The Board’s Role in Navigating Uncertainty

Uncertainty has become the one constant. Economic volatility, shifting regulations, technological disruptions, and evolving community expectations are reshaping the operating landscape. For mission-led organisations, in health, higher education, biotech, advocacy, and the not-for-profit sector, uncertainty doesn’t just affect financials. It shapes public trust, stakeholder confidence, and the ability to deliver on purpose.

Boards are at the fulcrum of this challenge. They must strike a balance between purpose, governance, and agility. In my work with Chairs, NEDs, and executives, I’ve seen that the most effective boards future-proof themselves by consistently doing three things: asking forward-looking questions, stress-testing leadership capability, and ensuring diversity of thought.

1. Asking the right forward-looking questions

Strong boards spend time looking out the windscreen, not just the rear-view mirror.

McKinsey’s research finds that most boards still devote the majority of their time to compliance and oversight, leaving too little space for strategy and foresight¹. Yet boards that deliberately shift their agenda toward forward-looking issues are better able to navigate volatility.

Some practical questions I see high-performing boards use include:

• What external shifts — in funding, government policy, or technology — could reshape our mission in the next 3–5 years?
• How resilient is our revenue model if a key funder or donor steps away?
• What leading indicators should we be monitoring as early warning signs of disruption?

Reflection prompt: When was the last time your board dedicated a full session to scanning external risks and opportunities, not just reviewing reports?

2. Stress-testing leadership capability

Leadership resilience is as critical as financial resilience. AICD guidance makes it clear: CEO and executive succession planning is a governance responsibility, not a discretionary HR exercise².

But best practice goes further. Boards don’t just plan replacements; they stress-test capability under pressure. Egon Zehnder’s work shows that boards that model “what if” scenarios around leadership transitions are more likely to navigate crises smoothly³.

In my search work, I’ve seen both sides. One NFP board member assumed that their CEO would stay indefinitely. When she left suddenly, the absence of a tested plan caused months of disruption. By contrast, a health board I advised regularly assessed whether its executives had the adaptive capacity to lead through uncertainty. When disruption arrived, they pivoted confidently because leadership readiness had been tested.

Reflection prompt: Does your board know how your leadership team would perform under sudden stress? Have you run the scenario, or just assumed resilience?

3. Ensuring diversity of thought at the board table

Homogeneous boards tend to see the world in the same way. Diverse boards are more likely to challenge assumptions and identify risks and opportunities others miss.

A global MSCI study found that companies with at least 30% female directors achieved 18.9% higher five-year cumulative returns — while cautioning that this is a correlation, not causation⁴. In the nonprofit sector, BoardSource’s Leading With Intent report highlights that boards lacking diversity rate themselves lower on strategy and external engagement⁵.

For mission-led organisations, this is not just an equity issue. Diversity of thought is a governance asset. It makes boards sharper, more resilient, and better able to reflect the communities they serve.

Reflection prompt: Does your boardroom reflect the diversity of the community you serve — in skills, perspectives, and lived experience?

Conclusion

Uncertainty isn’t going away. The boards that thrive are those that prepare themselves to adapt, not by predicting every future scenario, but by strengthening their governance.

By asking the right forward-looking questions, stress-testing leadership capability, and ensuring diversity of thought, boards move from reactive to resilient.

At Brooker Consulting, we see first-hand the difference a forward-thinking Chair or director can make to organisational resilience. If you’re looking for the right chair/director of your organisation, contact us today. Our tried and true search methodology will connect you with the right visionary leader. 

Endnotes / Sources

1. McKinsey & Company – Building a Forward-Looking Board (2023).
2. Australian Institute of Company Directors (AICD) – Director Tool: Succession Planning.
3. Egon Zehnder – CEO Succession Planning Best Practices.
4. MSCI – Women on Boards and Beyond 2024.
5. BoardSource – Leading With Intent 2021.