Essential Directors Update 2025 highlights

When the 2025 Essential Directors Update (EDU) roadshow rolled into Sydney on October 21, it was the last stop in a 15-venue series.

In his opening remarks, Mark Rigotti GAICD, AICD managing director and CEO said the EDU helps members navigate an increasingly difficult and shifting external environment.

“We’re proud to say that more than 59,000 people came to our courses, webinars and events last year,” he said. “We also released a range of resources this year, from Data Governance and AI Governance to an updated version of Not-for-Profit Governance Principles.

”He touched on the AICD’s commitment to helping lift Australia’s productivity levels.

“According to our Director Sentiment Index, which we run twice a year, directors now rank productivity growth as the most important issue for the federal government to address, both in the short and longer term. The AICD will continue to make sure productivity doesn’t drop off the Cabinet table.”

She stressed that a climate transition plan now constitutes a business imperative. “Transition planning must be integrated with core business strategy and operational market risks as well as reporting and disclosure risks,” she said.

On the topic of generative AI, she highlighted the challenge of striking the right balance between encouraging innovation and managing risks.

“Be aware of where and how AI is being used in your organisation and ensure you have guardrails that don’t stifle innovation and productivity,” she said. “Keep an eye on the regulatory space, but make sure ethics and safety remain front of mind.”

She pointed out that effective use of organisational data is a significant business enabler and a source of competitive advantage.

“Organisations and leaders who don’t use and share data and take advantage of the analytical and predictive firepower of AI will get left behind,” she said.

She also cautioned that cyberattacks are a case of “when” rather than “if”.

“Expect to have an incident, be prepared and have a crisis plan in place,” she said. “The best defence is to stay informed, know your information assets or crown jewels, know where your vulnerabilities are, agree on your risk appetite, have appropriate controls and get external assurance on those controls.”

Reassessed board principles

Bruce Cowley FAICD, non-executive director of the Australian Retirement Trust and chair of Queensland Trust for Nature, focused on principles of good governance that have come under pressure or been reappraised in the past year or two, beginning with the board review process.

“Boards generally understand the importance of the review process, but don’t always provide thoughtful and insightful responses to the questions asked of them,” he said. “It’s essential directors are more honest and show more willingness to critique the conduct of others. The flipside of that, of course, is they will need to be more self-reflective and respond positively to critical feedback from others.”

He then referred to APRA’s conclusion that board agendas tend to be overweight on operational matters, sometimes at the expense of strategic issues.

“We’re all well aware of the difficulties we face with over-long board packs that may take many hours to read, but the board can control the information it receives,” he said. “When a non-executive director gets complex papers, why don’t they ask management what on earth they expect them to do with that? You can tell them they need to do better because you want to fulfil your obligations as a director and want information provided to you in a format you can master.”

Sleepless nights

Donna-Maree Vinci GAICD, whose non-executive directorships include NGM Group, Hunter Water Corporation and Western Sydney Airport, joined Bingham-Lee and Cowley on stage for a panel session with questions from the audience. The final question was for each panel member — what keeps you awake at night?

Vinci is most concerned about climate — not just physical and transition risks but also adaptation.

“I wonder what’s happening in our communities,” she said. “How are they adjusting to challenges like water scarcity and excessive heat? We have a societal responsibility in those areas.”

For Cowley it was AI — the greatest opportunity, but also the greatest risk.

“We’re starting to understand the opportunity, but I’m not sure we fully understand the risks,” he said

Bingham-Hall’s nights are disturbed by concerns about leadership.

“What kind of leadership do we need in this new world and do we have the right team doing the right thing?” she asked. “It’s always the people issues that worry me most.”