International market risk

The growth of emerging markets is attracting many developed-market companies looking for growth opportunities. Yet the risks companies encounter in these markets can pose major threats to success. Board directors are challenged to help their companies appropriately plan for and address the new strategic, operational, compliance-related, and political risks that international growth entails.

Directors recognize that full board and board committee oversight has to adapt in order for companies to successfully navigate growth in international markets. They are seeking education on related risks and trends, ensuring strategic plans and risks are examined concurrently at the board level, and adding directors with international experience to the board.

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Engaging with strategy after the financial crisis

Members discussed how they engage with strategy in a post-crisis, globalized business environment. The focus of their renewed strategic review is often international, where the excitement concerning impressive growth opportunities is tempered by distinctive risks. Ambassador Susan Schwab, the 15th United States Trade Representative, joined the meeting as a guest.

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Overseeing international risks and opportunities

Audit committee chairs discuss how their oversight is shifting to help companies navigate growth into emerging and other international markets, including the nature of their risks and new management practices to mitigate risk.

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Board and audit committee oversight of M&A

A transactions advisor noted that “It is the best of times, and also the worst of times for M&A.” Members shared practices to enhance transaction oversight before, during, and after a deal is announced.

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Risk in emerging markets

The expert who coined the term "emerging markets," Antoine van Agtmael of Emerging Markets Management, discussed with audit chairs the dramatic shift towards growth in the emerging markets and implications for oversight.

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Related links:

Global Audit Committee Leadership Networks

North American Audit Committee Networks

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