In today’s rapidly evolving corporate landscape, the risks confronting boards and organisations have become far more intricate and multidimensional than ever before. From cyberattacks and geopolitical instability to AI errors and failures in workplace or environmental governance, these threats now fall squarely within the ethical and strategic responsibilities of board members. Experts suggest that to navigate this new reality effectively, boards must adopt tools such as the Fluency Audit to assess their preparedness.
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The Changing Nature of Board-Level Risk
Traditionally, many directors joined boards in an era when board-level risks were largely confined to financial reporting, conventional governance failures, and occasional securities litigation. Over the past few years, however, this landscape has shifted dramatically.
Janik LaChance, Chief Marketing Officer at Hub International, Quebec, noted during a 2026 Outlook webinar:
“The risk landscape for CEOs and boards has completely transformed over the past few years… and it is now vastly more complex.”
Modern board chairs and directors may face three major challenges in a single week:
Data breaches in Europe
Whistleblower allegations spreading on social media
Geopolitical events trapping employees abroad
Traditional risk management models often prove inadequate in addressing these scenarios.
Emerging Risk Dimensions
LaChance emphasises that boards must now actively engage with areas beyond securities litigation, including cybersecurity, data privacy, environmental reporting, AI governance, workplace conditions, and ESG-related failures.
“These are now routine occurrences, not exceptional events,” he said.
The rapid amplification of reputational risk via social media can outpace conventional board decision-making processes. Yet, many boards still perceive such issues as management responsibilities rather than strategic board concerns.
Fluency Audit: Assessing Board Preparedness
A Fluency Audit evaluates board members’ competencies against real-world risks, ensuring that the board’s capabilities align with organisational needs. It identifies gaps in experience, providing a roadmap for restructuring or advisory interventions.
Fluency Audit Example:
| Risk Area | Board Competence | Experience Gap | Recommended Action |
|---|---|---|---|
| Cybersecurity | Medium | High | Appoint specialist advisors |
| AI Governance | Low | High | Provide training and seminars |
| ESG & Environmental | Medium | Moderate | Seek expert advice; update policies |
| Workplace & Culture | Good | Low | Regular monitoring and assessment |
Integrated Executive Risk Strategy
The second pillar of effective risk management is insurance strategy. LaChance argues that purchasing policies in isolation exposes governance weaknesses. Instead, combining D&O, EPLI, and fiduciary liability into a cohesive, multi-layered risk strategy—and reviewing it annually—provides far stronger protection.
“Risk complexity is dynamic; board capability must evolve accordingly,” LaChance added.
The Imperative for Continuous Evaluation
Today’s boards cannot remain static. Continuous assessment of skills, proactive risk mapping, and the development of integrated strategies are essential. Without these measures, boards risk being unprepared for the multifaceted challenges of the modern era, leaving both organisations and stakeholders vulnerable.