Table: Example board skills matrix
Skills Area
Description (Note (b))
Importance (Note (c))
Adequacy (Note (d))
Plans to address gaps / expand skills
Strategy
Ability to identify strategic opportunities and threats, whilst developing and implementing plans to achieve corporate objectives
Leadership
Ability to lead corporate teams and implement plans and policies
Industry knowledge and experience (Note (a))
An understanding of the company’s business daily operations, market development, competitors, technology and innovation
Financial literacy / business acumen
Ability to read and comprehend corporate accounts, financial materials and financial reporting requirements
Risk management and compliance
Ability and experience in implementing, managing or overseeing risk management and internal control systems for legal and regulatory compliance
People management experience
Experience at a senior level with responsibilities for people management and successful implementation of change
Diversity (e.g. age, gender, culture)
Contribution to board diversity in terms of age, gender, cultural background etc.
Emerging topics (e.g. artificial intelligence)
Understanding and knowledge of emerging topics to ensure that the company is forward-thinking
Qualifications
Formal qualifications in relevant fields to assist the board in its decision-making, for example, accounting / finance, economics / business, law
Notes:
Note 1: The relevant knowledge and experience should relate to, and be assessed against, the issuer’s business objectives.
Note 2: The description should enable stakeholders’ understanding of the nature and scope of the skills concerned.
Note 3: The explanation should enable stakeholders’ understanding of the importance and relevance of the skills concerned to the issuer’s business. For example, such explanation may be aided keys defined as follows:
Note 4: Reviews should assess whether the existing level of expertise of a particular skill / qualification is deemed adequate (to be measured against the issuer’s business needs / long-term objectives).
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