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Boards see many risks, but have confidence in management
Boards are facing a new era of oversight. Directors must evaluate risks and opportunities in real time. The first 100 days of the Trump administration have added further complexity, with shifting policies and regulatory changes challenging long-term planning. Nearly half (47%) of the board members in PwC’s May 2025 Pulse Survey cite economic and regulatory uncertainty among the top 3 barriers to effective oversight.
Even so, boards remain confident in management’s ability to address this turbulence. Ninety-five percent say they’re satisfied or very satisfied with how management is navigating new policy developments (45% satisfied, 50% very satisfied). With strong leadership in place, board members are better positioned to fulfill their oversight roles — so it’s not surprising that 85% feel confident in their ability to provide effective oversight despite ongoing challenges.
Boards eye short-term shocks, stay focused on what’s next
Despite economic uncertainty among the top barriers to their oversight — a concern seen in previous surveys — board members remain vigilant about identifying risks to the business. They see the uncertain macroeconomic environment as the biggest risk to their business, with 85% calling it a moderate or serious risk. They also cite tariff policies, the complex regulatory environment, geopolitical conflicts and aspects of AI.
While responding to these pressures, boards continue to navigate the tension between short-term stakeholder demands and the pursuit of long-term value creation. Shifts in AI and US economic policy are prompting near-term strategy pivots. In response, 72% of board members say their companies plan to or have taken action to increase sourcing from US suppliers, 67% intend to renegotiate pricing with suppliers and 58% are reevaluating their product and market mix. While these moves aim to manage immediate disruptions, they’re also laying the groundwork for stronger, more resilient global supply chains — a priority as risk exposure remains high.
Board members signal growing confidence in management
Amid this volatility, it helps that board members have confidence in who is at the helm. Most are satisfied or very satisfied with how management is navigating new policy developments, assessing both tariff impacts and how geopolitical events may constrain supply chains.
Strong executive leadership is helping boards look beyond short-term turmoil. Half of the board members say they expect the current level of volatility to last less than a year and that 12 months from now there will be more business opportunities than challenges (42%). Seven out of 10 (70%) say they expect long-term benefits from new US trade protectionism.
While even the most seasoned boards can’t see around every corner, it’s clear the moves their companies have taken in the last several months have given them confidence that they are set up for success.
What you can do
- Pressure-test management’s assumptions. Challenge the sophistication of management’s scenario planning. Request tailored scenarios that directly impact board-level concerns such as capital strategy, market exposure, and long-term value creation. Ask management to define triggers, timelines and actions for each scenario.
- Push for enhanced reporting. As risks like tariffs, tax and trade rise to the top of meeting agendas, request in-depth reporting on management’s outlook and risk management plans. Ask for scenario-based risk indicators tied to emerging threats. Request forward-looking dashboards and take steps to ensure that management isn’t just reporting backward-looking data.
- Don’t wait for the next board meeting to engage. Continue to proactively reach out to management to gain their perspectives as events unfold. Consider a standing mechanism, such as mid-cycle briefings, to stay in front of fast-moving developments between quarterly meetings.
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Executive takes on 100 days in: What’s next for business
About the survey
Our latest PwC Pulse Survey, fielded May 1 to May 8, 2025, surveyed 678 executives and board members from Fortune 1000 and private companies about the current business environment, the risks executives are facing and their company’s strategic plans and priorities. Of the respondent pool, 60 were board members.
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