Corporate leadership crises don’t just occur in the C-suite; the culture of a board of directors can also prove toxic to an organization. BDO’s Amy Rojik has three important questions for companies to ask themselves about their board composition and culture.
In the past year, notable controversies have highlighted the importance of maintaining a board composition and governance structure that is adaptive to the organization’s needs. A board culture that prioritizes continual improvement, development, mutual respect and a questioning mindset while recognizing and mitigating vulnerabilities is crucial.
To address evolving risks and market volatility, boards should proactively examine vulnerabilities in their oversight and seek opportunities for ongoing improvement. Proactive reviews of board governance structure, practices and processes, along with robust director assessments, can be valuable tools for maintaining an effective board.
Below are key questions for boards to consider:
1. How well does our current board composition align with our critical business objectives and challenges?
As companies and their risks evolve, so must the directors and boards that oversee them. Boards must continually review their composition concerning identified risks and implement training, succession and refreshment…
