Singapore Institute of Directors launches accreditation framework, governance alliance

THE Singapore Institute of Directors (SID) has launched an accreditation framework for board directors in its bid to establish standards for director competencies.

The institute also set up an alliance comprising key stakeholders in the directorship and governance ecosystem at its 25th anniversary event held at the Singapore Exchange (SGX) Centre on Friday (Jul 28).

Accreditation can uplift the directorship profession by promoting continuous improvement, competent leadership and stakeholder confidence; the alliance can harness collective efforts across the directorship ecosystem to champion good governance, said Wong Su-Yen, chair of the SID Governing Council.

Also at the event was Deputy Prime Minister (DPM) and Minister for Finance Lawrence Wong, who said the role of company directors and boards will become even more critical for Singapore.

There are substantial changes in Singapore’s operating environment due to issues which include heightened geopolitical tensions, rising economic nationalism and protectionism, he noted.

“We cannot shy away from these challenges, or wish them away. Instead, we must raise our game as a country, build new capabilities, strengthen our value proposition and our competitiveness as a reliable and trusted hub for business,” he said.

Uncertainty and challenge

Although the government will play a key role in these efforts, DPM Wong noted that it is in “no position to tell companies what they should or should not do”, with board directors and management ultimately responsible for the tough decisions.

“While the road ahead may be filled with uncertainty and challenge, there are also many opportunities available… If we can nurture the right mix of leadership at our company boards, we can ensure that our firms are well positioned for future growth,” he said.

Eligible SID members can apply for accreditation with the framework from January 2024.

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Successful candidates will be able to add “accredited director” or “senior accredited director” – if they have more than five years of directorship experience – to their credentials.

The framework is based on SID’s Director Competency model, which includes eight areas of competencies for board directors – governance, director duties and practice, financial skillsets, risk management, strategy development, digital skillsets, human capital and sustainability fundamentals.

Meanwhile, SID’s Governance for Good Alliance comprises more than 100 founding partners including regulators, government agencies, and other institutions in the directorship or governance space.

The alliance aims to recognise stakeholders who have continuously supported SID’s efforts, and is a signal that good governance requires an ecosystem-wide approach and a rally for others to join the cause, said SID.

Additionally, SID will also begin its Board Readiness Programme, which is based on the SID Director Competency Model and designed to prepare senior executives and professionals for board directorship positions.

SID’s Wong said the institute will aim to professionalise directorship by helping directors bring a holistic set of skills and behaviours to their organisations, and aim to harness the collective energy and expertise of various stakeholders and partners.