What governance risk arises when a board focuses on short-term results at the expense of long-term viability?

• A. Strategic myopia.
• B. Operational micromanagement.
• C. Budgetary short-sightedness.
• D. Compliance fatigue.

Answer: (A)

Focusing on short-term results at the expense of long-term viability embodies a governance risk known as strategic myopia. When the board emphasizes near-term metrics, management may divert resources toward quick wins and quarterly targets instead of investments that secure future value, such as R&D, talent development, and capability building. This horizon mismatch can erode competitive advantage, weaken long-term resilience, and undermine the board’s duty to steward sustainable value for stakeholders. The board’s oversight should balance immediate performance with strategic direction, capital allocation, and risk management to avoid undermining future viability.

This risk is different from micromanaging day-to-day operations, which concerns meddling in operations rather than long-term strategy. It’s also distinct from budgetary short-sightedness, which is about budgeting processes and their focus, and from compliance fatigue, which relates to burdens of regulatory requirements rather than strategic horizons.