Report Finds Hong Kong Executives Lacking AI and Cybersecurity Expertise at Board Level
A new report from Grant Thornton Hong Kong indicates that executives in Hong Kong's largest listed companies exhibit a significant deficit in technological knowledge, with fewer than 1% of directors possessing specific AI or cybersecurity skills, suggesting firms are ill-prepared for future challenges.
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Based on reporting by South China Morning Post:
According to a new report from Grant Thornton Hong Kong, companies in the city are experiencing a substantial shortage of expertise in artificial intelligence and cybersecurity among their board members, which suggests they are not adequately prepared for the forthcoming period.
The firm's 15th annual Corporate Governance Review, which surveyed 100 major listed firms on Hong Kong’s Hang Seng Composite Index, revealed that less than 1 per cent of directors at Hong Kong's largest listed companies possess dedicated skills in artificial intelligence or cybersecurity.
Despite this, the review found that 59 per cent of these companies consider cybersecurity or AI to be principal business risks. However, only 11 per cent of the surveyed companies had established specialized board committees to manage digital threats and technology integration.
These deficiencies have continued even after the implementation of updated Hong Kong Exchanges and Clearing (HKEX) Corporate Governance Code standards last year, which mandated director training, board skills matrices, and stricter limits on overboarding.
Barry Tong, head of advisory at Grant Thornton Hong Kong, stated that while the quality of overall disclosure on HKEX has seen improvement, there is still a gap between the risks that companies acknowledge and the technical expertise available at the executive level.
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