{"id":10812,"date":"2020-10-30T12:29:19","date_gmt":"2020-10-30T10:29:19","guid":{"rendered":"https:\/\/cgpa.com.ua\/?p=10812"},"modified":"2020-11-03T12:42:47","modified_gmt":"2020-11-03T10:42:47","slug":"transformatsiya-roli-rady-v-period-pandemiyi-covid-19-kryza-tse-zagroza-chy-mozhlyvist-zmin","status":"publish","type":"post","link":"https:\/\/cgpa.com.ua\/en\/novini\/transformatsiya-roli-rady-v-period-pandemiyi-covid-19-kryza-tse-zagroza-chy-mozhlyvist-zmin\/","title":{"rendered":"Transformation of the Board\u2019s Role during the Covid-19 Pandemic: Is crisis a threat or an opportunity for change?"},"content":{"rendered":"<p><\/p>\n<p style=\"text-align: center;\"><iframe loading=\"lazy\" width=\"560\" height=\"314\" src=\"\/\/www.youtube.com\/embed\/BfvOutXWryc\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p style=\"text-align: right;\"><span style=\"color: #ff0000;\"><em>We&#8217;re not going back to the way it was before.<\/em><\/span><\/p>\n<p style=\"text-align: justify;\">The Corporate Governance Professional Association (CGPA) continues a series of online conferences on the activities of Supervisory Boards. On <strong>October 27, 2020<\/strong>, the Fourth Directors&#8217; Online Conference was held. The topic was <strong>&#8220;Transformation of the Board\u2019s Role during the Covid-19 Pandemic.&#8221; <\/strong>At the initiative of the discussion moderator <strong>Oleksandr Okuniev<\/strong>, Chairman of the CGPA Management Board, the participants returned to the discussions on the role of the Boards during the crisis, which began at the First and Second Online Conferences, to understand whether the predictions worked; if they are still relevant, whether there are new ideas, a new vision of problem-solving, and so on. The questions that O.\u00a0Okuniev asked during the discussion to each speaker were the following:<\/p>\n<ul>\n<li style=\"text-align: justify;\">What were the priority decisions of (your) Board after the quarantine was launched? Which ones worked and which were later revised?<\/li>\n<li style=\"text-align: justify;\">How has the organization of your Boards changed over the last six months?<\/li>\n<li style=\"text-align: justify;\">Are the relations between the management and the Boards (members of the Boards) changing in crises? What specific requirements (tasks) on strategic issues should the Board set for management in a crisis?<\/li>\n<li style=\"text-align: justify;\">How should the Board respond to the fact that the crisis affects a seemingly carefully crafted and agreed vision for the company&#8217;s development? How do you plan now (what is the planning horizon)?<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Several abstracts from the participants of the discussion:<\/p>\n<p style=\"text-align: justify;\"><strong>Taras Kyrychenko<\/strong>, Member of the Supervisory Board of Oschadbank; member of the National Registry of Corporate Directors:<\/p>\n<p style=\"text-align: justify;\">\u201cIs the role of the Board being transformed? The role of the Board is always, in fact, the same; the methods of Boards\u2019 work are changing. The Board is adjusting to being adequate to the situation that develops during a crisis, a pandemic. The new situation forces the Boards to become more adaptable to new economic, regulatory, and organizational challenges. Our Board has stopped doing some insignificant things, and more efforts have been made to focus on key things.\u201d<\/p>\n<p style=\"text-align: justify;\">\u201cThe client has changed, and companies sometimes lack the ability or courage to go and ask what has changed in the client. Customers want something different; they need to understand, accept, and find new solutions.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>Oleg Zhuravlov<\/strong>, Deputy Chairman of the Supervisory Board of JSC Ukrzaliznytsia, Chairman of the Supervisory Board of PJSC IC Krona, Advisor to the Minister of Infrastructure of Ukraine; Tutor of the Corporate Director Program:<\/p>\n<p style=\"text-align: justify;\">&#8220;An anti-crisis department was created in the company; it fully justified its creation. The board members did not head this department, but they cooperated very closely and received a lot of useful information based on making decisions. The established internal risk management proved to be an essential and useful tool of the Supervisory Board. &#8220;<\/p>\n<p style=\"text-align: justify;\">&#8220;Regarding the change in the organization of the Supervisory Board&#8217;s work, the Board continued to review more meticulously the weekly financial statements of the departments on which the liquidity of the company depends; liquidity suffered greatly due to the termination of passenger rail service.