As the country focuses on reopening and companies reposition for the future, it is increasingly clear that resilience—of strategy, the organization, and operating muscle—is proving to be the great differentiator of the pandemic era. From pivoting to “remote everything” and focusing on workforce well-being to deepening digital engagement with customers and recalibrating supply chains, the ability to quickly adapt to dramatic disruptions and dislocations has defined the survivors and thrivers.
The unprecedented events of the past two years have clearly put corporate governance processes, including board oversight, to the test. Demands for action on ESG performance, including climate risk, increased cybersecurity risks (including ransomware attacks), economic and supply chain challenges, a fast-changing regulatory landscape, and other factors impacting the global risk environment will continue to challenge even those boards at the top of their game.
In short, boards are at a pivotal moment. As one director recently observed, the need for today’s boards to help their company “reimagine, rethink, and reset is probably a once-in-a-generation opportunity.”
Drawing on our research, insights, and interactions with directors and business leaders, we highlight eight issues here for boards to keep in mind as they consider and carry out their 2022 agendas:
- Deepen the board’s engagement in strategy and envisioning the future.
- Embed ESG, including climate risk and DEI, into risk and strategy discussions.
- Engage proactively with shareholders, activists, and other stakeholders.
- Make talent, human capital management, and CEO succession a priority.
- Approach cybersecurity and data privacy holistically as data governance.
- Reassess the company’s crisis prevention and readiness efforts.
- Help set the tone and closely monitor the culture of the organization.
- Think strategically about talent and diversity in the boardroom.
BGF Partner in Charge
Partner, Audit & Assurance Services
KPMG in Indonesia
Harry is a partner in Audit & Assurance Services at KPMG Indonesia. He has more than 17 years of experience in auditing clients, particularly in the automotive, trading and services sectors. Harry is now taking the role as the partner in charge of KPMG Indonesia’s Board Governance Forum (BGF). Outside KPMG, Harry is a member of the Indonesian Institute of Certified Public Accountants (IAPI).