How Corporate Boards Are Navigating the Deluge of Risks and Whirlwind of Forces

Corporate Boards

The board is responsible to oversee a company’s operations and ensuring that it’s operating legally and in the best interests of its shareholders and other stakeholders. It also works independently from the management of the company and its day-to-day operations.

In the last decade, boards have shaken off their image as a club of powerful insiders operating solely for profit and are reticent to fire CEOs. Instead, they’ve evolved into advisory teams, which are essentially coaches who are able to manage multiple pressures, from traditional expectations like growing revenue and creating strong succession plans for leadership to more modern ones like reducing the carbon footprint of a business and boosting social equity.

How are today’s top board members facing the tsunami of risks and the whirlwind force that is shaping our economy’s future? Fortune conducted a survey of board members and analyzed data from numerous companies to answer this question. Although we couldn’t find board that’s representative of a contemporary model, the most successful boards share a number of fundamental characteristics.

Diverse board members.

The COVID-19 epidemic has taught boards that having a diverse boardroom is becoming important in guiding strategy as well as weathering crises. The most efficient boards have a culture that is transparency and trust and work to keep their knowledge fresh through continuous learning and training, directors said.

The most active boards take an active approach to their responsibilities. They also give fewer responsibilities to committees, which helps preserve the vital distinction between the duties of the board and management. They also work to increase their financial literacy as well as are more knowledgeable about the technology they utilize and the latest developments in cyber security, as well as other issues that companies face today.

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