The end of the Chevron doctrine

In the third episode of “Setting the Board Agenda,” Brian Stafford, President & CEO of Diligent, speaks with Dr. Dambisa Moyo, board member of Chevron and Condé Nast to discuss the way boards evaluate and prioritize geopolitical risks during an election year. Highlights of their conversation include:

• The uncertainty in geopolitics, the macro economy, and the general operating model is at the top of board agendas. Previously, boards would plan their investments for the next three to five years. However, now, the planning period has been reduced, with the primary concern being how the organization is going to survive the year ahead.
• The role of the board in overseeing an organization’s risks is crucial. The board should never be caught off guard. If there’s a surprise in the direction or magnitude of the risk, it should be manageable for the board to help the company weather the storm.
• No organization is immune to risk. Risk mitigation involves anticipating potential issues to ensure they don’t incapacitate an organization once identified. Risks should also be used to strategize and adjust future investments accordingly.
• Dr. Moyo’s recommendation for those attending their first board meeting: listen and observe. Attending your first board meeting is like showing up in the middle of a movie. You need to figure out the plot and characters before asking questions.

In this episode of Inside Today's Boardrooms, we’re joined by Brad Sorrels, Chair of the Corporate Governance Litigation Practice at Wilson Sonsini. Sorrels discusses board communications, the risks associated with poor communication, and best practices to follow.