Boards Don’t Need Another Audit Expert. They Need This Instead.

For years, “audit expertise” has been the golden ticket for board seats and for good reason. Financial reporting failures were front-page news, and Sarbanes-Oxley made sure boards got the message: get your financial oversight in order or pay the price.

But today, the biggest risks facing companies aren’t buried in the footnotes of a balance sheet. They’re embedded in third-party code. They’re lurking inside operational shortcuts. They’re moving at the speed of social media, where a reputational crisis can unfold in minutes, not months.

If a board’s risk oversight strategy is still built solely around financial audits, it’s like trying to catch a lightning bolt with a butterfly net. Audit and financial expertise remain vital but they’re table stakes now, not the full game.

The Risk Landscape Has Changed. Board Composition Hasn’t.

Consider the risks that have defined the past decade:

• Cyber breaches that exposed millions of customer records.

• Operational failures that led to public breakdowns in service.

• Third-party vendor collapses that triggered regulatory scrutiny.

• Cultural breakdowns that damaged reputations and eroded stakeholder trust.

None of these risks would have been caught by traditional audit processes alone. And yet, many board nominating committees still focus almost exclusively on "audit committee qualified" candidates, as if financial risk is the only risk worth losing sleep over.

What Boards Really Need: A Broader Definition of Expertise

Today’s high-performing boards are starting to look for something more. They’re seeking directors who bring expertise in:

• Enterprise risk management

• Operational resilience

• Cybersecurity and technology risk

• Regulatory compliance and engagement

• Conduct and culture oversight

These are not "nice-to-haves" anymore. They are essential skills to anticipate, oversee, and respond to the risks that shape an organization's future.

Financial acumen should absolutely remain a core competency for the board but it shouldn’t be the only lens through which directors are selected.

A Simple Question for Nominating Committees:

When the next major risk hits your company and it likely won’t be a balance sheet error, do you have the right voices in the room to recognize it early, respond thoughtfully, and guide the company forward?

If the answer is anything less than a confident "yes," it’s time to broaden the definition of board expertise.

The good news? The talent is out there. Directors who bring a deep understanding of risk, operations, technology, and regulatory expectations, alongside financial expertise, are ready to step in.

The companies that embrace this broader view won't just check a compliance box. They'll build boards that are truly prepared for the risks of tomorrow.