Seventy-five percent of corporate directors say the roles and responsibilities of the board will continue expanding in scope over the next three to five years, according to a new report released today by Diligent, the global leader in modern governance providing SaaS solutions across governance, risk, compliance, audit and ESG, and Corporate Board Member, the market-leading publication for public company board members.
The expanding remit of boards into areas like cyber risk, adherence with regulatory requirements, ESG and digital transformation underscores the need for the right data and insights to better oversee risk. Directors also expect the makeup of boards to change in order to better respond to these risks: 23% of directors said traditional board structures no longer align with today's increasing areas of risks and opportunities, and 25% said their next board member hire would need to fill a skills gap at the table.
"The list of issues shareholders associate with being material to a company's success and longevity has grown, and as a result, so have the expectations and responsibilities of the board of directors," said Lisa Edwards, Executive Chair of Diligent Institute. "While directors generally feel confident in their ability to rise to the challenge, we're hearing that they need help effectively overseeing new and evolving areas of risk ? particularly around issues like cyber risk and digital transformation."
The report, What Directors Think, details findings from a survey of 300 directors that provides new insights into what is top of mind for America's corporate directors in 2023. Among the top findings:
Boards struggle to oversee cyber risk and digital transformation
Audit committee responsibilities are expanding dramatically
Directors are suffering from "ESG fatigue"
"Interestingly, what we hear from directors about their priorities?growing revenues and strategic planning?hasn't changed over 20 years of fielding the survey," said Melanie Nolen, Corporate Board Member's Research Editor and the Director of Research for parent company Chief Executive Group. "But the proliferation of risk oversight issues and the quantification of the processes amid increased scrutiny from every group of stakeholders is significantly adding to directors' workload."
Read the full report here. To learn more about the evolving role of the board in 2023, register for the live webinar Boards Past, Present and Future: How to Manage Your Evolving Role, hosted by Diligent Institute and Corporate Board Member on February 21 at 1:00 pm ET.
To learn more about how Diligent supports organizations with a holistic view of their governance, risk, compliance, audit and ESG practices, visit diligent.com.
About Diligent Institute
Founded in 2018, Diligent Institute acts independently as the global corporate governance research arm and think tank of Diligent Corporation. Diligent Institute informs, educates, and connects leaders to champion modern governance through original, cutting-edge research, certifications and educational programs, networking opportunities and award and recognition programs. Learn more at diligentinstitute.com.
About Diligent
Diligent is the global leader in modern governance, providing SaaS solutions across governance, risk, compliance, audit and ESG. Empowering more than 1 million users and 700,000 board members with a holistic view of their organization's GRC practices so they can make better decisions, faster. No matter the challenge. Learn more at diligent.com.
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About Corporate Board Member
Corporate Board Member, a division of Chief Executive Group, has been the market leader in board education for 20 years. The quarterly publication provides public company board members, CEOs, general counsel and corporate secretaries decision-making tools to address the wide range of corporate governance, risk oversight and shareholder engagement issues facing their boards. Corporate Board Member further extends its thought leadership through online resources, webinars, timely research, conferences and peer-driven roundtables. The company maintains the most comprehensive database of directors and officers of publicly traded companies listed with NYSE, NYSE Amex and Nasdaq. Learn more at BoardMember.com.
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