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KPMG reveals company directors' top concerns

Mar 24
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KPMG reveals company directors' top concerns

KPMG has revealed that risk management oversight and assessing innovation and emerging competition top the list of current governance challenges for private company directors.

A survey by the professional services firm also found that tight budgets and resource constraints are the biggest threats to directors being able to manage their problems effectively.

Focusing on risk management, the study found that attracting and retaining talent in the finance department is the biggest challenge in financial risk oversight, with around one in five respondents (19 per cent) identifying it as an issue.

More than half (54 per cent) of directors said their company's board would like to be better informed about financial risk management, with many organisations turning to technological solutions to improve their knowledge.

When asked about board effectiveness, more than a third (36 per cent) of those questioned said budget and resource constraints were the biggest hindrance, while 28 per cent said their boards had conflicts of interest, including the presence of related parties.

A quarter (25 per cent) of directors felt there was an over-representation of controlling shareholders on their board.

Big data and analytical tools are expected to improve boardroom decisions by making it easier to identify trends in company data (41 per cent) and by helping managers to allocate resources (38 per cent).

Brian Hughes, national private markets group leader at KPMG, said: "Governance models are in constant need of fine-tuning.

"Owners and management teams need to share the right information with the right set of advisers and board members, starting with the organisation's risks to help shape the vision and strategy for the organisation to remain competitive."

In another recent survey by enterprise and cloud apps provider MetricStream, more than three-quarters of governance, risk and compliance professionals cited risk oversight as a major driver for investment in their field of work.

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