In a recent media briefing held by the Institute of Corporate Directors Malaysia (ICDM), president and CEO Michele Kythe Lim emphasized the importance of company boards enhancing their risk management capabilities in the face of global business uncertainties. Lim highlighted the need for boards to work closely with senior management to navigate the rapidly changing business landscape, uphold corporate governance standards, and effectively lead their organizations into the future.
The current business environment is characterized by various challenges, including shifting consumer expectations, climate change, technological risks, geopolitical volatility, and heightened regulatory scrutiny. In light of these challenges, boards, directors, and senior management must collaborate closely, build mutual trust, and align their efforts to successfully address the complexities and uncertainties ahead.
ICDM serves as the national institute of directors for Malaysia, facilitating important conversations on risk management and equipping companies with the necessary tools to navigate the evolving business landscape. The institute aims to set the benchmark for corporate governance standards and provide support for board members and directors to enhance their effectiveness.
Lim stressed the importance of leaders recognizing the need for continuous self-development, staying informed about industry trends, and being proactive in addressing governance issues. ICDM advocates for transformative change in governance practices, including regular external board effectiveness reviews for large companies, as recommended by the Malaysian Code on Corporate Governance 2021.
The institute has observed a growing demand for its Board and Directors Effectiveness Evaluation framework, indicating a heightened awareness among corporate leaders about the need to improve board performance and oversight. By adopting sustainable business practices and considering the broader impact of their decisions on communities and the environment, boards can contribute to long-term organizational success and societal well-being.
In conclusion, enhancing risk management capabilities and embracing proactive governance practices are essential for companies to thrive in an era of change and uncertainty. By fostering strong partnerships between boards and senior management, prioritizing continuous learning and improvement, and aligning efforts towards sustainable business practices, organizations can navigate challenges effectively and drive long-term value creation.