Board skills matrix

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:

“E” = essential skills that should currently be in the board’s possession
“F” = skills that should be acquired for future purposes / in light of anticipated emerging needs
A/D = skills that are not necessary but desirable or aspirational in nature

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).

Purpose

A board skills matrix should display the board’s collective experience, skills, qualifications and expertise, and connect these with the issuer’s long-term strategy and particular goals, including its diversity targets. While the matrix is not intended to single out individual directors, it should allow shareholders and other stakeholders to understand the mix and adequacy of the board’s skills and assess the alignment with the issuer’s objectives.
This mapping exercise enables the issuer to identify, in particular, any gaps in existing board skills for the purpose of any planned expansion or change in the issuer’s objectives. This provides useful insights to the nomination committee (or the board) to consider board refreshment and succession planning, or any enhancement of the existing skills and qualifications of the board.

Disclosure requirements (with example skills matrix)