What’s occupying board agendas right now – uncertainty and risk, or on growth?
This article originally appeared in our June 23 edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe here.
As part of our quarterly Director Confidence Index conducted in partnership with Corporate Board Member, we ask directors of U.S. public companies to rate the current business environment on a scale from 1 to 10, with 10 representing the sunniest outlook possible.
How did directors rate business conditions this month? Only 4.4 out of 10. This tepid response raised no eyebrows on our end, especially given that the top three issues on directors’ minds — tariffs, inflation and supply chain disruptions — have been defined by seemingly constant volatility. Meanwhile, 57% of directors still predict a recession in the next six months.
As Joseph R. Bronson, a director on the board of PDF Solutions put it, “You can't forecast anything in this uncertain environment.”
Optimism ahead?
Confidence in the U.S. business environment has been falling throughout 2025. May’s 4.4 rating by U.S. public board members was a drop from 4.7 in March and 6.7 at the beginning of the year.
But here’s the good news: Expectations for the future may be looking up. In our May survey, 40% of directors foresee improved business conditions in the months ahead, up from 36% percent in March. It’s only 4 percentage points, but it’s progress.
Also encouraging: Only 2 out of 10 (21%) of directors surveyed in May believe that conditions will deteriorate further. This is a dramatic change from 4 out of 10 (41%) in March.
“The policy transitions underway will be clearer [by this time next year] — and many will contribute to stronger forecast,” one director explained.
“We need to get through the short-term tariff overhang,” another remarked. “Underlying business activity will strengthen as uncertainty lessens.”
As the world waits for this to happen, how have boards been coping with it all? What lessons do they have to share? Here are some other takeaways from the May 2025 Director Confidence Index:
Takeaway 1: Amp up conversations and innovation
Volatile circumstances demand adaptive governance. To achieve such responsive oversight, 42% of the directors we surveyed want to increase the frequency of their board’s strategy and risk discussions. Just over one third (35%) reported using AI tools for real-time data and risk analysis.
These findings make sense — especially in tandem. As today’s conditions spurs the need for more frequent conversations about risk and strategy, boards are also recognizing the need for real-time data and analysis to support these conversations.
“More boards are realizing that uncertainty is the new norm,” said Brian Kushner, Director at Resideo Technologies, pointing out that “many elements driving this uncertainty have been experienced in the past — just not all at the same time.”
Takeaway 2: Take action in strategic growth and risk mitigation
Given such uncertainty, is now really the right time to pursue growth?
For nearly half of the directors we surveyed, the answer is yes.
- 48% said they’re focused on growth in the second half of this year—despite prevailing uncertainty.
- 39% are addressing two areas most impacted by changing trade policies: supply chain diversification and pricing models.
- 36% reported risk mitigation efforts like reforecasting and scenario planning.
One director called the uncertainty surrounding tariffs “a lot of noise currently with unknowns” while noting the strength of the U.S. economy: “Fundamentals are sound.”
Want to delve more into how U.S. boards are dealing with the current business environment?
We have two resources to help you learn more: May's full Director Confidence Index report and a deep dive into today's challenges of risk and uncertainty.
Want regular access to original research in the field of GRC? Bookmark our Diligent Institute hub page for the latest surveys, podcasts and reports.
Keep exploring
Director Confidence Index: May 2025
Our Q2 polling data with Corporate Board Member finds U.S. public company board members slightly more optimistic in their 12-month forecasts than in Q1, though most continue to expect a recession in the near term.
Director Confidence Index: Navigating risk & uncertainty
As tariffs, inflation and sourcing disruptions grow, our poll finds America’s public-company boardrooms fighting to manage the moment.
Uncertainty and the board: Strategies for turbulent times
In this episode of the Corporate Director Podcast, Brian Kushner, Senior Managing Director at FTI Consulting, explores the complex challenges facing today’s corporate boards.
