Key challenges boards should address in 2025

Boards can expect their oversight and corporate governance processes to be put to the test in 2025 as companies face unprecedented disruption and uncertainty.

In this volatile operating environment, demands from investors, regulators, employees, and other stakeholders for greater disclosure and transparency will continue to intensify. Navigating the increasingly vast and complex challenges remains a balancing act for non-executive directors and boards.

In our report, On the 2025 board agenda, we draw on insights from our global Board Leadership Centre network to highlight eight key issues to keep in mind as boards consider and carry out their 2025 agendas.

On the 2025 Board Agenda

Top challenges facing boards and board committees in 2025.

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Top boardroom priorities for 2025: Eight key challenges

In 2025, boards will face significant challenges to their oversight and corporate governance processes due to global disruptions such as trade tensions, economic instability, and cybersecurity threats, compounded by advances in AI and increased global regulation demanding greater transparency.

Here are the eight key issues for boards to consider for their 2025:

Geopolitical and economic risks

Boards should focus on how management is addressing risks and opportunities arising from global disruptions such as wars and economic instability. This includes reassessing strategies and capital allocation to ensure resilience in the face of shifting supply chains and geopolitical tensions.
AI strategy and governance

Be clear about the organisation’s strategy for generating business value with AI, then monitor its deployment. Boards should oversee the governance structure around AI use, ensuring risks are managed and aligned with company values.
Data governance and cyber security

It's crucial for boards to ensure data governance frameworks are robust and able to handle growing data privacy and security threats. They should also oversee cybersecurity measures to address the sophisticated risks posed by AI-enabled attacks.
Environmental and social issues (ESG)

Boards must consider how to ensure environmental and social issues are included in risk and strategy discussions while preparing for new reporting requirements. This helps align to stakeholder expectations amidst regulatory and societal pressures.
CEO succession and talent development

Effective CEO succession planning should identify necessary skills for future leadership in alignment with company strategy. Boards also need to ensure there are talent development programs across all levels to meet future demands, especially with emerging technology and ESG requirements.
Corporate culture and stakeholder trust

Boards should actively shape and monitor corporate culture to ensure ethical conduct and alignment with company values. Building and maintaining stakeholder trust is vital, especially in managing risks from misinformation and corporate crises.
Risk oversight responsibilities

Clearly delineate risk oversight roles among board committees to manage complex and overlapping risks effectively. This requires structured information-sharing and coordination to ensure comprehensive and consistent management.
Board composition and succession planning

Proactive succession planning for directors and board leaders is essential to maintain high performance and strategic foresight. Align board composition with future strategic needs, focusing on diversity and relevant expertise.

How to drive sustainable success for boards in 2025

As boards navigate the complex challenges of 2025, focusing on the eight priority issues highlighted can help enhance board governance, ensure resilience and enable organisations to more easily adapt to the rapidly evolving landscape while meeting stakeholder demands for greater transparency and effective risk management.

Download: On the 2025 board agenda

Dive into our thinking: Explore the eight issues for boards to keep in mind as they carry out their 2025 agendas.

On the 2025 Board Agenda

Top challenges facing boards and board committees in 2025.

Download report(PDF 2.2MB)

What is KPMG’s Board Leadership Centre?

KPMG’s Board Leadership Centre is a global program connecting and supporting non-executive directors in facing today’s challenges, anticipating emerging threats and harnessing new opportunities.

As a member of the program, you’ll gain access to exclusive tools and resources as well as an extensive network of other non-executive directors to help you navigate the ever-changing demands of society and the business world.

You’ll have the opportunity to trade insights, share ideas and support each other in tackling today’s boardroom issues.