Baker Tilly and the National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 20,000 board members, released the 2020 Governance Outlook: Projections on Emerging Board Matters, featuring Baker Tilly’s 2020 Strategic Risks for Boards. The outlook serves as an annual roadmap to guide corporate directors and senior executives as they tackle business and governance risks and issues throughout 2020.
Baker Tilly’s 2020 Strategic Risks for Boards focuses on critical disruptive forces and risks affecting boards and organizations including:
Boards must tackle an increasingly complex set of disruptive risks–both domestically and internationally–which are reshaping the world in which they do business. Effective board directors provide proactive guidance and demonstrate meaningful oversight in the face of an accelerated pace of change, innovation and disruption within and outside of their organization.
The report also highlights NACD survey findings on the top board priorities for 2020 and highlights issues related to preparing for the next recession, regulatory changes, legal risks, board composition, the digital frontier and other topics.
NACD and Baker Tilly hosted a board-level discussion on The Power of Privacy: The Board’s Role in Privacy Oversight. The discussion involved understanding the current privacy regulatory environment and emerging risks that can affect oversight. Boards hold a significant role in ensuring management takes a risk-based approach to protect, respond to and address a widening list of data privacy regulations and requirements. The blog below provides a summary of the discussion and highlights the importance of using a comprehensive data privacy program to assist the board in privacy oversight.
To stay competitive and relevant in a rapidly changing business landscape, organizations in every industry must navigate an increasingly disruptive, technology-enabled environment. Companies that do not address and embrace new and emerging technologies will be less competitive or may even face obsolescence. Advanced digital technologies bring with them both opportunities and challenges for boards. Boards must become knowledgeable about these digital disruption trends in order to be able to conduct meaningful oversight that management can use successfully as the company embraces new technologies.
In order to stay ahead of enterprise risks, directors should ask management questions that illuminate gaps in strategy. Boards can enable organizations to gain an edge through a sometimes overlooked area: the intersection of strategy and enterprise risk management (ERM). The integration of ERM and strategy enables enterprise risks to be identified in the context of your strategic plan. It also allows strategic execution to consider the potential impacts of enterprise risks.