Beyond the Basics: Expand the Focus of Your Board Reporting

Impactful board reporting is succinct, focuses on value creation, and helps plan future strategies. Unfortunately, those key components are often lacking in board presentations according to our PE sources. Private equity professionals agree that board meetings often are not as focused on value creation as they should be.

These important topics and techniques can take your board presentations to the next level and ensure that sponsors are getting the information and business insights they need. 

Board Reporting Risk Management

Establishing a responsible management tone is important for bolstering risk management, an area of increasing interest for sponsors. Largely as a result of the pandemic, firms have realized the value of implementing better methods of safeguarding against future events. This is not to say that board discussions will be able to reliably prevent all unpredictable circumstances from having a negative effect on companies. But structuring conversations around risk management allows teams to identify problems early and prepare for various scenarios.

Examine current risk and resilience plans to make sure they align with what is most likely to be at risk. If your company is using an older risk management plan that doesn’t adequately cover current areas of instability, it’s time to make changes. The CEO and CFO can collaborate on this by combining financial data with current market trends in order to project future trajectory to the board.  

When preparing risk management reports and strategies, keep in mind that definitions of risk are always shifting. For example, the matter of human capital has become an area of increasing concern as the labor market continues to

To continue reading on Beyond the Basics: Expand the Focus of Your Board Reporting, please log in or register