WASHINGTON, DC (DEC. 18, 2017) – The National Association of Corporate Directors (NACD), the authority on boardroom practices representing more than 18,000 board members, today released its 2018 Governance Outlook: Projections on Emerging Board Matters, a strategic roadmap to guide corporate directors and senior executives as they tackle tough issues in the year ahead.
The report lays out a comprehensive overview of major business and governance issues likely to demand board focus over the coming year, including a quantitative analysis of forward-looking trends and priorities for board improvement from NACD’s recent survey of public companies.
“In this era of disruption, conveying the leading practices for overcoming business challenges is more critical than ever,” said Peter Gleason, president and CEO of NACD. “This document taps into our unrivaled network of partners to provide critical guidance for CEOs, board directors, and other business leaders as they plot a course for 2018.”
The report—produced in collaboration with AIG, Deloitte, Grant Thornton LLP, Katten Muchin Rosenman LLP, Palo Alto Networks, and Spencer Stuart—offers expert analysis and advice to boards on issues that include business risk, board evolution, litigation, workforce disruption, and cybersecurity. Each section provides an overview of key trends, an outlook for how those trends will play out in 2018, and relevant implications and questions for boards to consider.
Here are just some of the insights offered in this outlook report:
- Board Priorities (NACD): Industry change, business model disruption, and changing economic conditions are among the top trends corporate directors expect to impact their companies in 2018, according to the recently released 2017–2018 NACD Public Company Governance Survey.
- Business Risk (Grant Thornton LLP): Boards should actively encourage more predictive risk management through scenario planning and the use of advanced analytics to address proliferating compliance and operational risks.
- Board Evolution (Spencer Stuart): Boards are considering a wider variety of profiles for new director candidates by adding first-time public company directors, active executives below the C-suite, and women and minorities.
- D&O Litigation (AIG): Directors and Officers (D&O) litigation against private companies has increased dramatically over the last decade, and this trend is expected to continue as many private companies with high valuations delay IPOs.
- Litigation Targeting Disclosure Omissions (Katten Muchin Rosenman LLP): Most securities lawsuits have targeted alleged omission of information, as opposed to financial misstatements.
- Workforce Disruption (Deloitte): Boards should confirm that senior management is moving the company beyond just technology adoption by cultivating a digital mind-set and changing how people view work and business to prepare for the future of work.
- Cybersecurity (Palo Alto Networks): Cyber risks will increase in volume, variety, and velocity. Many threats will come from automated attacks, making it imperative that organizations employ new defense strategies to prevent successful cyber attacks.
Visit 2018 Governance Outlook to download your copy of the report.
The National Association of Corporate Directors (NACD) empowers more than 18,000 directors to lead with confidence in the boardroom. As the recognized authority on leading boardroom practices, NACD helps boards strengthen investor trust and public confidence by ensuring that today’s directors are well prepared for tomorrow’s challenges. World-class boards join NACD to elevate performance, gain foresight, and instill confidence. Fostering collaboration among directors, investors, and corporate governance stakeholders, NACD has been setting the standard for responsible board leadership for 40 years. To learn more about NACD, visit www.NACDonline.org.