The new skills that corporate board members need

The specialization trend among company board members

It is not just a matter of perception: the world is increasingly polarized and technology-driven, which brings new needs regarding the governance of large companies. Overlapping crises are now a reality, and companies must also deal with them.

Situation. The intensification of tensions between the US and China following the Covid crisis, Russia’s invasion of Ukraine and now the Israeli-Palestinian conflict. As geopolitical risk has risen up the list of CEOs’ top concerns, it has also become increasingly important on the board agenda.

  • According to a recent Ernst & Young (EY) survey conducted in the Americas, political risk ranks seventh on a list of topics of concern and is growing in importance. This is mentioned by 45 percent of board members surveyed – an increase of 16 percentage points from last year’s survey.
  • In Brazil, the issue was mentioned by 42 percent of executives. President Luiz Inácio Lula da Silva’s recent attempts to interfere with the composition of the boards of oil giant Petrobras and mining company Vale also contribute to this perception domestically.

Why it matters. While previously the boards of directors of companies were formed by generalists with a relationship with the organization’s control group, now, with the evolution of market and governance rules, the participation of external and independent advisors is growing. “It is with them that companies are looking for…

Fabiane Ziolla Menezes

Fabiane, former editor-in-chief of LABS (Latin America Business Stories), has more than 15 years of experience reporting on business, finance, innovation and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, pioneering companies and people driving innovation in Latin America.