BDO in the Boardroom

Key Takeaways: Use of technological automation in the audit can yield increased efficiency, improved accuracy, consistency and quality. Complexity, data quality, lack of flexibility, resistance to change and over-reliance on technology are challenges to automating auditing procedures that need specific consideration. Auditors are intentionally and systematically focusing on automating aspects of t...

Key Takeaways: Service delivery models demand that auditors demonstrate their efforts are directed principally to potential risks and anomalies and areas of higher risk. Boards that derive the most value from audits that leverage data analytics are those that have pretty specific views of what constitute outliers or anomalies for the business and that understand the auditors’ demonstrations of how...

Key Takeaways: Building corporate sustainability is not about “being responsible for” but rather recognizing “how to work in concert with” a broader group of stakeholders to reduce friction and produce better results. Innovation in a staid industry requires: - Creation of an environment to embrace and enable change – first speak about what will remain the same and season in what the change will be...

Key Takeaways: The NEED: Data governance programs exist to manage change in data assets overtime. The WHAT: Data is an intangible asset that is constantly evolving and has a host of characteristics that make it difficult to manage compared to traditional assets. THE WAKE-UP CALL: When surveyed, 95% of respondents felt data governance programs were unsuccessful. The PITFALLS: Poor data governance s...

Key Takeaways: The basic tenants of succession planning require continuous focus and consensus and can provide an outline for preparation and vigilance. These include: Agreement on short- and long-term company goals Needed skills for the position - Keeping the job description of the upcoming vacancy current Keep a pipeline of candidates that span an array of various disciplines and experiences Boa...

Key Takeaways: Funding for the CHIPS Act has been signed into law. This act provides tremendous opportunities for semiconductor industry organizations to expand production in the U.S. and additionally, provides many other benefits to the economy. This podcast discusses: Opportunities for national economic initiatives for organizations that can pass threshold question – How does the project enhance...

Key Takeaways:   Suppliers have become an integral part of a company’s ESG performance against targets and laws, and therefore have an outsized impact on operational and financial performance Boards should set clear expectations for including supply chain risk within Enterprise Risk Management and require detailed management action plans to address and mitigate risks as well as identify opportunit...

Key Takeaways: Stakeholder-Centric: Ensure a communication strategy is developed around sustainability reporting that is driven by stakeholder needs Don’t neglect the passive or potential investors Depth and Frequency: Don’t just stop at the launch date plans, have a plan for targeted communications specific to multiple audiences year-round Multi-Channeled: Leverage multiple communication and medi...

Key Takeaways: Pillar Two comes in effect for accounting periods beginning on or after 1 January 2024 for multi-national companies with global revenue in excess of Euro 750m. Complexity will arise from both the detailed calculations involved as well as timing related to the phased-in approach by jurisdiction as to when each country will require implementation of global tax rules. Immediate steps t...

Key Takeaways and Tax Planning Points: Enacted as part of the Inflation Reduction Act (IRA), corporations are now subject to a 15% minimum tax on book income of $1 billion or more. The IRA also provided $80 billion of funding for IRS – with $46 billion earmarked specifically for enforcement. Enacted as part of the 2023 Omnibus Appropriations legislation, the SECURE Act of 2022 contains a host of r...

Key Takeaways: The discipline of modern governance today is really in a global realm – can no longer be thought of in simply local or regional terms. Governance should be viewed as a discipline and thus, your individual board “packaging” is critical to you being identified as a serious board candidate. Board Documents are not comprised of a resume or CV but rather are highly structured and specifi...

Key Takeaways: Be mindful of identifying material impacts of climate risk and whether you are satisfying current disclosure requirements Don’t be lulled into complacency or the belief that mid-term elections may derail final rule-making Review carefully current financial risk disclosures in line with other information being disclosed by the company Consider the resources you will need to implement...

Key Takeaways: As with any insurance, directors and officers need to have a clear understanding of the purpose of D&O insurance and what it is designed to cover and what is not included – e.g., deliberate fraud, criminal acts, and uninsurable fines and penalties as well as other exclusions or limitations including thresholds for triggering coverage. The velocity, volatility, and interconnected...

