Riyadh – Saudi Minister of Energy, Industry, and Mineral Resources Khalid al-Falih urged chairmen and board of directors of GCC to uncover solutions for the sake of overcoming the challenges faceing non-profit institutions caused by economic pressures and globalization.
Speaking at the 4th Summit of the GCC Board Directors Institute (BDI), Falih stressed that the role of the board of directors is to focus on three main elements: setting strategies, risk management and governance, and managing business.
He added that effective governance is a key element that helps institutions succeed. The minister pointed out that laws and regulations are important but do not substitute good governance. He added that companies should focus on work ethics, conflict of interests, integrity, and responsibility for better performance.
“Board membership is no longer an honorary position. Holding a directorship demands responsibility and accountability to all. It is a crucial time of social change in a changing world and that places the focus on board directors to uphold the highest standards of corporate governance and to put in place the right systems and processes to deliver change,” Falih commented.
More than 60 high-profile chairmen and board directors from across the GCC were brought together at the 4th Chairman Summit organized by Saudi Aramco and the BDI.
The summit, held on Sunday in Riyadh, was also attended by expert panelists who came to exchange views on the current issues facing leadership and best practices under the theme “Leading the board through changing times”.
Falih also addressed the current financial issues and added that boards of directors are now monitored by people even more than before, which means that companies should expect to be held accountable for their actions.
The minister explained that Vision 2030 is a good example on a comprehensive reform program that is expected to make a shift in the economic situation of Saudi Arabia.
GCC BDI is the preeminent not-for-profit institute in the GCC with a focus on helping boards become more effective so that organizations perform better and grow.