Boards are falling short when it comes to challenging management. As a result, they may not be gaining all the information they need for sound corporate governance.
Tone at the top: Can Boards Meet the Challenge?
The results of the 2020 American Corporate Governance Index (ACGI) are in, but the jury’s still out on whether boards can meet the challenge during increasingly challenging times. Feedback from renowned chief audit executives overwhelmingly indicates that boards are falling short when it comes to challenging management. As a result, they may not be gaining all the information they need for sound corporate governance.
There are a number of reasons why boards should consider whether they are too hesitant in their engagement with management. In order for boards to overcome what feels like overwhelming challenges, they must not be drowned out and must understand how candid exchange of opinions, even contradictory ones, is beneficial for an organization. Bottom line, constructive debate leads to better decisions.
Download the latest issue, share it with your organization’s board, audit committee, and senior management, and review some of the key lessons learned from the 2020 ACGI.