This article originally appeared in our March 26th edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe here.

After closing out 2025 on a relatively upbeat note, U.S. public company directors began 2026 with a more tempered outlook. In our latest Director Confidence Index, conducted in partnership with Corporate Board Member, respondents’ assessment of current business conditions slipped from 6.0 to 5.6 on our 10-point scale, while their 12‑month outlook decreased from 6.0 to 5.5.

Directors are trying to make sense of a macro environment that feels increasingly unsettled. Those bracing for deterioration point to a familiar but potent mix of pressures: Tariffs and trade policy, debt overhang, inflation, regulatory uncertainty, and escalating geopolitical risk — including the war in Iran and rising unemployment.

At the same time, optimism hasn’t disappeared. Some point to tailwinds from tax legislation, resilient consumer spending and what they still view as a fundamentally “good economy.” Taken together, the data reflects a moment where boards aren’t short on signals — they’re forced to weigh competing ones. What stands is the link between boardroom confidence and governance readiness. Nearly three-quarters of directors (73%) say their board is quite or very confident it is equipped to oversee the risks and opportunities ahead. That difference shows clearly in how they rate the environment: Those who feel ready rate current business conditions at 5.8 and the year‑ahead outlook at 5.7, compared with 4.8 and 4.7 among peers who don’t — a full one‑point gap on our scale.

Steadier boards aren’t guessing better. They’re preparing better.

Four ways confident boards are strengthening risk oversight

The data points to four keyways confident boards are actively strengthening risk oversight:

1. Turning to outside experts to challenge assumptions

35% have brought in outside experts in the last few years to help evaluate emerging risks such as AI and cybersecurity.

2. Seeking stronger signals from management, not more reporting

32% have asked management for more robust, forward-looking risk data and reporting.

3. Using technology and AI to see risk sooner

22% report implementing new risk monitoring tools and dashboards — including AI‑enabled tools.

4. Re-examining oversight structure at the board level

18% say they’ve recently created a dedicated risk committee outside of audit, while 24% report moving risk oversight back to the full board.

Where boards still see gaps in risk oversight

But even confident boards see gaps

When asked where they would focus first to improve risk oversight, directors consistently cite areas where visibility still feels incomplete: Better tools and information to track the external environment, deeper access to external expertise and education and a stronger grasp of macroeconomic, regulatory and market dynamics.

That recognition is already reshaping how directors think about board composition. Asked whether they had recruited to fill a specific skills gap in recent years, 27% said they had recruited a technology or AI expert — an indication of where boards feel least equipped as risk grows more complex.

In a volatile environment, boards can’t control the noise, but they can control the signal. This quarter’s Director Confidence Index suggests that boards investing in better data, sharper oversight structures and deeper expertise aren’t just feeling more confident, they’re navigating uncertainty with far greater assurance. In a world defined by shocks, governance quality is fast becoming a leading indicator of resilience.

Read the full results here.