Recent corporate collapses such as BHS and Carillion have put "going concern" statements in the spotlight. New guidance will make non-executive directors—especially those on the audit committee—part of the assessment.
An increased focus on risk and compliance for financial services firms has led to a rise in committees, reporting and key performance indicators. But boards must ensure that short-term targets do not hamper long-term strategic vision.
The unprecedented pace of regulatory change in the financial services industry has led to substantial investment in the compliance function, but it needs greater support at board and executive levels in order to be effective.
This past year has been packed with governance events from the launch of new codes, executive pay debates, and leadership behaviour debacles to climate change, cybersecurity scandals and the Khashoggi murder.
Boards could take the opportunity to turn transparency to their advantage. A penetrating light is being shone on the tax affairs of multinational entities—but tax transparency will encompass all businesses in time.