By Elizabeth Lynch
Linking boardroom conversations on strategy, risk, and global disruption and understanding how stakeholder expectations are influencing long-term strategy will be critical for boards as they help their companies navigate the year ahead, according to new reports from KPMG's Board Leadership Center.
Drawing on insights from the BLC’s ongoing work and interactions with corporate directors and business leaders, two publications – On the 2020 board agenda and On the 2020 audit committee agenda – spotlight areas to keep high on board agendas throughout the coming year.
“Front-page headlines on trade wars, Brexit, and geopolitics are front and center in the boardroom requiring more scenario planning and stress testing before strategic decisions are made,” said Dennis. T. Whalen, leader of the BLC. The report outlines eight areas, ranging from geopolitics to culture for the board’s attention. “Robust scenario planning will be critical.”
To maintain its primary focus on financial reporting and audit quality, audit committees need to manage their agendas, noted John Rodi, leader of KPMG’s Audit Committee Institute, which suggests seven items audit committees should address. “As the risks that audit committees oversee become more complex, committees should reassess their agendas to help ensure new items don’t overwhelm their capacity to handle them.”
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