Directors Australia Board and Governance Specialist, Joanne Peulen shares her insights on trends, focus areas and advice for boards and their directors.
What key trends are you seeing in your work with boards at present?
Many boards are devoting time to consider the part structural measures play in the board performance. In the not-for-profit sector, volunteer boards are finding it hard to attract the types of applicants they need, and so are tackling the question of whether to remunerate board members and if so, what fee structure and level are appropriate. More broadly, as strategies and risk exposures change boards are asking themselves whether their director skills mix and committee structures require realignment.
What do you suggest boards should be focussing on?
Too often I see boards being reactive when it comes to their risk management responsibilities rather than proactive. If you do not feel like the board is genuinely in the driver’s seat when it comes to your business’ risk management and reporting, do something about that. The list of positive duties applicable to directors is steadily increasing.
Do you have any other advice for boards or their directors?
There is so much latent potential in the risk management space. A truly fit-for-purpose risk management framework is one that management and staff alike see as an enabler rather than a burden. Done well, I’ve seen it become a competitive advantage.
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