Insights from the 3rd episode of Academia de Guvernață: Governance Trends and Best Practices in the Non-bank Financial Markets
In the third edition Gabriela Hârțescu, PhD, Dean and Co-founder Envisia, and Alexandru Petrescu, President of Financial Supervisory Authority, shared insights about the Governance trends and best practices in the non-bank financial markets.
In the third episode of Academia de Guvernanță on Profit News TV, the focus was on the critical role that the Financial Supervisory Authority (ASF) plays in enforcing and promoting robust corporate governance principles within Romania's financial markets. Alexandru Petrescu, the President of ASF, emphasized that beyond its regulatory and supervisory functions, the ASF is deeply committed to ensuring that corporate governance principles such as integrity, transparency, and adherence to best practices are fully integrated into the operations of companies across the capital, insurance, and pension markets.
Petrescu highlighted the ASF's role in Romania's ongoing efforts to align with the OECD's governance standards, particularly as the country moves towards joining this prestigious international organization. The ASF has partnered with the Agency for Monitoring and Evaluating the Performance of Public Enterprises (AMEPIP) to ensure that these governance principles are not only adopted but are also uniformly applied across both private and state-owned enterprises. This partnership reflects a broader commitment to creating a cohesive and transparent regulatory environment that supports sustainable growth.
Gabriela Hârțescu, Dean and Founding Member of Envisia - Boards of Elite, echoed these sentiments, noting that many of the trends in corporate governance within the non-banking financial services sector align closely with ASF's strategic objectives. One such trend is the focus on sustainable finance, particularly in light of the European Green Deal, which aims to achieve climate neutrality by 2050. Hârțescu pointed out that this initiative is expected to drive massive investments into the green economy, with the EU projected to channel up to one trillion euros into sustainable projects.
Envisia, as a founding member of the International Association for Sustainable Economy (IASE), is uniquely positioned to support the development and certification of skills in the Environmental, Social, and Governance (ESG) space. Hârțescu also emphasized the growing importance of cybersecurity resilience, as the financial sector faces increasing threats from cyber attacks. With the average cost of a cyber attack in the financial industry estimated at $1.67 million, boards must prioritize technical expertise and crisis management to safeguard their organizations.
Another critical area of focus discussed in the episode was the impact of artificial intelligence (AI) on the financial sector. Hârțescu cited a recent study by the World Economic Forum, which found that 74% of financial leaders expect to integrate AI into their organizations within the next five years. This shift is anticipated to significantly impact the insurance and banking sectors, with the AI market in these industries projected to grow exponentially by 2030. The integration of AI will require boards to adapt and develop new competencies to manage the associated risks and opportunities effectively.
Moreover, Petrescu noted that corporate governance is increasingly encompassing broader social concerns, including green financing and the integration of ESG factors into business strategies. ASF is closely aligned with these evolving governance practices, ensuring that Romanian financial institutions not only comply with existing regulations but also embrace the full spectrum of modern governance principles.
In conclusion, the third episode of Academia de Guvernanță highlighted the continuous challenges and opportunities presented by the complex landscape of corporate governance. As the regulatory environment evolves, so too must the skills and strategies of those leading financial institutions. Through partnerships like those between ASF, AMEPIP, and Envisia, Romania is taking significant steps toward strengthening its corporate governance framework, ensuring it is well-equipped to face the future with confidence and resilience.
The article that summarises the discussion is here.
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