On the 2024 board agenda

Heading into 2024, companies face unprecedented disruption and uncertainty—wars in Ukraine and the Middle East, trade and geopolitical tensions, economic volatility, persistent inflation and higher interest rates, technology and business model disruption, elevated cybersecurity risk, climate risk, domestic polarization, political gridlock in the US, and more. Advances in artificial intelligence (AI) and heightened regulation will add to the challenge.

In this volatile operating environment, demands—from investors, regulators, employees, and other stakeholders—for greater disclosure and transparency, particularly around the oversight and management of risks to the company’s operations and strategy, will continue to intensify. The pressure on management, boards, and governance will be significant.

Drawing on insights from our survey work and interactions with directors and business leaders, we highlight nine issues to keep in mind as boards consider and carry out their 2024 agendas:

• Link boardroom discussions on strategy, risk, and global disruption.
• Monitor management’s efforts to design and maintain a governance structure for the development and use of generative AI.
• Maintain the focus on cybersecurity and data privacy and monitor management’s preparations for compliance with the SEC’s cybersecurity rules.
• Identify the company’s material or strategically significant climate and ESG issues, and embed them in risk and strategy discussions.
• Keep abreast of management’s preparations for new US, state, and global climate and sustainability reporting requirements.
• Enhance communication and coordination regarding risk oversight activities among the board and its committees.
• Clarify when the CEO/company should speak out on social issues.
• Make talent, human capital management (HCM), and CEO succession a priority.
• Think strategically about talent, expertise, and diversity in the boardroom.