Board directors today are more confident in their knowledge of the companies they serve and more strategic in their approach than they were in 2011, according to the latest Mckinsey global survey on governance. The survey was based on five key parameters related to boards' understanding of company issues as following:
1. Financial Position
2. Current Strategy
3. Value Creation
4. Industry Dynamics
5. Risks faced by the Company
While respondents say their boards are taking more responsibility for strategy, risk management is still a weak spot-perhaps because boards (and companies) are increasingly complacent about risks.
Going forward, most boards need to devote more attention to risk than they currently do, to spent more time on board work and to learn from the actions taken by higher impact boards.
1. Financial Position
2. Current Strategy
3. Value Creation
4. Industry Dynamics
5. Risks faced by the Company
While respondents say their boards are taking more responsibility for strategy, risk management is still a weak spot-perhaps because boards (and companies) are increasingly complacent about risks.
Going forward, most boards need to devote more attention to risk than they currently do, to spent more time on board work and to learn from the actions taken by higher impact boards.
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