A series of articles by the EIMF in collaboration with *Alpha* on Sundays

In recent years, corporate governance has been at the center of discussions regarding the sustainability, transparency, and resilience of businesses. Despite its growing importance, until now there has been no systematic research in Cyprus documenting the views of board members themselves on the challenges, priorities, and needs emerging in the modern business environment.

To fill this gap, the Centre of Good Governance at the European Institute of Management and Finance (EIMF), with the support of the Chartered Governance Institute UK & Ireland, conducted the first Annual Corporate Directors Survey, in which 63 board members from organizations in Cyprus’s financial sector participated. The initiative aims to serve as an annual barometer of corporate governance in Cyprus, creating a longitudinal database on developments, priorities, and challenges facing boards of directors. The full results of the first survey will be presented and discussed at the annual conference of the EIMF Center for Good Governance, which will take place this coming September.

One of the most significant findings of the first survey is that regulatory compliance no longer appears to be the greatest challenge for boards of directors. Instead, nearly six out of ten participants identified the need to adapt to the rapid pace of technological developments as the most significant challenge, followed closely by managing an increasingly complex regulatory environment.

This finding is particularly interesting, as it reflects a substantial shift in the role of boards of directors. For many years, the discussion surrounding corporate governance focused primarily on compliance with the regulatory framework, internal controls, and the management of regulatory risks. Today, however, companies are called upon to make strategic decisions in an environment that is changing at an unprecedented pace due to artificial intelligence, digital transformation, cybersecurity, and continuous technological innovation. As a result, the role of the board of directors itself is also changing; it is now called upon to oversee not only compliance but also the organization’s strategic adaptation to new technological realities.

This research is particularly significant precisely because it creates, for the first time in Cyprus, a database that will allow for the monitoring of the evolution of corporate governance over time. The findings of this first edition serve only as the starting point for a necessary dialogue on how the role of boards of directors is changing and on the skills required to respond effectively to newcircumstances.

The technological challenge, however, should not be viewed solely through the lens of risks. The very technologies that are transforming businesses can also serve as powerful tools for strengthening governance. The use of real-time data, the digitization of processes, the use of artificial intelligence, and the development of advanced information systems can significantly enhance transparency, accountability, and the quality of decision-making.

This challenge is not limited to the private sector. It equally concerns the public sector, which is called upon to leverage technology not only to become more efficient, but also to become more transparent, open, and accountable to citizens.

The study’s first message is, therefore, clear: corporate governance in the coming decade will be judged largely by the ability of boards of directors to understand, leverage, and responsibly manage technological change.

Dr. Despoina Christofi (Assistant Professor of Regulatory Compliance and Law)