RSM’s webcast, Tackling 2021’s greatest board leadership and governance challenges, offered an executive briefing addressing key financial, regulatory and governance issues for 2021. Read below for key takeaways from our presenters.
Current SEC focus areas may shift under the new administration, but currently include (among others):
In this COVID-19 environment (and as things change in the future), a company’s disclosures should remain principles-based—that is, focused on what is important to the company, what is material and what is useful to investors. Such disclosures include not only those related to risk and financial matters, but also those related to governance, such as audit and compensation committee matters. The Center for Audit Quality’s 2020 Audit Committee Transparency Barometer gauges how audit committees approach such public communication.
When change is announced in an organization, productivity will drop. This drop in productivity can be minimized if the change in question is treated like a “process” rather than a one-time “event.” All humans’ reactions to change can be predicted, managed and measured as outcomes in the effort to return to the same or higher levels of performance
Resistance to change is unavoidable. Frequent and consistent communication is critical to uncovering that resistance and minimizing it. Organizational change management will influence behaviors that are required to successfully implement and deliver the business case or benefit ROI financial and non-financial targets quickly. This is called accelerating the time to value.
Today, many companies have too many “good ideas with a budget” and too few “strategic imperatives.” This can lead to change fatigue and impact benefit delivery. Board members should therefore question such ideas and measure them against the drivers of the company’s strategic purpose. It is be helpful for a company to identify the strategic pillars for its post-COVID-19 existence to properly value what needs to change—and, equally importantly, identify projects that are not aligned with their overall strategy
Q3 and Q4 was an extremely busy M&A time, and we believe 2021 will continue to be a robust M&A season due to low interest rates and overall improved economic conditions. Here are a few areas of consideration for boards amid the buzz of M&A activity:
This webcast will offer an executive briefing addressing key financial, regulatory and governance issues for 2021.