Ninety percent of board meetings globally went online due to remote work schedules during the current pandemic, compared to only 5 percent before COVID-19, the 2021 Asia Pacific Board Director Barometer Report said on Wednesday.
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An integrated meeting trend is likely to continue into a post-pandemic world, according to the report which was based on a survey of board directors representing 771 global organizations across a broad spectrum of industries to identify key themes impacting corporate governance. The survey was conducted by the Tricor Group, an international corporate services company based in Hong Kong, in partnership with the Financial Times Board Director Programme.
Fifty-four percent of board members who participated in the survey said they expect hybrid meetings, with in-person and virtual options, to become the norm
Fifty-four percent of board members who participated in the survey said they expect hybrid meetings, with in-person and virtual options, to become the norm. In Hong Kong, the percentage is slightly higher at 57 percent, with 27 percent skewed toward in-person and 16 percent to virtual meetings.
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“Amid business disruptions, lockdowns, travel restrictions and health concerns around gathering in groups, the COVID-19 pandemic has forced companies to reconsider board engagement,” said Sunshine Farzan, head of marketing and communications at Tricor Group.
Virtualization was affected by differences in how countries have managed the pandemic and applied restrictions. “Hong Kong, where shutdowns were fewer, reported lower rates of virtual meetings (62 percent) than in Singapore (70 percent),” Tricor said.
The trend toward hybrid meeting models could increase board efficiencies, the group said. “New hybrid models offer the benefits of both in-person and virtualization, so boards get the best of both worlds,” Farzan said.
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In the transition to a more digital world, three-quarters of participants globally said the pandemic had forced boards to explore digital tools while more than 60 percent said they have found effective tools. Zoom topped the list of those tools. Cybersecurity was among the major concerns when adopting a digital tool with more than 70 percent reporting that they were in favor of using an online encrypted system for board documents and operations. “In these times of uncertainty, digital transformation can mean the difference between businesses surviving, thriving or shuttering,” said Zhang Hailiang, CEO at Tricor Mainland China.
The survey found business resilience and risk management to be among the key strategic highlights for board members globally with 87 percent saying that boards should be prioritizing business continuity planning and governance, risk management and compliance in a post-pandemic world. The new areas were brought into focus due to pandemic-induced uncertainties in the market environment and business operation.
xinlanzeng@chinadailyhk.com