What governance improvement is needed when a board lacks diversity of skills and perspectives?

• A. Board composition review.
• B. Succession planning.
• C. Conflict of interest policy.
• D. Policy for stakeholder engagement.

Answer: (A)

Having a board with a broad range of skills, experiences, and perspectives is essential for effective governance. When gaps exist in the board’s expertise, a targeted assessment is needed to see who sits on the board, what competencies are present, and where there are missing capabilities. A board composition review does exactly this: it analyzes the current mix of members, identifies missing or underrepresented skills and viewpoints, and guides actions to refresh or expand the board—such as bringing in new members, adjusting roles, or refreshing terms—to create the right balance for guiding strategy and overseeing risk.

Succession planning focuses on preparing for leadership changes and ensuring continuity, which is important but broader than directly addressing current skill gaps. A conflict of interest policy regulates how conflicts are disclosed and managed to maintain integrity, not the diversity of skills. A policy for stakeholder engagement covers how the board interacts with and communicates to stakeholders, rather than shaping the mix of competencies on the board.