Yinson Annual Report 2020

161 Annual Report 2020 Overview of Directors’ evaluation Positive highlights • Board configuration and rigour of Board deliberation Board deliberations are conducted with a high level of rigour, professionalism and candour. Board is made up of highly skilled and experienced individuals from the respective areas of finance, accountancy, legal, risk management and oil and gas in turn, bring hard-edged skills and vast experiences to the Board. The Chairman of the Board is highly experienced and able to direct discussions on relevant matters while drawing constructive queries from members. • Strategic planning and direction Board is cognisant that unanimous focus on strategy planning forms the bedrock of the long-term success of the Company and places strong emphasis to ensure that strategic deliberations are thorough, effective and fruitful. Board is highly experienced in developing, reviewing and re- charting corporate strategies for the growth and business sustainability of Yinson. The Chairman of the Board and the Group CEO play a pivotal role in setting the right tone from the top. • Corporate governance, ethics and integrity Board has set the right “tone from the top” in striving to maintain the highest standards of governance and integrity in the overall culture of Yinson. Management habitually embrace high transparency when it comes to reporting to the Board. Board is cognisant of the over arching impact of the evolving corporate liability topography and strive to enhance its whistleblowing mechanism. • Financial administration and vigilance Board’s ability to prudently manage the financial affairs of Yinson is a focal strength of the Board. Board’s continuous success in providing financial oversight to the Company is attributed to the Board’s composition consisting of high-calibre and experienced individuals who are luminaries in the ambit of accounting, investment, risk management and oil and gas. Areas for improvement • Succession planning and boardroom diversity Lack of focus on formulating a clear succession plan for the orderly succession for appointments to Senior Management. There is a need to enhance boardroom diversity in light of current technological advancements and the expansion of the Group’s businesses overseas. Furthermore, Board noted the departure from the recommendation of MCCG which recommend Board to comprise of a majority Independent Directors for Large Companies. • Risk oversight Board shall reassess the current risks management oversight of the Company. Whilst much focus has been given to projects/commercial and financial risks, other critical risks such as technological, litigation and environmental risks are not given emphasis. • Information flow and Board administration Board and Board Committee papers appear to be overly voluminous even though they are generally circulated at least five business days before Board and Board Committee meetings. Board meetings are too protracted and strategic discussions ought to take center-stage in Board meeting agenda. Further, the buffer period or “window” between Board Committee meetings and Board meetings is too short. • Information system, technological adeptness and resilience Board still lacks certain skill sets particularly those pertinent to the areas of information technology (i.e. potential threats to cyber security, system integrity and data breach). There could be more weightage placed on keeping Directors well-informed, particularly in technological advancements and breakthroughs within the marine, offshore and oil and gas industry.