Midyear observations on the 2026 board agenda

Low visibility, persistent uncertainty, and heightened volatility continue to define the global business environment. In the months since we published On the 2026 board agenda, the convergence of macro risks and business challenges has become more evident, and more urgent, in boardroom conversations.

Economic fragility, geopolitical fragmentation, accelerating artificial intelligence (AI) deployment, rapid tariff and regulatory changes, cybersecurity threats, and workforce transformation are interacting and amplifying one another in significant ways. The Iran conflict has deepened this complexity, reshaping geopolitical and market assumptions across sectors. The resulting energy supply shock also serves as a reminder to stay focused on other critical choke points across a company’s operating environment (e.g., access to key commodities/materials, capital and liquidity, supplier concentration, cybersecurity breaches, and availability of labor).

Some of this is heavy turbulence to be weathered, but deeper, structural change is also unfolding. Not surprisingly, 80 percent of directors we surveyed recently said their company’s strategy will likely require a significant adjustment in the next 1-2 years.¹

For boards, the implication is clear: Macro uncertainty and change have become a full-on governance issue, not just a management challenge. Context, experience, and judgment—the distinct qualities directors bring to the boardroom—will be vital to effective oversight and leadership in the months ahead.

Based on our ongoing work and discussions during the 2026 KPMG Board Leadership Conference, we offer insights and observations that may be helpful as boards calibrate their agendas for the second half of the year.

Footnote

¹ Based on responses from nearly 700 directors surveyed online by the KPMG BLC in March-April 2026.