I was privileged to attend a peer meeting with other Audit Committee chairs to discuss important topics for the Board of Directors during 2017. Some of the main topics that concern board members include global economy, risk management and cyber threat.
Global Economic Outlook
Most board members agreed the new administration will provide domestic economic benefit through a strong dollar, better than expected GDP growth with modest inflation. In edition to Brexit and the China real estate bubble, International trade may be at risk as some trade agreements may be at risk.
Proactively managing risk in the form of developing plans to identify risks, ownership and response during an incident areas board members need to gain comfort. Having a rapid response by acknowledging the issue, apologizing for any issues and having a solid action plan for recovery are keys to ensure an incident doesn’t turn into a crisis. Business continuity planning is also an important aspect Board members should be discussing
Many board members agreed there are two types of companies; those who have been breached and know it, and, those who say they haven’t been breached. Advice was to train the board on risks associated with Cyber Threat as demand for Cybersecurity exports with board qualifications may be limited.
There are many challenges facing the members of Board of Directors. As these directors take on additional responsibility for governance, strategy and risk management they will shape our future economy