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>Timur Bairov<\/strong>, Chairman of the Kazakh division of Bitfury Group, Chairman of the Supervisory Board of Bridge Group, Member of the Supervisory Board of Astana Startup Hub; Tutor of the Corporate Director Program:<\/p>\n<p style=\"text-align: justify;\">&#8220;We are continuing our scenario planning. We have five scenarios and calculated budgets for each scenario. The approval of scenarios and budgets for them greatly simplifies the company&#8217;s effective operation when it is necessary to implement a particular scenario. There is no need for a long process of approval of financial costs.<\/p>\n<p style=\"text-align: justify;\">In Kazakhstan, the corona crisis has been a trigger for change and innovation. Some drastic and innovative decisions have been made at the state level, for example, due to falling oil prices. Looking for what Kazakhstan can do and what to earn, the government decided to attract digital mining investors. As a result, today, Kazakhstan has become the fourth country globally in terms of digital mining. Another example of positive changes in the crisis and as a confirmation of the thesis that the crisis is an opportunity was this year&#8217;s IPO of the London Stock Exchange of the Kazakh fintech company &#8220;Caspian&#8221;, which three years ago was a small bank.\u201d<\/p>\n<p style=\"text-align: justify;\"><strong>Olyana Gordienko<\/strong>, Chairman of the Supervisory Board of JSC Ukreximbank, Member of the Board of the National Registry of Corporate Directors:<\/p>\n<p style=\"text-align: justify;\">&#8220;Scenarios and plans must be present in the board&#8217;s activities and the company as a whole. It is very good when the worst of them are not realized. Unlike private companies, which are free to choose, change, or implement the adopted strategy, a large state-owned enterprise, such as a state-owned bank, does not have such an opportunity. The state bank needs a strategy to understand where the ship is going and whether it is moving to prevent the possibility of its sinking.<\/p>\n<p style=\"text-align: justify;\">We will not return to the conditions as it was &#8220;before\u201d. The sooner everyone understands this and accepts the new reality, the better it will be for everyone. Unfortunately, the strongest will survive. This is life, and we must continue to live in new conditions and according to new rules.&#8221;<\/p>\n<p style=\"text-align: justify;\"><strong>Igor Gut<\/strong>, co-founder of DYB | Develop Your Business, Board Member of the International Renaissance Foundation, founded by George Soros; Tutor of the Corporate Director Program; member of the National Registry of Corporate Directors:<\/p>\n<p style=\"text-align: justify;\">&#8220;In spring, leadership was the main factor which helped the company to survive; the company needed it in the first place. Today, the leaders have returned to action, they have grown wings, and they have returned to their normal state. The corporate cultures of companies have changed; they have become more pragmatic. But the most vulnerable factor was manufacturability. More technology companies easily entered the crisis, took advantage of it, and even strengthened their positions. Today they are buying less technological companies. Large companies have been given more opportunities, and now there is a tendency for them to enter areas that have historically belonged to small and medium-sized businesses. In general, all companies need to change and adapt; if this does not happen, they will just have to leave the market.<\/p>\n<p style=\"text-align: justify;\">As for the strategic process and the board&#8217;s role in it, today, the board must be both more careful and faster in this process. That&#8217;s the uniqueness of the board to combine two things that are difficult to combine.&#8221;<\/p>\n<p style=\"text-align: justify;\">The event was held in cooperation with the support of the International Finance Corporation (IFC), a member of the World Bank Group, within the Integrated Environmental, Social and Governance (ESG) Standards Program in Europe and Central Asia, which is implemented in partnership with the Swiss State Secretariat for Economic Affairs SECO. This program aims to create conditions for companies&#8217; more sustainable development, optimize their management, and better access to capital that will stimulate economic growth and job creation.<\/p>\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p>We&#8217;re not going back to the way it was before. The Corporate Governance Professional Association (CGPA) continues a series of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/posts\/10812"}],"collection":[{"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/comments?post=10812"}],"version-history":[{"count":9,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/posts\/10812\/revisions"}],"predecessor-version":[{"id":10829,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/posts\/10812\/revisions\/10829"}],"wp:attachment":[{"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/media?parent=10812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/categories?post=10812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cgpa.com.ua\/en\/wp-json\/wp\/v2\/tags?post=10812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}