Roughly one-third of directors say they have a complete understanding of their company’s current strategy, up from one-fifth two years earlier. Twenty-nine per cent say their board has limited or no understanding of the risks the company faces. Directors say their boards spend 28 per cent of their time on strategy and 12 per cent on risk management. Nearly half say strategy is the area where their board was most effective in the past year.
The figures are from a McKinsey Global Survey of 772 corporate directors, fielded from 9 to 19 April 2013 and published on 1 August 2013.
Source: McKinsey & Company, “Improving board governance: McKinsey Global Survey results”, 2013-08-01.