What do corporate board directors see on the horizon?
Expanding Roles, Risks and Opportunities for Boards in Another Disruptive Year
What’s in this report from BDO:
Another year of disruption and economic headwinds means formidable challenges for public company boards — but it has also opened new realms of opportunity for directors willing to adapt. BDO latest survey elicits timely feedback from directors, who are in the thick of things, to share evolving governance concerns and insight helping shape boardroom operations for dynamic times.
Here are a few of the key findings:
- Some directors don’t recognize ESG risk materiality…yet. While almost two-thirds of directors say ESG matters pose minimal risk in 2023, more than half say natural disasters, public health crises, data breaches and talent shortages pose some or significant risk.
- Boards say they could be playing a deeper role in human capital strategy. More than half of directors surveyed say they could be more impactful in oversight of management in this area.
- Investments in cybersecurity will rise in 2023 as investments in headcount and M&A decrease.
- Board diversity is expected to remain in the spotlight. More than two-thirds of directors believe shareholders will focus on board diversity in the 2023 proxy season.