In today’s corporate landscape, the spectrum of risks confronting boards and executives has grown far more complex and multi-dimensional than ever before. No longer confined to financial reporting errors or securities litigation, boards must now contend with cyberattacks, data breaches, geopolitical instability, AI failures, workplace culture issues, and environmental, social, and governance (ESG) shortcomings—all of which fall squarely within their ethical and strategic responsibilities. Experts are increasingly advocating for the adoption of a Fluency Audit as essential preparation for modern boards.
Complexity of Modern Risks
Traditionally, board-level risks were largely limited to financial misstatements, governance failures, or occasional securities lawsuits. However, recent years have transformed this landscape dramatically.
Janik LaChance, Chief Marketing Officer at Hub International, Quebec, observed during a 2026 Outlook webinar:
“The risk landscape facing CEOs and boards has changed profoundly over the past few years… it is now far more complex.”
Today, a board chair or director may confront multiple high-stakes challenges within a single week, including:
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A significant data breach in Europe
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Whistleblower allegations spreading rapidly on social media
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Geopolitical events trapping employees overseas
Conventional risk management models are increasingly inadequate to address these scenarios.
Emerging Dimensions of Risk
LaChance emphasises that boards must actively engage not only in securities compliance but also in broader areas, including:
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Cybersecurity and data privacy
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AI governance
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ESG reporting and environmental accountability
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Workplace culture and organisational behaviour
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Geopolitical presence and influence
The rapid dissemination of reputational risk via social media often bypasses traditional board decision-making processes, yet many boards still regard these issues as purely operational matters.
Fluency Audit: Preparing the Board
A Fluency Audit evaluates board members’ competencies against actual risk exposures, identifying gaps and providing a roadmap for restructuring or advisory support.
| Risk Area | Board Competency | Experience Gap | Recommendation |
|---|---|---|---|
| Cybersecurity | Medium | High | Engage specialised consultants |
| AI Governance | Low | High | Training and seminars |
| ESG & Environmental | Medium | Moderate | Advisory support and regulatory updates |
| Workplace Culture | Good | Low | Regular monitoring |
Another crucial component is an integrated insurance strategy. LaChance notes that purchasing policies in isolation exposes boards to governance weaknesses. Instead, directors should combine D&O, EPLI, and fiduciary liability coverage into a comprehensive, multi-dimensional risk approach, with annual reassessment.
Coordinated Strategy as Safeguard
Risk complexity is not static, and neither should be board capability. Today’s boards must continuously evaluate their competencies, map evolving risks, and implement integrated strategies. Without these measures, they cannot keep pace with the new era of multi-faceted corporate threats.
Fluency Audits and integrated risk strategies have thus become indispensable tools for boards navigating this challenging environment.