Board, Audit Committee Priorities Should Focus on Long-Term Value Creation

NEW YORK, Dec. 17, 2019 /PRNewswire/ -- Linking boardroom conversations on strategy, risk, and global disruption and understanding how stakeholder expectations are influencing long-term strategy will be critical for boards as they help their companies navigate the year ahead, according to U.S. audit, tax and advisory firm KPMG LLP's Board Leadership Center (BLC).

Drawing on insights from the BLC's ongoing work and interactions with corporate directors and business leaders, two publications – On the 2020 board agenda and On the 2020 audit committee agenda – spotlight areas to keep high on board agendas throughout the coming year.

"Front-page headlines on trade wars, Brexit, and geopolitics are front and center in the boardroom requiring more scenario planning and stress testing before strategic decisions are made," said Dennis. T. Whalen, leader of the BLC. "Robust scenario planning will be critical."

Other key topics for board agendas include:

• Building the talent in the boardroom around the company's strategy and future needs.
• Helping set the tone and closely monitoring the culture throughout the organization.
• Approaching cybersecurity and data privacy holistically—as data governance.
• Making CEO succession and talent development a priority.
• Having a crisis response plan in place and practicing it.
• Being proactive in engaging with shareholders, including activists.

To maintain its primary focus on financial reporting and audit quality, audit committees need to manage their agendas, noted John Rodi, leader of KPMG's Audit Committee Institute. "As the risks that audit committees oversee become more complex, committees should reassess their agendas to help ensure new items don't overwhelm their capacity to handle them."

Other items for audit committees' agendas include:

• Reinforcing audit quality and setting clear expectations for the external auditor.
• Closely monitoring management's progress on implementing the FASB's new credit loss standard.
• Redoubling the focus on the company's ethics, compliance, and whistle-blower programs.
• Understanding how technology is impacting the finance organization's talent, efficiency, and value-add.
• Reassessing the scope and quality of ESG/sustainability reports and disclosures.
• Helping ensure internal audit's eyes and ears are focused on key risks beyond financial reporting.

The reports can be downloaded at:

• read.kpmg.us/boardagenda
• read.kpmg.us/acagenda 

About the KPMG Board Leadership Center
The KPMG Board Leadership Center champions outstanding governance to help drive long-term corporate value and enhance investor confidence. Through an array of programs and perspectives—including KPMG's Audit Committee Institute, the WomenCorporateDirectors Foundation, and more—the Center engages with directors and business leaders to help articulate their challenges and promote continuous improvement of public- and private-company governance. Drawing on insights from KPMG professionals and governance experts worldwide, the Center delivers practical thought leadership—on risk and strategy, talent and technology, globalization and compliance, financial reporting and audit quality, and more—all through a board lens. Learn more at www.kpmg.com/us/blc.

KPMG LLP is the independent U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's independent member firms have 207,000 professionals in 153 countries and territories. Learn more at www.kpmg.com/us.

Contact:   
Elizabeth Lynch 
KPMG LLP
201.505.6316
[email protected]   

SOURCE KPMG LLP

Related Links

http://www.kpmg.com/us