(*) Let's not forget that the Board's role is adding value.

Concerns about C19:

• Long-term sustainability of the business model

• Challenges the nimbleness and adaptability

• WEF: prolonged global recession is the main threat in the next 18 months

• Thoughts:

• Not all businesses shrank; online ordering and delivery grew a lot

• Key competitors are joining forces to fight for the industry together

Board-C-Suite Dynamics

• Short term: support the management and help make difficult decisions

Priorities: safety, costs, business continuity, including rapid changes in the business model

• Long term: get back to growth

• The management has to have an evolving business continuity plan communicated to the Board.

• Board Agenda:

Staff and their families’ health

Staff financial security

• Can’t ignore financial commitments and expenses as revenues fall.

Make sure there’s enough cash/loans/etc [not trading while being insolvent]

• Current pandemic is not described in any books, hence both the CxOs and the Board have to be adaptable and pragmatic.

• Look for changes in business model and for scenarios.

Management Capacity

• Board helps with navigating the uncharted territory and making hard decisions [supposedly, related to cuts of people and projects]

• Much more frequent board meetings

• Leadership starts and finishes with an understanding of who your team is and maximise their skills and talents

• Boards present the most value when it provides critical oversight, long-term planning and strategic support

Lessons from the pandemic

• What have we learned? What will we do better next time?

• How must the company change? (incl. people and the ways to do things)

• What opportunities are there (e.g. acquisitions)

• How does the board consistently be a source of inspiration and guidance to management, without attempting to do their job

Ways of working, strategy and governance

• WoW [ways of working]: some companies’ business continuity plans (BCP) involve work from home

Many risk managers didn’t take this seriously.

• Board: put the BCP into the risk management agenda —> management starts taking it seriously

• Strategy: many companies refuse to change the old ways (which must’ve been on the agenda for a while), incl. extra investments and recalibration of staff skill sets

• Governance:

Singapore: strong reserve accumulated over years

For companies: update the dividend policy towards building reserves

Conclusions

• Prepare for the post-pandemic future

• Conserve or enhance the capability of companies to rebound strongly

• Don’t forget to lift the staff morale