Innovation and digitalisation identified as top boardroom priorities - ICDM chairman
26 Sep 2022 12:13pm
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Citing the Asean ICDM 2022 Board Trends survey, she said the accelerating pace of technological advancement and rising concerns over the environment require intense scrutiny of the value structure of companies in the decision-making process.
"This requires boards to lean into the uncertainty and the complexity and develop the courage to take advantage of change, which is precisely the insights that underlie the theme of this year's summit, ‘The B Factor (Bold + Brave) Boards,” she said in her welcoming remarks at International Directors Summit 2022 virtually today.
The second edition of the International Directors Summit, ICDM’s flagship summit, is a regional platform that brings together more than 30 renowned global speakers and thinkers, to discuss emerging trends and threats affecting boards and organisations.
The summit aims to unleash the "brave and the bold” in leaders and organisations to help them navigate the complex changes in an interconnected world.
She said boards need to embody both of these qualities and equip themselves with the capability to make the necessary changes to achieve growth and build resilience in today's volatile environment.
"That includes re-imagining a workforce and talent proposition in a post-COVID-19 vibrant world and making adjustments to our long-standing board practices.
"Strategies and guidance are essential to creating a sense of shared purpose and a sense of urgency,” she added.
She said boards need to seize opportunities through a transformation - that means disruptions to the business offer new solutions that will yield a positive impact, and drive a necessary change to build and protect businesses.
"We must move forward with solutions, foresight, and drive a culture of sustainability that truly balances the economy with the social, environmental, and governance dimensions that are inextricably linked to long-term success,” she said.
Meanwhile, she noted that global events that unfolded over the past three years, such as the COVID-19 pandemic, geopolitical tensions, supply chain disruptions, and rising inflation have triggered disruptions in organisations' landscape.
"Emphasizing this, more than 80 per cent of the 500 plus directors in a survey by Ernst & Young Global Board Risk in 2021 say market disruptions are becoming more frequent and increasingly impact, but only 30 per cent of boards are confident in their organization's capabilities for effective risk management.
"Similar findings were echoed in a report by the National Association of Corporate Directors where nearly half of respondents say they tend to focus on known risks instead of understanding disruptive risks.
"And less than 20 percent are confident in the ability of the management to address emerging risks. This is clearly a worry to boards,” she added.
She said it is obvious that boards need to be more proactive participants in enhancing the management of risks in an environment that is seeing the risk landscape becoming more complex. - BERNAMA
