Corporate boards in emerging markets are confronting an era of sustained uncertainty driven by geopolitical volatility, economic disruption, technological change, climate risks and evolving societal expectations, according to a new global study.
The report, published by Boston Consulting Group, Heidrick & Struggles and the INSEAD Corporate Governance Centre, found that uncertainty today differs from traditional risk. Rather than being episodic or predictable, uncertainty is broader in scope, faster moving and increasingly driven by “unknown unknowns” that defy conventional forecasting and risk-management approaches, according to the study.
The research, titled “Governing Under High Uncertainty: Opportunities for Emerging-Market Boards,” draws on roundtables and interviews with more than 100 senior directors from emerging markets worldwide.
Compounding pressures
Boards in emerging markets experience a compounding effect of global and local pressures, the study found. International shocks such as geopolitical tensions, trade disruption and technological change do not replace domestic challenges but intensify them, placing additional strain on governance systems that are often still maturing.
Despite these challenges, the report identifies opportunities for improvement. Many boards are reinforcing foundational governance disciplines, such as role clarity, risk oversight and contingency planning, while also paying greater attention to trust, culture and collective behavior.
“In an era of ‘sustained uncertainty’, effective corporate governance depends not only on formal processes, but on board composition and the quality of debate in the boardroom,” said Burak Tansan, managing director and senior partner at BCG and chair of the firm’s Turkey office.
Board composition matters
Tansan said boards that combine diversity, independence and balanced strategic and sector expertise, and are supported by timely, high-quality information, are better positioned to anticipate emerging risks and opportunities. Regularly refreshing board composition in line with strategic priorities is critical to sustaining strong governance, he said.
Jeremy Hanson, partner in Heidrick & Struggles’ Chicago office and a member of the global CEO & Board of Directors Practice, said boards today are operating in an environment where uncertainty is no longer an exception but a defining condition.
“This research underscores the growing importance of governance that combines discipline, foresight, and constructive challenges,” Hanson said. “Creating arenas for constructive debate and decision making has never been more important.”
Beyond the company
The study also points to the distinctive role that boards in emerging markets can play beyond the company itself. By engaging constructively with regulators, policymakers and industry peers, boards can help strengthen governance standards across their markets, contribute to institutional resilience and build trust with stakeholders.
“Governing under high uncertainty and complexity requires boards to move beyond reactive oversight toward deeper learning, dialogue, and engagement,” said Annet Aris, senior affiliate professor of strategy and academic director of the INSEAD Corporate Governance Centre. “By anchoring decisions in purpose and values, while remaining open to diverse perspectives, boards can build the resilience needed to thrive in unpredictable environments.”
Assessment framework
The report concludes with a practical framework designed to help boards assess their readiness for high uncertainty. The framework invites boards to evaluate their governance across three dimensions: hard levers of structure and process, soft levers of trust and behavior, and ecosystem stewardship beyond the firm.
