG) risks – will continue to intensify.
Drawing on insights from our latest survey work and interactions with directors and business leaders, we highlight ten issues to keep in mind as boards consider and carry out their 2023 agendas.
Maintaining focus on addressing political andmacroeconomic risk
Heading into 2023, developments in supply chain disruptions, insecurity, fuel scarcity, upcoming general elections, recent CBN’s monetary policy on the introduction of new naira notes and reintroduction of the cashless policy, the possible policy reversal if ruling party fails to clinch the Presidential ticket, continued FX scarcity, cybersecurity, inflation, interest rates, market volatility, trade tensions, and the risk of a global recession – combined with the deterioration of international governance – will continue to drive local volatility and uncertainty.
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