British boardrooms are failing to focus on critical business threats such as climate change, AI and cybersecurity, according to a study of 200 board directors by executive search firm Norman Broadbent in partnership with BDO.
Only 8% consider cybersecurity one of the top three risks facing their organisations, while other critical issues like AI (4%) and the environment (2%) lag further behind in board risk and opportunity assessments.
Instead, boards view the economic environment as the biggest risk facing their organisations (19%), followed by workforce talent (16%), access to finance (12%), regulatory change and compliance (12%), and geopolitical factors and UK Government policy (10%).
Not giving priority to future-proofing activities may stem from gaps in non-executive director expertise, suggests the report, Navigating a New Era for the Non-Executive Director.
Nearly all (96%) are struggling to attract those with the right skills or experience. Nearly a quarter (23%) are finding it difficult to attract the right competencies, relevant experience or industry knowledge. Overall, nearly a third of respondents (29%) said there was a challenge in finding the right talent due to the risk/reward ratio, the time commitment involved or the level of compensation more generally.
Paradoxically, while the risk of cybersecurity and Environmental, Social, and Governance (ESG) compliance appear undervalued on the board’s agenda, both are among the most frequently cited topics on board education plans over the coming year (both 11%), followed by AI (7%).
- Full report: https://bit.ly/3C2tSrd
VOLUME 19 ISSUE 6