Kick-Starting a Start Up Through Intentional AI Usage
Key Takeaways:AI can be viewed as a necessity for growth to drive both cost savings and revenue growth.Establishing a strong governance framework is crucial for managing risks associated with AI, such as data breaches and compliance with regulations like HIPAA and PCI.AI can be used both reactively to address immediate pain points and proactively to predict and optimize future business operations.While speed and scale are important, startups must ensure they do not compromise on compliance and governance, which are vital for sustainable growth.Developing an AI use policy is a best practice to guide internal and external applications of AI, ensuring responsible and effective usage.
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18:54
Global Trade War: Tariff Considerations for Board of Directors
Key Takeaways: Have a clear understanding of entire supply chain – from where merchandise originates to where it is assembled or manufactured Gather and analyze transactional data to understand the financial impact of tariffs Review the customs triangle levers: tariff classification, country of origin, and value reported to customs Manage the tension between transfer pricing and customs valuation, as these both work in opposite directions Consider the long-term strategy of relocating manufacturing taking in factors such as: cost savings, labor rates, and potential free trade agreements Consider ethical sourcing and sustainability issues, such as compliance with forced labor prevention laws and environmental impact regulations Companies without in-house expertise to address complexity of global customs and trade issues may need to seek outside advisors with specialized knowledge to ensure informed strategic decision-making from both a legal and tax perspective Resources: BDO Talks Tariffs: Your 30 Min Monthly Briefing Webcast SeriesCustoms & International Trade Services
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26:04
BDO in the Boardroom Podcast with Myrna Soto: What Should Be On Today’s Nomination & Governance Committee Agenda?
Key Takeaways:Engaging with Stakeholders: Consider the importance of addressing every inbound inquiry, whether from activists, institutional investors, or shareholders. This involves methodical rigor and balanced engagement to understand and address the underlying concerns.Evaluating Board Performance: Allows for continuous evaluation of board performance, effectiveness, and skills. This includes assessing vulnerabilities and ensuring that the board is equipped to address current trends and macro-environmental impacts.Succession Planning: Nom/Gov committee plays a critical role in defining long-term succession objectives and plans and considering the viability of leadership in multiple levels of the organization for selection, retention, and refreshment/removal of the CEO, C-suite along with the “plus 1’s and 2’s (next level management) as well the board itself. This involves evaluating the needs of the organization and ensuring there are no critical skills gaps.Committee Structure and Allocation: Be accountable for reviewing and optimizing the allocation of responsibilities among all standing and potential other committees of the board. This includes considering rotations and refreshes based on a rationale thought process.5. Corporate Resilience, Culture, and Talent Management: Stress the importance of focusing on the futureproofing of the company by ensuring good due diligence, strong corporate culture, and effective talent management across the organization. This includes considering evolving and shifting regulatory, competitor, and M&A landscapes while integrating new technologies and understanding their impact on people and culture.
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40:45
Post-Election and Corporate Tax Considerations for Boards
To prepare for potential continuation of and/or changes in tax regulations, boards should be taking a vigilant watch and see approach and monitoring respective timing, effective dates and expiration dates: Confer with management to review financial models – e.g., changes in tax rates, deductions, credits, and exclusions. Get regular updates on tax policy changes to anticipate potential impacts on international and global tax strategies. Weigh the more likely scenario that legislative activity taken may allow more permanent actions to extend expiring provisions under current tax laws. Understand the organization's tax risk management policies, focusing on compliance, reporting, and consulting to assess how changes in tax law or procedure could affect the company’s risk profile. Consult with external tax advisors to stay abreast of tax policy changes and ensure coordination with the organization's internal tax team.
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18:19
Board Oversight in Action: Navigating Investigations and Mitigating Penalties
Key Takeaways:The SEC and DOJ are imposing record-breaking financial penalties to hold wrongdoers accountable for misconduct, while also offering credit to those who proactively self-monitor, self-report, and remediate misconduct.As highlighted by recent cases, internal investigation procedures and remedial actions are commonly cited as key factors related to the regulator’s view of cooperation and the determination of reduced penalties. Boards must ensure the company has established protocols and resources to identify, investigate, discipline, and remediate violations of laws, regulations, or company policy. Conducting a timely and thorough internal investigation can demonstrate to regulators the Board’s commitment to compliance, potentially helping to avoid or reduce penalties and support a healthy compliance culture. Where misconduct is identified, the board must determine suitable corrective measures and establish an action plan.Related Resources:Podcast: Audit Committee: Alleged Fraud, Now What?Archived Webinars: The Board’s Oversight of Fraud
BDO in the Boardroom is a podcast series for the board of directors and those charged with governance. Each episode features a topical discussion with board peers and subject matter experts on both trending and timeless boardroom issues – mitigating risk in an increasingly digital world, navigating your board career, financial and ESG reporting, shareholder activism and more.
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