The Dragonfly Boardroom

Boards must adopt dynamic visioning capabilities to solve problems as risks today move faster than the agendas they have traditionally addressed

- CYRIL SHROFF

CORPORATE BOARDS ARE undergoing a defining shift in today's volatile landscape. They are turning into survival sentinels and going over and beyond their customary governance roles. From observing how generative artificial intelligence (GenAI) is shaping business models, geo-legal risks impacting global transactions, to preserving reputation by staying on the right side of the social media minefield, the board's role today has become existential.

One big ask from the boards is to anticipate risks and guide organizations to navigate those proactively. Boards are expected to manage geopolitical, legal, and technological risks, transcending domestic boundaries. This responsibility is dubbed "dragonfly thinking"—drawing on the insect's ability to see in all directions. Today's risks are broadly categorized into the following heads:

Geo-legal risk: This is an emerging risk confronting corporates. Aside from the political consequences, this risk impacts commercial contracts and other obligations. For example, the recent Chinese directive asking Apple engineers to exit the country had more than political implications. Direct board oversight can help mitigate such risks. India is also facing such geo-legal issues on account of regulated investment climate (Press Note 5), impacting cross-border deals. Boards must stay alert to counter the ill-effects of such dynamics.