8 themes and Key questions to be on the Board Agenda in 2025 - January 29, 2025
Hervé Gloaguen
Audit, Compliance and Risk advisor, with global Leadership and Board experience. Former Allianz Group CAE and CCO: I share my experience of leading hundreds of audit and compliance experts Doctorate student (SDA Bocconi)
The BLC – Board Leadership Center – of KPMG France , chaired by Jean-Marc Discours issued a very good paper some days ago, with 8 master themes for 2025 to be addressed by the Boards of Directors.
This agenda is very relevant also for Internal Auditors in the sense that it is a series of questions where the Chief Audit Executive might want to have an opinion on.
Adapting strategy to geopolitical and economic upheavals
- Does management have the risk management tools it needs to detect changes in its ecosystem, and to warn of any strategic adjustments they may require?
- Is the company's risk profile regularly updated?
- Has an analysis of possible scenarios - including the most pessimistic - been carried out, together with stress tests on key assumptions?
- Have the interactions between the various major risks and the new assessment criteria for certain ESG risks been integrated into the risk mapping process?
- Has the company assessed the risks and opportunities of operating in a higher-cost environment (in terms of capital, technology, energy, labor), taking into account “national preference” policies?
Deploying generative AI
- Has an internal generative AI model been developed and deployed? How does management ensure an exhaustive inventory of AI modules deployed / used within the Group?
- What uses of generative AI are envisaged by the Group (new business models, new products, operational efficiency gains...) and what are their expected effects in terms of revenues and costs?
- What threats does the company face from the use of this technology by itself, its partners or competitors?
- How does senior management ensure that the use of AI is aligned with the company's values, ethics and standards of conduct?
- How does management keep abreast of legislative developments in the field of generative AI, and ensure that the company's processes and operating procedures are compliant in this area?
- Does the Group have the skills and resources needed to understand and manage the challenges of generative AI, including in the financial sector?
- How does the company ensure the quality and accuracy of the information produced by AI, a key issue in achieving its productivity and efficiency objectives?
Managing cybersecurity and data protection risks
- What data does the company store, manage and use? How is it collected, stored, processed, managed and secured?
- Who is responsible for monitoring cyber risk and data breaches? How are roles allocated to the various corporate functions: Information Systems Department, IT Security Department and Compliance Department?
- How does the company ensure compliance with data protection regulations in the different regions in which it operates?
- What are the main KPIs used?
- Have crisis management plans been and are they regularly tested?
Integration of ESG issues and supervision of sustainability reporting
- What ESG issues are significant or of strategic importance to the company?
- How does the company integrate these issues at the heart of its strategy and activities (operations, risk management, variable compensation and corporate culture) to boost long-term performance?
- What are the significant sustainability issues identified in the dual materiality analysis? Does the company have a sector benchmark?
- In its internal and external communications, does the company explain why ESG issues are strategically important?
- Is there a clear commitment on the part of senior management, and is there widespread support at all levels of the company?
- How are stakeholders consulted on ESG issues?
- Is there a system in place to ensure consistency and connection between sustainability and financial information?
Management succession planning and talent development
- What does the company expect from a future CEO?
- What profiles, skills and experience are required to steer the development and execution of the company's long-term strategy?
- What skills will the company need that differ from those of the current CEO?
- Is management's talent management plan aligned with strategy and short- and long-term needs?
- Have the categories of employees subject to shortages been identified, and what is the company's policy for attracting and retaining them?
- What talent management strategy has been put in place, in light of the company's commitment to diversity, equity and inclusion?
Corporate culture and building stakeholder trust
- What misinformation campaigns could have a material impact on the company's activities, and who might be the likely perpetrators?
- What situations could cause stakeholders to lose confidence?
- What processes does the company have in place to prevent or counter misinformation (risk management, corporate communications, investor relations, legal advice)?
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