FOCUS FOR BOARDS IN 2023
As you’re probably aware, the world is changing rapidly, hence the act of proactiveness to adapt and anticipate change has been of much importance in recent times. Based on research and experience, boards should prioritize the following in 2023:
• Strategic Direction;
• Risk Management;
• Governance, Sustainability/ESG;
• Diversity and;
• Digitization and Innovation.
Strategic Direction
The world of business is ever-changing, Boards should ensure that their company has a clear and compelling strategic plan that takes into consideration the short and long-term goals of the business.
Risk Management
As the business environment becomes increasingly complex, boards need to be proactive in identifying and managing risks that could impact the company’s performance and profitability. This includes considering financial and non-financial risks relating to regulatory compliance, cybersecurity, and reputational damage. For instance, many companies will need to clamp down on their employees' social media usage. Some risks boards may also consider reputational loss, financial disclosure, sensitive data, and competitor risks.
Sustainability and ESG
Increasingly, boards should focus on ensuring that their company is environmentally and socially responsible. This includes considering how their company’s operations and products affect the environment, as well as how they treat their employees and the wider stakeholder group.
Digitalization and Innovation
Most companies were forced by the COVID-19 pandemic to consider ways in which they can leverage digitalization and innovation to drive growth, improve efficiency and remain competitive. Digitally savvy Boards must carefully consider a growth plan for the company – having a zoom account isn’t enough. Concerns like cybersecurity must be prioritized.
Board Composition and Diversity
The diversity of the board is critical to its effectiveness. The board should reflect the diversity of the stakeholders it serves. Board diversity and inclusion are not limited to gender inclusivity but rather a composition of a diverse group of individuals with different backgrounds, experiences, and perspectives. This ensures well-informed decisions that take into account a range of perspectives.
Of course, these are just a few examples of what boards might focus on in 2023, and the specific focus areas may vary depending on the company and its industry. Ultimately, the most important role of the board is to provide oversight and direction that helps to ensure the sustainability and long-term success of the company.
Good governance underpins any successful company in today's volatile world. A growing number of boards recognize this and have shifted their frame to focus on building the best corporate governance practices. We can help you run your board confidently, minimize risks and create a more secure robust team for the company.
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Scribe Advisory & Consulting
www.yourscribe.co