Navigating 2025's Complex Landscape for Boards and Audit Committees

Boards and audit committees will need to steer their organizations through complex challenges in 2025—escalating geopolitical conflicts, economic uncertainties, rapid technological advancements and the new administration’s policy positions.

To help them shape their agenda for the year to come and beyond, the KPMG Board Leadership Center's "On the 2025 Agenda" series of reports highlights crucial topics for discussion.

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Read more: On the 2025 Board Agenda

Read more: On the 2025 Audit Committee Agenda

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"Boards will have their oversight and corporate governance processes put to the test in 2025, as companies confront unprecedented disruption and uncertainty,” said KPMG Board Leadership Center Co-leader John Rodi. “The policies of the new administration, along with ongoing global conflicts and economic tensions, will shape the business and risk landscape.”

Maintaining the focus on financial reporting and internal control risks remains job number one for audit committees.

“Audit quality remains a cornerstone,” said Anne Zavarella, Co-Leader of the Board Leadership Center. “Audit committees should assess whether they possesses the necessary leadership, composition, and time allocation to effectively fulfill its core oversight responsibilities, while also addressing the expanding range and intricacy of other risks."

2025 likely will bring major tax legislation, and tax policy should be front and center on agendas given the potential impacts on cash flow, investment, and the business landscape.

As demands for transparency and high-quality disclosures related to oversight on climate change, AI integration, and cybersecurity rise, both boards and audit committees need an ever-deeper understanding of management’s risk assessment and strategic planning to help ensure resilience and continuity in business operations.

The rapid advancements in artificial intelligence will pose opportunities and challenges, requiring boards to understand the company’s AI strategy and how it is aligned with business goals, while monitoring risks related to data quality, cybersecurity, and compliance with new regulations.

CEO succession planning, talent development, and corporate culture will also need to be front-and-center. And effective communication with stakeholders, an increased focus on transparency and enhanced disclosure practices will be essential to navigating the complexities of 2025 and enabling boards to maintain strong oversight.

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