In an increasingly globalised environment, where geographical borders blur and the flow of liquidity knows no boundaries, the role of directors is becoming more challenging as executives find themselves having to deal with a raft of issues that span the company's financial performance.
'There is no formula regarding what constitutes a good or best director. In the ever-changing and demanding role, directors need to understand the impact of globalisation and the ramifications on best practises and corporate governance,' explains Dr Kelvin Wong, chairman of the Hong Kong Institute of Directors (HKIOD).
'With the world changing so rapidly, it is important to keep up-to-date on issues and developments. Someone doing a good job today does not mean they will be doing a good job next year,' adds Dr Carlye Tsui Wai-ling, the HKIOD's CEO.
Globalisation has redrawn the scope for corporate directors, requiring them to draw on a wide set of tools to do their jobs properly. Unlike their peers three decades ago, directors today can no longer focus only on the company's financial performance, management process and the allocation of resources.
They have to take care of a plethora of issues affecting a company, as in today's world they are constantly kept under the scanner by the shareholders.
'With a growing number of local, regional and global stakeholders, each holding the company up to a different set of requirements, directors need to be well versed not only in what is happening at the industry level, but at the regulatory and corporate governance levels and across various jurisdictions too,' Wong says.