SINGAPORE – Regulatory compliance issues and a lack of secure business communication processes are among the key challenges in corporate governance faced by companies operating in Asia-Pacific, according to the latest results of the Thomson Reuters and EY 2014 Governance Survey.
The Reuters’ report surveyed employees from the governance teams of a wide range of companies across the Asia-Pacific region, half of which are multinationals with more than five offices worldwide.
Regulatory compliance and disclosure was the most significant challenge facing governance teams from both regional head offices and subsidiary offices, reflecting the gravity of the potential consequences – including financial, legal or reputational damages – in the occasion of a regulatory breach.
Unlike head offices, subsidiary offices also found data management and documentation challenging. As more companies expand across the region and set up subsidiaries in different countries, data management becomes all the more crucial for monitoring and management.
However, despite the challenges posed by compliance and data management, less than 40 percent of respondents currently use a technological platform to assist their management functions. Over half of the respondents continue to print and courier board books to board members, creating a high risk of losing secure information along the way.