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Deloitte report: corruption is considered to be at high level and it will remain high in the period to come

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Corruption is considered to be at high level and it will remain so in the period to come, consider the boards of Romania, according to the first edition of the Deloitte report ‘ EMEA 360 Boardroom Survey Agenda priorities across the region’.

‘The main preoccupations of the boards of Romania over the last 12 months were the organizational structure, the efficiency and operational management. Corruption is considered as being at high level and it will be high in the period to come. The most important issues for the next 12-24 months are risk management, governance and strategy. The reduction of costs continues to be a decisive issue on the agenda of the members of the boards for the period to come’ Zeno Caprariu, manager Deloitte Romania said.

The survey presents the viewpoints of 271 non-executive managers of 20 countries in Europe, Middle East and Africa (EMEA), including Romania, giving a perspective on the issues which face the boards in the region.

According to the survey, the cyber security has become an issue most important for the non-executive managers in the EMEA region.

On a scale from 1 to 5 regarding the degree of awareness of cyber risk (1 being the lowest point)48% of the interviewees offered a high percentage, while 20% offered a low one (1 or 2).Despite its importance, fewer than half of the interviewees mentioned that their organization has, at present, an action plan for cyber security. Only 5% said that their organization nominalised a member of the board as expert in cyber security, the rest considering that this issue is not of the competence of the board, or that the executive team deals with this issue’ the document says.

According to it, the transformation of the cyber security in a major issue is due, partially, to its visibility in the media reports, as well as due to the reputational risk which it represents for the companies which can be victims of a cyber attack. Unauthorised access to personal data creates risks especially for banking institutions and for the companies in the countries with political instability.

‘If we report to industries, there are some notable differences: cyber security has an important place on the agenda of 38% of the interviewees in the manufacturing industry. In the pharma, already half of the interviewees have a high degree of awareness of the risk, 33% offered a low percentage to this issue, taking into consideration the fact that the majority of the production processes depend on IT systems, the low level of interest is alarming’ the quoted source says.

The results of the survey show that innovation is important on the agenda of the board members, 60% offering 4 or 5.

Asked about the future necessary skills in a board, the most commonly mentioned was practical experience in industry (74%) and factors which connect to the development targets of the organization.Even if the requirements regarding skills are at the decision of the board, other criteria which aim at diversity can be imposed by the law or by the corporate governance code.

‘In Romania, genre diversity is not a significant factor in selecting the board members. I noticed that genre is an important factor in the countries where there are legal provisions in this sense or where measures have been taken to promote genre diversity in public companies’ Caprariu said.

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