Corporate governance: Key trends & insights

We sit down with Chris Mayfield, Head of Business Development for Corporate Services in EMEA, Ocorian, to discuss the latest trends and changes he has seen in the world of corporate governance. 

How important is corporate governance in the finance world? 

Chris Mayfield: Corporate governance plays a major part in the financial performance of a company. Having a governance framework in place sets out a structured set of behaviours, that will be adhered to (at the very least at board level) to assess, plan and adapt to risk, to regulation and to other internal and external pressures. 

It ensures companies are able to embrace changing market conditions within their strategy to gain an advantage on their competitors, rather than being reactive which inevitably leads to inefficiencies within the business. 

How have you seen businesses adapt to the requirements of corporate governance in recent years? 

CM: We have certainly seen corporate governance rise in importance with boards in recent years. There is a realisation now that adherence to a good corporate governance framework is a tool for growth – perhaps not directly, but in terms of enabling better communication and decision making, improving culture and employee morale, (which drives productivity), being better prepared for risk and being more appetising as an investment proposition. 

This realisation has led to boards becoming more responsive to corporate governance developments, more inclined to adopt a best practice approach (rather than tick a box) and more likely to engage with an external service provider to ensure they are doing it right. 

What has been the most important change in the corporate governance sphere recently? 

CM: Technology advancements are certainly changing the game. Electronic board portals allow for the secure and efficient dissemination of board packs. Speech recognition tools allow for the potential streamlining of the very time-consuming minuting tasks, video calling technology has allowed for remote board/committee meetings and as we move forward, I am sure AI and Blockchain will have a significant as well. 

What further changes do you see on the horizon? 

CM: From a regulatory perspective – we would expect to see more of an alignment around governance requirements across the globe. We would also expect to see a trend of companies taking governance more seriously at an earlier stage in their cycle. 

From a technological perspective – we expect AI to become a tool to facilitate horizon scanning, decision-making, policy drafting and risk management. 

Where does Ocorian see itself in the corporate governance industry in five years’ time? 

CM: As a leader of course. Ocorian is heavily focused on employing and developing the best people and technology to deliver a truly unrivalled client experience. But that alone is not enough. We want to lead by example, demonstrating excellent governance and compliance within our organisation – and we want to utilise our knowledge and experience is this area differentiate ourselves from the competition. We want Ocorian to be synonymous with good governance and for companies who value good governance, to come to us. 

For more information on how Ocorian can help you with your corporate governance requirements, contact Chris Mayfield at [email protected]