Business & Money | Tuesday 20 October, 2015 3:03 pm |

The critical factors essential to developing effective Boards in the GCC have been highlighted in the GCC Board Directors Institute (BDI)’s 20th Foundations of Directorship Workshop held in Khobar on 13th – 14th of October in partnership with Saudi Aramco. 

The Foundations of Directorship workshop, a 2-day program specifically designed for GCC board directors, provides a comprehensive overview of the key governance principles underpinning effective Boards.  

The region is undergoing fundamental change with the developments of its capital markets, continuous institutionalization of its family businesses, overall diversification of the economy and a new operating environment with low oil prices changing the reality of conducting business in the Gulf region.  In this kind of environment, Board directors must possess the skills, knowledge and capabilities that will enable them to fulfill their roles and responsibilities if they are to bring value to their respective organizations. 

Research published earlier this year by BDI found that only 33 per cent of GCC Board members surveyed have a clear understanding of their own specific roles, duties and responsibilities. Furthermore, when asked about the Board and executive management roles, only 38% thought the distinction between these roles are clearly understood and defined, with 19 per cent stating they are not. 

Nathalie Potvin, executive director of the Institute, says: “Adopting and exercising effective corporate governance practices has now become a priority for most Boards in the region. This is evidenced, among other things, by the increasing number of Board directors pursuing development programs such as the Foundations workshop. When BDI initiated activities in 2007, development for Board members had a strong negative connotation attached to it. But today more and more board members recognize this as a must.” 

The program featured six fundamental pillars of Board effectiveness:  Board Composition and Director’s Capabilities; Director’s Duties and Liabilities; Board Structure, Processes and Protocols, Delivering on the Roles of the Board, Effective Board Dynamics, Board Performance Review and Renewal. 

Workshop modules were conducted by Heidricks & Struggles, Allen & Overy, PwC, McKinsey & Company and the KSA Capital Market Authority. 

BDI is the pre-eminent institute in the Gulf for Boards and directors, enabling them to become more effective so that organizations may perform better and grow.