The road ahead for companies in 2016 will be particularly challenging given the level of global volatility and uncertainty—e.g., the geopolitical environment, commodity prices, interest rates, currency fluctuations, slowing growth in emerging markets—as well as technology advances disrupting established industries and business models. In this environment, the spotlight on corporate directors will continue to intensify as investors and regulators scrutinize the board’s involvement in strategy, risk, and compliance. Drawing on insights from interactions with directors and business leaders over the past year, here are six items for boards to keep in mind as they consider and carry out their 2016 agendas.
Given global volatility and uncertainty—and the forces disrupting corporate business models and entire industries—the board’s traditional “review and concur” role in strategy is no longer adequate. Addressing these uncertainties and market forces requires a new level of board engagement in strategy, working closely with management in a “continuous process.
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