Key Takeaways: Shareholder proposal trends to anticipate continuing into 2023: Increasing shareholder proposals – made easier by prior years’ SEC regulations allowing more access for shareholders Certain commitments made by companies in previous periods (e.g., racial equity audits, DEI and other social aspects) likely to be scrutinized by shareholders, reflective of societal concerns Individual di...

Key Takeaways: Data protection, which encompasses data governance, data privacy and cybersecurity, should be considered as part of the board’s oversight of risk and strategy The board’s responsibilities related to data protection include identifying director(s) or advisor(s) with the appropriate skills and experience, stating explicit accountability within the board, keeping management accountable...

Key Takeaways Flexibility is dynamic way of operating business across workplaces, spaces and time with strategic coordinated intention to achieve high levels of performance and engagement. Lead with the what (not the where): Flexibility is about organizing around the work itself and how, when and where it happens best, no longer around the workplace. Boards and management teams, who have already i...

Key Takeaways: Each change to a business represents new strategic opportunities, but those changes also present new potential risk of and to the corporate strategy. Boards need to understand how the executive team approaches risk informed decision making to assess effectiveness. Streamlining and optimizing risk management require proper structure, process, and timing of risk assessment and mitigat...

Key Takeaways: Audit committees can ensure smooth ICFR implementation by encouraging early planning, helping secure adequate resources, being familiar with management’s process to identify risks and management’s processes and controls in place to manage those risks. Boards should be particularly focused on controls addressing areas of the business that are inherently higher risk. IT systems are cr...

Key Takeaways: Today’s organizations are being called to contribute positively as part of the greater ecosystem, which is compelling directors to embrace the role of change catalysts and “intraprenuers.” People, as our greatest assets, need board directors to oversee the creation of work environments that value employees to allow them to ‘bring their whole selves to work.” Assembling a board compo...

Join BDO's Center for Corporate Governance Amy Rojik as she and her colleague Todd Simmens , National Managing Partner of Tax Risk Management, to discuss how the board’s oversight of corporate strategy and risk management would be remiss without an understanding and consideration of evolving global and domestic tax regulations anticipated to significantly impact decision-making at the board level....

Join BDO's Center for Corporate Governance Amy Rojik as she and her colleague Mike Stiglianese , who serves as the Managing Director in BDO Consulting’s Technology Advisory Services Practice, discuss the SEC’s recently proposed rules on cybersecurity risk management, strategy, governance and incident disclosure and the impacts and considerations these rules may have on those charged with governanc...

Join BDO's Center for Corporate Governance Amy Rojik as she and her colleague Dan Fuller , Managing Partner Tax ESG Strategy and Services Leader, discuss opportunities to align the board’s oversight of ESG strategy with taxation considerations to be truly impactful in corporate decisions-making in this evolving area. Key Takeaways: Where is the “T” in ESG? – Given that the majority of business tra...

Join BDO’s Hitesh Shah, leader of our San Jose Board Roundtable series, in discussion with Raj Sisodia , Co-founder of Conscious Capitalism movement, as they discuss the importance of the board’s role in supporting conscious leadership and building a conscious business. Key Takeaways: The board’s role is critical in helping management define the purpose of the company to build and support a consci...

Join BDO’s Hitesh Shah, leader of our San Jose Board Roundtable series, in discussion with Raj Sisodia , Co-founder of the Conscious Capitalism movement, as he introduces the concept of Conscious Capitalism and the potential impacts of embracing the movement in your organization. Key Takeaways: Conscious Capitalism is a philosophy based on the belief that a better form of capitalism is emerging th...

Join BDO's Center for Corporate Governance Amy Rojik as she sits down with Amanda Shpiner , Managing Director at Gasthalter & Co. LP, to discuss considerations for board communications as part of an overall governance strategy in the face of numerous disruptions impacting the business. Key Takeaways: • Boards have the responsibility to continuously monitor vulnerabilities and hold management a...