In today’s world, business can change at the drop of a hat as new technologies and disruptors constantly emerge. To stay ahead of the game, companies, and the executives leading them, cannot stick with status quo. They must prepare for whatever the future holds—and this goes for audit committees as well.
Having well-prepared audit committees goes a long way, and deciding what belongs on an audit committee meeting agenda and what doesn’t, is critical. So, what should audit committee members prioritize and spend more time on? Here are five suggested focus areas.
1) Rethinking risk oversight
Most companies have upped their game in developing robust enterprise resource management (ERM) processes. In the recent past, this was a concern—strong ERM helps in risk management. Yet ongoing economic and market volatility and digital disruption, as well as the complexity of business today (e.g., technology, cyber risk, geopolitical instability, etc.), are prompting boards and audit committees to reassess their risk oversight role.
Audit committees and boards, as a whole, should ask themselves the following questions:
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- Is there clarity and agreement on the top five strategic and…
