Emerging Market Boards Navigate Uncertain Times

A recent report by the Boston Consulting Group, Heidrick & Struggles, and INSEAD highlights how boards in emerging markets are adapting to an era of heightened uncertainty. The study reveals that geopolitical and economic disruptions, alongside technological and climate changes, are significantly impacting governance practices. These forces require boards to evolve beyond traditional risk management strategies.

Emerging market boards face compounded global and local pressures. Despite these challenges, opportunities for improved governance are emerging. Boards are enhancing foundational practices like risk oversight and contingency planning, while also focusing on trust and cultural cohesion. Engaging proactively with regulators can reinforce governance standards, contributing to broader societal stability.

The report underscores the importance of board diversity and continuous learning. By embracing diverse perspectives and focusing on strategic foresight, boards can better navigate unpredictable environments. The study concludes with a framework for assessing governance readiness amid uncertainty, emphasizing structure, behavior, and ecosystem stewardship.