Leveraging data from a recent survey regarding the frequency and scope of geopolitics on the board agenda, EY’s new report: “Three ways to transform board oversight of geostrategic risk” captures successful and leading practices boards employ to oversee geostrategic risk.
Notably, a majority of boards include political risk or geostrategy as a regular item on the board agenda occasionally (e.g., annually), while nearly one-third of boards do so quarterly. When they do so, boards most commonly address this topic in relation to assessing the impact of political risk on the company’s existing strategy (84%) and/or by receiving regular political risk briefings from the public affairs, risk management, or another function.
The report explains how boards enhance director skills and knowledge, embed geostrategic risk into their board and committee activities, and promote an effective management structure to govern geopolitical risk, which are the three key shifts EY identified as being undertaken by leading boards on this increasingly critical topic.
Access additional resources on our Geopolitical Risk page.
This post first appeared in the weekly Society Alert!