In 2025 we are likely to see a continuation of the same issues afflicting companies in 2023-24:

• Deteriorating economic conditions, increasing cost pressures (as a result of persistent inflation and lower AUD) and disruptions to critical supply chains
• Rising costs of energy and insurance
• Domestic and international politics (particularly in the US) and the potential threat of a cold war (or an actual war) in the pacific
• Regulatory reform (or rather the lack of it in some cases)
• Cybersecurity threats (building resilience and data protection)
• Impact of AI and disruption to existing business models
• Climate change, mitigation and climate-related disclosures
• Sustainability
• Diversity, equity and inclusion (although potentially less pressing compared with some other challenges)

Boards will need to be mindful of these when setting strategy and approving ‘defining moment’ transactions.

References

https://www.nacdonline.org/all-governance/governance-resources/governance-research/outlook-and-challenges/2025-governance-outlook/preparing-for-five-crucial-board-balancing-acts-in-2025/

https://www.governanceinstitute.com.au/news_media/a-directors-roadmap-to-2025-governance-institute-launches-board-of-the-future-report/

https://www.diligent.com/en-au/resources/blog/corporate-governance-trends

https://www.forbes.com/sites/michaelperegrine/2024/12/30/top-10-governance-and-leadership-trends-for-2025/

https://www.thecorporategovernanceinstitute.com/insights/news-analysis/board-planning-2025-ten-things-directors-should-think-about-now/?srsltid=AfmBOor_OFmJ7CvaCSRlD6dyI2S0DJSJFhUcaB2IhYWciywcnleEsmLu