Tricor & Financial Times Board Director Programme Report Reveals Critical Gaps for Boards in the United Kingdom in Digital Governance, Cybersecurity and Risk Management

Tricor Group and the Financial Times Board Director Programme co-released the inaugural Asia Pacific Board Director Barometer Report, uncovering corporate board sentiments on COVID-19 disruptions globally with a focus on APAC markets compared to samples drawn globally, including the United Kingdom (UK).

According to the 2021 Asia Pacific Board Director Barometer Report:

• Corporate boards globally are struggling to keep pace with rising digital adoption and transformation pressures against the turbulent headwinds of the COVID-19 pandemic.
• Business continuity planning (BCP) and corporate governance, risk & compliance (GRC) are weighing on board directors, rising to the top of corporate board priorities.
• Corporate boards globally are not equipped to support effective hybrid meeting models, which are expected be the most favoured operating model post-pandemic.
• The digital divide is continuing to widen, and corporate boards globally are falling behind, highlighting operational and security risks and inefficiencies
• Gaps in cybersecurity threaten corporate board operations and integrity.

The 2021 Asia Pacific Board Director Barometer Report reveals sentiments and actions of board directors across the globe in key areas of digital transformation, cybersecurity, board operations, corporate governance, risk & compliance (GRC) and business continuity planning (BCP). It is an in-depth survey conducted amongst 771 board directors representing a spectrum of start-ups, small and medium-sized enterprises (SMEs), multinational corporations (MNCs), non-profits and listed companies across 12 major industries. The sampling focuses largely on key markets in APAC (including mainland China, Hong Kong SAR, Malaysia Singapore, Thailand, Vietnam, Japan and Australia) and also incorporates comparative samples from the Americas, Europe and Africa.

Key findings from the report include:

• BCP and GRC pressures are weighing on boards, with an overwhelming 83% of corporate board directors globally and 84% in both the UK and APAC citing these as top priorities. Overall, confidence about the handling of the crisis is mixed. In the UK, 51% of board directors said they feel positive about the way their boards have responded, compared to Singapore (71%), mainland China (68%), Malaysia (56%), Thailand (52%), Hong Kong (51%), Australia, Japan (45%) and Vietnam (42%).

• Triggered by the mass virtualization following COVID-19, data security has emerged as a pressing concern for 83% of corporate boards globally. However, these sentiments have not yet been followed up with corrective action. For example, although 78% of board directors in the UK said data security was an ongoing concern, only 38% said their boards had taken dedicated actions during COVID-19 to improve data security. This disconnect between concern and action was also observed amongst directors globally and in APAC, suggesting that a majority of boards are still operating within inadequate, outdated cybersecurity frameworks.

• Corporate boards in the UK and APAC are resistant to engaging the third-party expertise and solutions needed to solve rapidly emerging challenges. While 60% of directors in the Americas reported their boards would consider engaging third-party expertise to help independently assess GRC and BCP frameworks, the UK and APAC were less receptive with just 46% and 48% of directors, respectively, reporting their boards would consider engaging third-party expertise and solutions.

• Corporate boards are unprepared to meet security and efficiency requirements for virtual meetings – both currently and post-pandemic: The massive shift to remote work models was reflected in the survey results, with board directors globally reporting that meetings went from being 5% virtual pre-pandemic to 5% in-person since the outbreak of COVID-19. However, without the tools needed to ensure security and efficiency, many boards are unprepared to operate in a hybrid format, which will be the most popular meeting format post-pandemic globally. In the UK, 46% of board directors reported that their boards will meet in a hybrid format post-pandemic with an additional 22% reporting their boards will likely meet majority or fully virtually.

• Concerningly, one in four corporate boards are not taking action to transform business to bridge widening digital adoption gaps. To prepare for a post-pandemic future, 73% of directors globally said their boards are actively exploring new digital tools. The UK tracked ahead, with 81% of directors reporting their boards to be exploring new digital tools. Vietnam, Thailand, Japan and Malaysia also surpassed the global average at 92%, 79%, 78% and 76% respectively. However, these numbers tracked lower in Hong Kong (70%), mainland China (68%) and Singapore (67%) indicating that large segments of corporate boards in the region have not adopted the digital board portals, digital governance tools and solutions needed to shift from surviving to thriving virtually.

