Key insights from our PwC Non-Executive Directors panel discussion
On Wednesday 5 April, we hosted our first NED event for the year ‘Striking a balance - navigating immediate concerns while building long term resilience’. This session was our first opportunity to reconnect in-person this year, and it was fantastic to host many of our NEDs in our Tāmaki Makaurau office and virtually.
Joined by Directors Cathy Quinn, James Miller and Sue Sheldon we discussed governing organisations through change and volatility, while building long-term resilience.
Some of the key points that we took from the kōrero were:
- To build a trusted and agile business, it’s vital to invest in resilience across our people and teams
- A board’s mindset needs to focus on support, first and foremost
- Enterprise risk management frameworks are crucial
- Boards must plan for balance sheet flexibility
- Ensuring longer term commitments are prioritised while maintaining the shorter term operational objectives
To build a trusted and agile business, it’s vital to invest in resilience across our people and teams
Well prepared boards think what they will do in advance to upskill their people to execute strategic, integrated resilience programmes and to respond effectively to a crisis. In PwC’s recent Global Crisis and Resilience Survey 2023, 57% of organisations cite upskilling future leaders as one of their top three most important elements of future-proofing resilience.
A board’s mindset needs to focus on support, first and foremost
To provide agility and responsiveness in a crisis, boards need to provide a calm, cool-headed presence for management teams to turn to. Being prepared to “get out of the way” and look beyond the immediate concerns, while management teams focus on the day-to-day operations, is key.
Enterprise risk management frameworks are crucial
Think broadly about how your business is positioned and utilise your risk register to develop a comprehensive approach to identifying, assessing and mitigating risks. While we cannot plan for every crisis, ensuring business continuity plans and organisational resilience is embedded will go some way to ensuring leadership and team agility.
Boards must plan for balance sheet flexibility
Including consideration at the time of entering into financing arrangements of the impact on financial covenants on potential adverse scenarios. Thinking carefully about the elements of your capital structure and how covenants play out under different adverse scenarios, and how your capital structure can mitigate that risk should be actively considered.
Ensuring longer term commitments are prioritised while maintaining the shorter term operational objectives
Juggling the immediate challenges facing your business, can impact the focus on long term priorities. Care must be taken to ensure a long term focus remains. Sustainability (ESG) was discussed as one factor moving up the board agenda, with investment decisions increasingly focused in that area.
I’d like to give a huge thank you to our panellists for their time and insights.
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