From risk to strategy: The governance agenda for 2026
This article originally appeared in our December 18th edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe here.
As we close out 2025, I’ve been reflecting on what this year taught us and the word that comes to mind is “unprecedented.” Insights from the Diligent Institute’s research show how directors navigated multiple unprecedented challenges – often simultaneously – while also driving major change. The lessons we learned this year aren’t just a look back. They can be a compass pointing to the directional shifts boards will need to embrace as governance moves into a faster, more AI-enabled era.
Here's how I see the lessons of 2025 shaping governance strategy in 2026.
Five governance shifts boards must prepare for in 2026
1) Active oversight takes center stage
What will change: Boards will move beyond passive reporting and lean into more real-time, AI-powered decision making. Predictive analytics and scenario planning will become part of everyday conversations, helping directors navigate volatility before it hits.
Why? Director confidence hit historic lows in 2025. Our Director Confidence Index, conducted in partnership with Corporate Board Member, landed at just 4.8 out of 10, among the lowest since the pandemic. That’s a wake-up call for faster, smarter decision-making. If you’re curious whether sentiment is shifting, our Q4 results will be live by the time this issue hits your inbox. Check them out to see if optimism is making a comeback.
2) Continuous assurance becomes the norm
What will change: Dashboards won’t just summarize risks. They’ll surface them within hours, and crisis protocols will kick in during the first 72. AI-powered assurance will scan massive datasets to catch anomalies as they happen, and directors will be able to ask complex questions in plain language and get instant answers. Oversight will move from reacting after the fact to staying ahead of the curve, a fundamental change in risk management.
Why? Risk levels soared in 2025, with GCs rating them 7.9 out of 10. Quarterly updates aren’t enough anymore. Boards need early-warning systems and integrated intelligence to keep pace.
3) AI governance moves to the top of the agenda
What will change: Agentic AI is moving fast, from assisting to acting. Boards will need to build AI literacy, test for bias and keep humans in the loop to manage less visible risks.
Why: Two-thirds of directors used AI tools in 2025, but only 22% had policies in place, a gap we saw globally. In our APAC Governance Outlook report, 57% of respondents said their organizations had deployed AI in one or more areas of the business, but only 36% had audited usage.As AI deployment climbs higher on the priority list for 2026, closing this governance gap is critical.
4) Integration becomes a growth essential
What will change: M&A ambitions will stall without tech integration. Boards that prioritize scalable platforms will unlock faster, cleaner transactions and reduce risk during rapid growth periods as integration readiness becomes a board-level KPI.
Why: In 2025, our Transaction Readiness report, conducted in partnership with Wilson Sonsini and NetSuite, found only 4% of organizations had fully integrated GRC and financial systems.
5) Strategy gets a future focus
What will change: Board agendas will shift toward forward-looking conversations powered by predictive analytics and cultural insights. Directors will widen their lens beyond financials to include culture and workforce resilience, using anonymized data to spot risks before they surface.
Why: The ability to anticipate, not just react, will define effective governance in 2026. Boards that lean on AI-driven scenario modeling and continuous feedback loops will stay aligned with fast-changing realities.
Turning 2025 board lessons into a 2026 action plan
2026 will reward boards that act, not just react. That means pairing human judgment with AI-driven foresight, embedding continuous assurance and integrating systems for scalability. Governance is moving from static to dynamic – and the boards that thrive will be ready to keep pace.
Want a deeper dive? Check out the full blog on trends shaping governance in 2026.
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