Podcast Summary: The Audit Podcast – Ep 269

Title: What's on the Minds of Boards in 2026 w/ Patrick Niemann (EY)
Host: Trent Russell
Guest: Patrick Niemann, Partner, EY Center for Board Matters
Date: December 23, 2025

Episode Overview

This episode, part of an annual tradition, features Patrick Niemann from EY for the third consecutive year to share insights gained from his extensive interactions with board members and audit committees globally. The discussion revolves around what’s top-of-mind for boards and audit committees heading into 2026, with deep dives into uncertainty, the evolving risk landscape, AI governance, cybersecurity, scenario planning, capital strategy, and the impact of tariffs. The conversation distills actionable insights for audit professionals, executives, and board members about governance priorities, best practices, and emerging risks.

Key Discussion Points & Insights

1. Setting the Scene: Patrick Niemann’s Role and Perspective

• Patrick’s role and expertise: 34 years at EY, now Co-Leader of EY’s Center for Board Matters, focused on supporting audit committees and boards on governance and risk oversight.
• Niemann spends significant time directly with board members to understand their concerns and translate these insights into broader strategic guidance for EY clients.
  Quote:
  “In any given year, if I’m doing my job right, I’m sitting in the room with hundreds of board members to let them tell us what’s on their minds…”
  — Patrick Niemann [02:18]

2. The 2026 Boardroom Mindset: Uncertainty & Evolving Risks

• Key theme: Uncertainty is the word that defines boardroom conversations, driven by economic, geopolitical, technological, and regulatory volatility.
• Areas of concern:
  • Evolving economic conditions and ongoing debates about the global outlook.
  • Geopolitical volatility (e.g., Middle East instability, trade relationships, tariffs).
  • Regulatory changes (SEC, PCAOB, new legislative developments).
  • Consistent priorities: Cybersecurity remains perennially top-of-mind, but boards’ AI-related questions have evolved from curiosity to a need for precise understanding and risk management. Quote:
    “Uncertainty is a word that I think is an important one... what does it mean for our risk profile for our companies?”
    — Patrick Niemann [04:23]

3. Technology Risk: AI Governance & Cybersecurity

Discussion (08:06–12:52)

• Boards’ focus: Boards are grouping cybersecurity and AI under the broader technology risk banner but recognize them as distinct, evolving areas.
• Cybersecurity:
  • Boards expect regular readiness simulations—more are engaging directly in tabletop exercises.
  • Expectation for ongoing updates on threat landscapes and company response strategies.
  • Quote:
    “…the boards are getting more involved. And I think that... is there something being done on an annual basis to test their readiness…”
    — Patrick Niemann [08:39]
• AI Governance:
  • Increased desire for specifics: Boards are shifting from viewing AI as abstract risk to demanding concrete inventories of where and how AI is deployed within their organizations.
  • Demands clarity on risk identification, management, and especially implications for financial reporting and reputation. Quote:
    “I just think—think of it as an inventory. Where are we using and deploying AI and what does it mean to me as a board member?”
    — Patrick Niemann [12:24]

4. Approaching New Risks in 2026: Scenario Planning & Capital Strategy

Discussion (13:10–18:44)

• Sector-specific risk: Risks and priorities vary by company and sector, but core risks mirror the overall uncertainty.
• Innovative practice: Scenario planning (including simulations) is increasingly seen as critical for board and management to navigate uncertainties, whether in economic, cyber, or technology domains.
• Capital allocation: Boards are scrutinizing capital strategy, reviewing allocations, and preparing for increased M&A activity.
• Proactive posture: Best-in-class boards define risk appetite, seeking opportunities even in uncertainty rather than adopting a defensive stance. Quote:
  “Single point forecast, that’s just not sufficient going forward and for these times that we’re in.”
  — Patrick Niemann [17:56]

5. Tariffs and Geopolitical Risk

Discussion (19:32–23:13)

• Tariff impact: Landscape is highly fluid; boards bring passion and sometimes political overtones to these debates.
• Survey finding: Even before new tariffs, 85% of CEOs had discussed altering investment plans due to geopolitical uncertainty, with over half delaying investments.
• Action item: Companies must focus on tailored scenario planning, rigorously involving the board for strategic advantage.
• Winners & losers: Changes will create both risk and opportunity—proactive boards will seek to position for both. Quote:
  “There will be winners and losers, right?... Sitting back, letting things happen...I just don’t think that’s the right approach.”
  — Patrick Niemann [21:43]

