TORONTO, Nov. 27, 2015 /PRNewswire/ - The Global Network
of Director Institutes (GNDI), the international network of
director institutes, has issued new perspectives papers on two
governance issues that have dominated the board agenda globally
this year.
"In the last 12 months, discussions have focused on the changing
role of the board to be more resilient against cyber threats and
address expectations regarding performance, culture and board
diversity through renewal," said Stan
Magidson, Chair of the Global Network of Director Institutes
and President and CEO of the Institute of Corporate Directors,
Canada. "These are global issues
and members of GNDI have issued global recommendations for boards
to consider."
In the first paper, Guiding Principles for Cybersecurity
Oversight, GNDI proposes three areas of focus: people, processes
and technology. Likening cybersecurity to the "fourth estate", the
global network says that cybersecurity falls outside the
traditional borders of oversight, accountability and control, and
therefore requires a new approach.
The organisation is calling on boards to consider placing
cybersecurity as a specific accountability of one of the officers
reporting to the board, to inform themselves of specific
operational, reporting and compliance aspects of cybersecurity, and
lastly to consider adding a member with some knowledge of
information technology (including digitalization and
cybersecurity).
In the second perspectives paper, Renewing the Board, GNDI
advocates for a performance management approach to board
renewal to create long-term value and argues that the board should
disclose these policies and processes to its shareholders and other
stakeholders to allow for better engagement with these groups. The
paper also argues that boards should cast a wide net when adding or
replacing a director and should consider the need for diversity of
thought, skills and experience on the board when considering
appointments.
The paper further highlights that while term limits can act as a
backstop against excessive tenure length, they should not be the
only renewal mechanism used by boards as they can have the effect
of substituting for difficult conversations with underperforming
directors or can lead to the replacement of effective
directors.
The policy perspectives on cybersecurity and board renewal are
available for download at www.gndi.org.
GNDI is an international network of 16 director institutes and
was established in December 2012 to
foster closer cooperation between its members, who are each
recognized as the primary institute for directors and governance in
their respective country.
The following organisations are members of GNDI:
- Australian Institute of Company Directors (AICD)
- Brazilian Institute of Corporate Governance (IBGC)
- European Confederation of Directors Associations (ecoDa)
- GCC Board Directors Institute (BDI)
- The Hong Kong Institute of Directors (HKIoD)
- Institute of Corporate Directors (ICD), Canada
- Institute of Directors in New
Zealand (IoDNZ)
- Institute of Directors in Southern
Africa (IoDSA)
- Institute of Directors (IoD) in the United Kingdom
- Malaysian Alliance of Corporate Directors (MACD)
- Mauritius Institute of Directors (MIoD)
- National Association of Corporate Directors (NACD),
United States.
- Pakistan Institute of Corporate Governance (PICG)
- Singapore Institute of Directors (SID)
- Swiss Institute of Directors (SIoD)
- Thai Institute of Directors (TIoD)
SOURCE Institute of Corporate Directors (ICD)