In a world where risks are increasingly complex and interconnected, the governance role of the board must evolve to embrace change, oversee the requisite level of risk-taking and drive resilience and innovation, rather than simply maintaining stability. This is what will differentiate board directors who successfully steward organisations over the next decade and beyond from those who don’t. Stewardship must be the board’s calling card.

1. Look to the longer term

In a volatile landscape, boards are overseeing an increasingly complex web of risks, demanding that boards become comfortable with the uncomfortable, champions of long-term organisational health and responsible proponents of innovation in the face of uncertainty.

To do this, they must think beyond immediate concerns such as quarterly results and political headlines. Yet WTW’s 2025 Board Stewardship Survey found that 40% of board members don’t spend enough time on strategic planning for the long-term, with time spent largely on financial results and reporting. And only 23% of executives were confident their organisation’s strategy would remain resilient to risks that might emerge in the next 10 years (WTW’s 2024 Emerging and Interconnected Risks Survey).

Ultimately, the nature and level of risks will differ by company and individual, but what is consistent for boards is the challenge of how these risks (and opportunities) interact. For example:

– How will geopolitics impact the green transition and the risks associated for our business?
– How do we mitigate disruption to our supply chains from extreme weather events and nature loss; or support employees who may face increased climate-related displacement or health risks (such as heat stress, poor air quality, and the spread of diseases)?
– How can we harness the opportunities of AI, while managing the possible security risks and impacts to the workforce?
– How can we use AI to enhance our board effectiveness?
– How could management of risks be improved through cross-economy engagement, and what is the board’s role in that?

2. Work on boardroom composition, skills and dynamics

It’s no longer enough for boards to rely solely on technical skills. The key to effective governance is ensuring the right composition, combination of perspectives, culture and dynamics that enable boards to challenge, embrace change and innovate.

This includes the need to develop new skills in emerging risk areas discussed in the previous section, such as human capital, cybersecurity and the green transition. However, WTW’s Board Stewardship Survey (2025) found that only half (51%) of respondents are confident in the skills of fellow board members to provide effective oversight over climate-related risks and opportunities; and this reduces to less than one-third (28%) when asked about other environmental risks, such as nature and biodiversity loss.

Beyond individual expertise, the composition and dynamics of the board itself are equally important. Effective governance requires the ability to collectively challenge, innovate and make decisions often in the context of incomplete data and many unknowns. This is where critical leadership skills are essential for honing the right boardroom culture: courage, resilience, adaptability, sensemaking and vulnerability.

Similarly, it may be necessary to revisit board structure to facilitate the necessary time on material business issues (for example, is there a need for a standalone risk and/or sustainability committee?).

3. Align executive incentives and risk appetite

The question of how to balance futureproofing with risk-taking is paramount. This highlights a key tension: the UK’s tendency towards “safetyism” in corporate governance, which contrasts with the more risk-tolerant stance often seen in the US. Caution is understandable in the face of rising risks and complexity, but it also risks stifling the innovation necessary to stay competitive.

Recent trends in the UK corporate governance landscape suggest a slight easing of bureaucratic burdens, empowering boards to take more calculated risks to boost the UK’s competitive global standing.

Today’s risk landscape requires boards to rethink how they incentivise executives to encourage sustainable value creation and calculated risks that align with long-term strategy. Early insights from the 2025 AGM season showed a continuation of bold moves in remuneration policy changes, largely proposed with the rationale of ‘increasing global competitiveness’.

This reflects some divergence from UK pay norms with focus on a business-first approach and perhaps greater openness to risk-taking. However, it is critical for boards to consider the right incentive design for them, not to blindly follow market practice, whilst maintaining a view of evolving governance and investor expectations.

Actions for boards:

1.  Review board agendas to ensure sufficient time on stewardship topics and adopt dynamic risk management tools to equip board discussions on interconnected and complex risks.

2.  Ensure your board evaluation approach captures culture and dynamics and does not rely on self-reports. Regularly assess the skills of the board to develop non-traditional skills required to tackle long-term risks and guide businesses through change and transformation.

3.  Foster a mindset that treats risk as an enabler of opportunity and review executive incentives to align with risk appetite as well as material long-term strategic goals and business resilience.

Boards must shift their focus from managing stability to driving long-term value creation, innovation and resilience. By revisiting their stewardship role, rethinking board skills and dynamics, and aligning executive incentives with sustainable growth, boards can navigate the challenges ahead while positioning their organisations for success in an uncertain world.

Hannah Summers is director of executive compensation & board advisory, stewardship and sustainability; Richard Belfield is European practice leader, executive compensation and board advisory; and Sobia Sheikh is GB director for enterprise risk; all at consultancy WTW