In the current landscape of uncertain macroeconomic conditions characterized by inflation, geopolitical instability and sweeping regulatory changes, organizations are increasingly recognizing the importance of having a sound and resilient board.
A comprehensive board evaluation process is imperative for the sustainable success of any organization. The key benefits of conducting board evaluations include:
- Enabling stakeholders to hold individual board members accountable for their actions and decisions, building more trust within the organization
- Identifying improvement opportunities in board operations leading to more effective decisionmaking, improved strategic planning and organizational performance
- Addressing gaps in diversity on the board (skill sets, gender, nationality, age, etc.) to support decision-making and improve stakeholder engagement
- Enhancing transparency amongst board members and management and exchanging constructive feedback to establish a favorable board culture and dynamics
The Capital Market Authority (CMA) in Oman has issued corporate governance regulations and guidelines that require listed entities, financial institutions, insurance companies, and government entities to perform board evaluations every three years.
These requirements are in line with leading global practices and support the long-term sustainability of organizations.
