2019 Governance Outlook:
Projections on Emerging Board Matters
Arm your board with critical business and governance intelligence
In brief: The 2019 Governance Outlook: Projections on Emerging Board Matters is NACD’s second publication in this annual report series, providing corporate directors and senior executives with a comprehensive, forward-looking overview of major business and governance issues that are likely to require board focus over the coming year. The report includes insights and projections from four partners—Baker Tilly, Ceres, Deloitte, and Spencer Stuart—on the following themes: business risks, climate change, board refreshment and composition, regulatory updates, and mergers and acquisitions.
Boards can use this resource to assist them in taking the following steps:
- Highlight critical business risks that may impact company strategy.
- Evaluate boardroom practices around composition, succession, and recruitment.
- Encourage scenario-planning exercises to mitigate uncertainty.
- Implement specific strategies to effectively prepare for potential deal-making activity.
- Discuss the material impact of climate change on their business or industry.
- Anticipate and prepare for possible changes in the regulatory landscape.
Baker Tilly (Strategic Business Risks)
As boards face mounting pressure from investors and other stakeholders to demonstrate proper oversight of risks from international trade and tariffs, tax reform, cybersecurity, and privacy concerns, directors should ensure that their organizations are prepared for regulatory compliance, that they understand the impact of these risks, and that they have a comprehensive monitoring program in place.
Ceres (Climate Change)
Directors should have management assess whether climate change will have a material impact on the unique circumstances of their businesses, and, if so, how this impact could be integrated into corporate strategy. This assessment should consider the viewpoints of critical stakeholders, including the investor community, on risks and opportunities.
Deloitte (Mergers & Acquisitions)
To effectively prepare their companies for future mergers or acquisitions, it’s critical for directors to leverage insights from previous deals and utilize established practices for reviewing M&A proposals. The following actions are recommended: enhance the deal process, explore multiple potential scenarios, strengthen technology expertise, and cultivate an understanding of global deal-making.
Spencer Stuart (Board Refreshment and Composition)
The stakes for having the right people around the boardroom table have never been higher. Directors need to have the skills and experiences that not only align with their company’s long-term strategic direction but also enable their boards to effectively advise management amid unprecedented change and business disruption.