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BDI's 2015 Promoting Professional Directorship report reveals that over 40% of GCC board members surveyed would like to see more audit and risk management expertise at the board level
Risk management, along with succession planning, strategy and the role of the chairman, were the topics covered at BDI's Mastering the Boardroom Workshop held this week In Riyadh in partnership with J.P. Morgan
26 November 2015
Following the last financial crisis and with the current economic climate, companies have been paying more attention to risk management. Boards play a crucial role in risk oversight, however, not enough board directors in the Gulf region are aware of and have clear visibility on the top risks facing the company according to the GCC Board Directors Institute (BDI)'s recent survey on board effectiveness.
BDI conducted its Mastering the Board Workshop in Riyadh on 24-25 November in partnership with J. P. Morgan. The two-day program focused on four pillars of high-performing boards; Risk management, the role of the Chairman, strategy and succession planning. David Beatty, Conway Director- Clarkson Centre for Business Ethics & Board Effectiveness and Professor of Strategic Management at the Rotman School of Management along with Peter Breen Partner emeritus & Chair of the Middle East Practice & member of the EMEA CEO & Board of Directors Practice at Heidrick & Struggles were among the leading faculty.
"With low oil prices and regional instability applying pressure on company profits and performance, risk management is an essential component of an effective board. This master class addresses a fundamental objective of the Institute which is to help build board member effectiveness and capabilities through the sharing of best practices and experiences," said Nathalie Potvin, Executive Director of BDI.
"Our research signals that some boards in this region may need to focus on developing their capabilities in the area of risk management," Ms Potvin says. "Boards are responsible for understanding the company management's approach to risk and should take part in the discussions about risk and risk strategy. Our message to GCC Boards is that they need to be proactive in ensuring that the company's risk approach is adequate and effective."
On the eve of the workshop, Mr. Mutlaq Al-Morished, CEO of TASNEE and BDI Governor addressed some of BDI's alumni and workshop participants in regards to the role of the board versus the role of management. Building a strong board - defining the boundaries between Board and Management is part of building a strong board - is an ongoing activity which requires time and hard work from the Board and Management.
The workshop offered seasoned board directors the opportunity to learn from each other and through the analysis of current case studies. The next Mastering the Boardroom workshop will take place next November in Dubai.
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About the GCC Board Directors Institute (BDI)
Launched in 2007, the GCC Board Directors Institute (BDI) is a not-for-profit organization that guides board directors of organizations, from family-owned businesses to listed companies, to acquire the know-how and the tools to reach and sustain effective governance.
BDI is founded by four leading regional corporations - Investcorp, SABIC, Saudi Aramco and Emirates NBD - and it is supported by five advisory firms: Allen & Overy, Heidrick & Struggles, McKinsey & Company, PricewaterhouseCoopers and Hill+Knowlton Strategies, as well as regional regulatory authorities: the Emirates Security and Commodities Authority of the UAE, the Capital Market Authorities of both Saudi Arabia and Oman, the Central Bank of Bahrain and the Qatar Financial Centre Regulatory Authority.
BDI now works with over 550 members who benefit from a network of business leaders and a variety of workshops designed for senior directors. Notably, the Institute hosts an annual Chairman Summit that brings together regional leaders and actors to explore the evolving role and value of Boards as well as appropriate corporate governance standards.
Today the Institute is globally recognized and the only Directors Institute from the region to be admitted to the Global Network of Directors Institute.
We encourage you to visit the Institute's website at www.gccbdi.org to learn more and get involved with the BDI. Or, write to us directly at: getinvolved@gccbdi.org
For media inquiries:
Mira Alrabi, Director, Marketing & Communications
GCC Board Directors Institute
Email: mira.alrabi@gccbdi.org
© Press Release 2015