Volatile times call for innovative board governance

Board strategies for growth amidst volatility

The level of disruption across today’s business landscape has put a spotlight on the importance of board governance. In this environment, it can be challenging to manage risk while pursuing organizational growth. Boards that demonstrate an ability to differentiate between fundamental macroeconomic shifts and transient fluctuations may gain a strategic advantage. Directors can use the following perspectives to assess disruptions and guide their oversight: 

1. Economic patterns
   Sustained alterations to cost curves or profit pools can signal a structural change in the broader economy.
2. Regulatory impact
   Rules that persist across administration changes may indicate a shift that boards can strategically address.
3. Customer behavior
   The stickiness of habit changes can foreshow which trends are likely to reshape market demands over time.
4. Emerging technologies
   New innovations could drive competitive shifts and enterprise-wide transformations across industry sectors.

This edition of On the Board's Agenda explores governance strategies for navigating disruption and managing risk. It outlines several leading practices directors can use to guide their organizations toward long-term success:       

• Strategy development and scenario planning approaches to help boards prepare for a range of outcomes
• Advanced technology tools—such as AI-powered analytics and digital twins—that can enhance risk management for boards    
• Board composition and upskilling techniques to equip directors to lead through uncertainty
• Seven questions to help directors jumpstart boardroom conversations on pursing growth opportunities while building resilience 

These insights underscore how effective board governance can turn disruption into an opportunity for sustainable growth. Read the full article for an in-depth look at how directors can guide their organizations through uncertainty and position them to thrive in a rapidly changing environment.