6. AI Governance: The Next Frontier

Discussion (23:13–29:01)

• Dynamic area: Boards see this as a rapidly developing and complex responsibility, with new AI-related topics emerging regularly.
• Strategic focus: Boards don’t need to know every technical detail but must understand where AI is being used, the specific business implications, and quantify “value at risk” (including economic, reputation, and business continuity aspects).
• Financial reporting: Intensified scrutiny when AI is involved in internal controls or financial reporting.
• Disclosure trends: Upward trend in public and investor demand for AI governance disclosures (mirroring prior focus on cybersecurity). Quote:
  “Boards need to understand the specific implications for their companies...and having that as a regular discussion.”
  — Patrick Niemann [24:29]

7. Parallels Between the Dot-Com Era & the AI Hype

Discussion (29:01–32:44)

• Host observation: Similar to early analytics adoption, buying AI tools is not a strategy; boards must focus on meaningful deployment.
• Patrick’s take: There are clear similarities: massive investment, hype, and the likelihood of both boom and bust outcomes. Trial and error will play out, so prudent, selective risk-taking is key. Quote:
  “They’re going to be things, once again, the different dimensions of AI, some are going to work out in your company, some are not...sitting on the sidelines probably isn’t the answer for most companies.”
  — Patrick Niemann [31:19]

Notable Quotes & Memorable Moments

• On Board Focus in 2026:
  “If there is one word that I feel we’re hearing from...Uncertainty is a word that I think is an important one.”
  — Patrick Niemann [04:23]

• On Cyber Readiness:
  “I'd say that's evolving to a place where not just the companies are doing it, but the boards are getting more involved...test their readiness in a simulation or similar exercise on cyber—that's happening.”
  — Patrick Niemann [08:50]

• On AI Governance:
  “…help me understand as a board member, where are we using and deploying AI? What are the risks associated with it? How are we managing, monitoring, evaluating those risks?”
  — Patrick Niemann [11:38]

• On the Role of Scenario Planning:
  “Scenario planning...and whether that's three things to think about...given the fluidity of the landscape that is out there...a single point forecast, that's just not sufficient going forward.”
  — Patrick Niemann [17:47]

• On Tariffs:
  “There will be winners and losers, right?...You can ask 50 economists, and you’re going to get more than one opinion…just focus on that.”
  — Patrick Niemann [21:43]

• On AI Bubble vs. Dot-Com Era:
  “…there are similarities of the build up, the investment...there are going to be winners and losers and so will there be busts? I think individually, there will be.”
  — Patrick Niemann [30:32]

Timestamps for Key Segments

• [02:18] – Patrick Niemann introduces his experience and unique perspective
• [04:23] – What’s top of mind for boards in 2026: “Uncertainty” and key risk categories
• [08:39] – AI and cybersecurity as top priorities; evolving board involvement
• [12:52] – The changing nature of AI risk and expectations for audit executives
• [13:10] – How boards are tackling new and emerging risks in 2026
• [19:32] – The impact of tariffs and geopolitical risk on corporate strategy
• [23:13] – Deep dive into AI governance: where the boards are now
• [29:01] – Host and guest discuss lessons from the dot-com era applied to the current AI landscape
• [33:21] – Patrick’s closing remarks on the value of board-management discussion

Closing Insights & Advice

• Foster Open Dialogue:
  “Be actively talking...If it’s in your company talking, as a management team, pull that board, that audit committee into the discussion...we just get to better places ultimately and the best decisions possible when you approach it that way.”
  — Patrick Niemann [33:21]

• Pragmatic Action Steps for Audit Leaders:

  • Regularly inventory AI deployment and risk exposure.
  • Engage boards in risk scenario planning; don’t depend on single-point forecasts.
  • Make board-level cyber and AI readiness simulations routine.
  • Ensure disclosure and governance practices are as robust as market expectations.
  • Be proactive in adapting to regulatory, economic, and geopolitical shifts.

This episode is an essential annual “pulse check” for audit and risk professionals, distilling hundreds of boardroom conversations into an actionable roadmap for 2026.