KPMG Board Leadership Center

As we approach the year 2024, enterprises find themselves confronted with unparalleled disruptions and uncertainties. Drawing on insights from our survey work and interactions with directors and business leaders, Our 'On the 2024 board agenda' document highlights ten issues to keep in mind as boards consider and carry out their 2024 agendas

In the complex landscape of modern business, the role of corporate boards in risk management has never been more critical. With the ever-evolving global economy, geopolitical tensions, and technological advancements, boards face a myriad of risks that can impact the stability and success of their organisations. From existential risks to predictable surprises, the task of identifying, assessing, and mitigating these risks requires careful consideration and strategic planning.

As the global momentum towards sustainable business practices continues to grow, it has become imperative for organisations to discern and incorporate ESG consideration into their core strategies. In such a dynamic landscape, this document offers invaluable insights into the pressing need for organisations to embed ESG factors into their strategic frameworks.

In current times, expectations of management and boards continue to increase significantly as companies contend with uncertainty and disruption as well as demands for increased transparency amid new regulations and heightened stakeholder expectations around climate change, cybersecurity, human capital management (HCM), artificial intelligence (AI) among other issues. Considering this, nomination, and remuneration (NRC) committees would benefit from reevaluating the appropriate director skill sets and committee structures to oversee the company’s strategy, risks, and opportunities. The NRC will need to work with board leadership to establish and maintain a culture where the ability to adapt and the robustness of disclosures are viewed as vital to effective governance in today’s high-speed world. The Board will also need to guide the management in developing a compensation and workforce strategy that drives a strong corporate culture and motivates executives and employees to achieve corporate goals, whilst imbibing good governance practices.

As we enter 2024, Indian banks stand on a solid foundation compared to their global counterparts, boasting ample capital, robust earnings1. Stable interest rates, robust GDP, and declining inflation are expected to positively impact banking business. The interconnectedness between the banking and the Non-Banking Financial Companies (NBFCs) remains a matter of regulatory focus and exposure management. The Indian financial sector is also witnessing significant innovation and transformation such as Central Bank Digital Currency (CBDC), payment infrastructure, regulatory sandbox, etc. In a highly interconnected world, global economic volatility, geo-political tensions, technology and business model disruption, elevated cyber security risks, climate risks, societal polarisation, third party risks, etc. continue to remain areas of concerns and requires a very close attention. The growing prominence of artificial intelligence opens new opportunities while creating different risks / concerns.

In today's digital age, organisations face an unprecedented array of cyber threats, ranging from sophisticated cyberattacks to data breaches and ransomware incidents. The evolving threats necessitate a new perspective, emphasising the need to balance cybersecurity and privacy with broader business objective. Our document aims to underline eight cyber security considerations for boards to ensure there is a sense of digital trust and harmony that prevails through the organisations.

ESG has gained significant momentum for businesses, investors and shareholders across all sectors.