CAPTIVE INSIGHT
deficit, and the breakdown of US
citizens’ trust in the American
economic system. Likewise, the
failure of insurance firm CBL
Insurance Europe dac (CBLIE)
had similar results when it was
found in breach of its regulatory
requirements and in a severely
distressed financial position.
So, in looking ahead, how can corporate
governance work to alleviate these types of
issues, and to better strengthen companies,
in the future? One solution is to shift to an
area such as Cayman, where a high degree
of regulation is already firmly in place.
LOOKING AHEAD
AT CORPORATE
GOVERNANCE
FUNCTIONS
In terms of challenging the more “traditional”
corporate governance processes, and in
order to strengthen its impact in the future,
there are several key questions that should
ideally be answered, such as:
1. Are the existing board of directors
and committee structures appropriate
for facilitating challenge, debate, and
new thinking in light of the rapid pace of
change?
2. How often does the board of directors
challenge and reconsider the strategy
and agility of the business model in order
to keep pace with meeting the company’s
objectives?
3. Has the board of directors reviewed and
challenged the information that is provided
to it by management on important matters
of the company?
4. Does the current board of directors
possess the proper skills for identifying both
threats and opportunities going forward?
(And if not, where should such expertise be
sought going forward?)
In light of heightened regulatory
expectations, along with increased board
scrutiny, organisations will likely lean more
towards a common and holistic framework
that the board can look to in order to both
create and to access critical processes and
activities.
The primary elements in this framework –
which are in turn necessary for implementing
effective board oversight going forward –
include processes, information, behavior,
and skills and knowledge.
These elements have already been alive and
well in Cayman for nearly 40 years. With
that in mind, Cayman offers a rich history
of experience, along with well-established
relationships with service providers.
In the future, there will likely still be additional
challenges to be mindful of. For instance,
given the vast rise in technology, the use
of cybersecurity and other measures for
keeping information and data safe will likely
take on a much more prominent role. And
due in large part to the well-established
rules and regulation framework that is
already well-established in Cayman, adding
solutions for this – or any – new challenge
will be a natural next step.