The podcast of EGADE Business School and the School of Business of Tecnológico de Monterrey is available on Spotify, Amazon Music, Apple Podcasts, and YouTube Music.

By SOFIA VALVERDE ZAMORA | EGADE BUSINESS SCHOOL

Corporate governance has become critical for companies seeking to flourish in uncertain and highly competitive contexts. 

Episode 174 of Business Territory, " Corporate governance: Leading uncertainty," Eva Guerra, academic associate dean at EGADE Business School, moderated a discussion on the relevance of boards of directors in times of accelerated change. 

Guests in this episode were Álvaro Vértiz, Country Head & Partner at DGA Group, and Daniel Maranto, professor from the Strategy and Leadership Department at EGADE Business School.

Maranto stressed that in the current context of volatility, firms need a solid direction to support strategic decision-making.

"The environment is much more complex than before, and CEOs require the support of a board to guide them in analyzing and assessing risks," the professor explained.

Vértiz then pointed out that the role of the board of directors has evolved in Latin America, transforming into an essential body for business sustainability. "Today more than ever, a board of directors should be made up of people who have relevant experience, are committed, and understand the importance of their role in the company," he affirmed.

Both guests agreed that one of the most significant challenges organizations face is emerging risk management, such as adopting new technologies and climate change. "The board has to be prepared to respond to digitalization, artificial intelligence, and other external changes that affect the company," Vértiz mentioned.

Concerning organizational culture, Maranto underscored the need for companies to maintain a culture aligned with their strategy. "A business culture open to innovation is the key to adapting to uncertainty," he commented. He also emphasized the importance of boards being proactive and flexible.

Vértiz added that the most successful companies in the region have adopted decentralized structures that foment autonomy in decision-making. "Agility is fundamental to flourish in this environment. Companies that allow their teams to act in an agile manner are the ones that are better at adapting," he said.

Finally, Vértiz and Maranto both agreed that companies that manage to build resilience and adapt to new market realities will be the ones that maintain their competitiveness in the long term.

Learn more about this topic and listen to this and other Business Territory episodes on Spotify, Amazon Music, Apple Podcasts, and YouTube Music.