• Board directors are clamouring for more corporate governance training to increase capabilities: 94% of directors globally said they need more training while just 58% are receiving it. These statistics were exactly matched by the survey’s sample of board directors in APAC. In the UK, 86% of directors said they need more training and just 70% are currently receiving it.

Lennard Yong, Tricor Group CEO, said: “The COVID-19 pandemic has triggered a crisis of epic proportions in APAC and beyond, impacting boards of directors from nearly every organization across all industries. Since the onset of the pandemic, Tricor has received an increasing number of inquiries from organizations looking to fortify board resiliency and adopt digital board governance in the face of ongoing business disruptions. Our expert team, equipped with a wealth of integrated, digital-enabled services and diversified corporate governance solutions, is dedicated to helping boards acclimate in the evolving business environment and thrive in the face of uncertainty.”

Sunshine Farzan, Tricor Group Head of Marketing & Communications, said: “Corporate boards have a fiduciary responsibility to mitigate risk, carefully hedging against catastrophes and outlier events that could overwhelm an organization and threaten shareholders’ investments. But in the face of continuous COVID-19 disruptions, the 2021 Asia Pacific Board Director Barometer Report confirms that board concerns have reached critical mass in cybersecurity, digitization, GRC and BCP. By highlighting impending challenges and outlining key areas for improvement, this report can help boards take the next steps toward business continuity and resiliency.”

John Rowe, Managing Director of Tricor United Kingdom, said: “Since the onset of the COVID-19 outbreak, it has become clear that the best-performing companies are aligning all digitization activity with strong corporate governance standards. However, many boards are still lacking the proper tools, solutions and expertise needed to virtualize operations securely and efficiently. At Tricor UK, we are working with boards to help them understand their unique risk status. By fully mapping out new ways of operating, we are helping boards hedge against the most challenging of circumstances so they can sync innovation, resilience and growth.”

In addition to the proprietary findings, the 2021 Asia Pacific Board Director Barometer Report also features secondary research findings, key insights, industry analysis, focus area recommendations and best practices to help boards better understand how their contemporaries are navigating the ongoing business disruptions amid the pandemic. To access the full report, please visit www.tricorglobal.com/2021-asia-pacific-board-director-barometer-report.

About Tricor United Kingdom

Tricor Services Europe LLP (Tricor Europe) is based in the City of London, the United Kingdom. Tricor Europe offers a comprehensive range of professional services including company secretarial, accounting, payroll and corporate tax advice. In 2012 services were expanded through the acquisition of Woodside Secretaries Limited (renamed Tricor Secretaries Limited) to add a range of corporate administration business lines including registrar, nominee and security trustee services alongside specific regulated offerings through Woodside Corporate Services Limited, which is authorised and regulated by the Financial Conduct Authority in the UK, including custodial and receiving agent services for both Enterprise Investment Scheme Funds and share or securities offers.

Tricor Group (Tricor) is the leading business expansion specialist in Asia, with global knowledge and local expertise in business, corporate, investor, human resources & payroll, corporate trust & debt services, fund administration, and strategic business advisory. Strategically headquartered in Hong Kong, we operate out of 21 countries/territories and across a network of 47 offices. Tricor serves 50,000 clients, including over 1,500 companies listed on the Hong Kong Stock Exchange, ~500 companies publicly listed in Singapore and Malaysia, and over 40% of the Fortune Global 500 companies. With 2,800 employees, we deliver critical functions to help ambitious companies accelerate their growth in Asia and beyond.

Tricor’s advantage comes from deep industry experience, committed staff, technology-driven processes, standardized methodologies, constant attention to changes in laws and regulations and wide industry contacts. Tricor is uniquely positioned to unlock the potential of your business, and help you stay one step ahead of today’s diverse and fast evolving regulatory environment.

To learn more, please visit: https://www.tricorglobal.com/locations/united-kingdom

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