Board effectiveness is a foundational pillar of sound corporate governance. As regulatory expectations intensify and stakeholder scrutiny increases—further amplified by rapid technological and climate-related developments—boards must consistently evaluate their performance to remain fit for purpose and aligned with institutional goals.

FIDE FORUM supports this imperative by championing structured, evidence-based approaches to board evaluation. These evaluations go beyond compliance, serving as strategic tools for continuous improvement—helping boards identify strengths, address performance gaps, and elevate overall governance quality.

In this context, the Board Effectiveness Evaluation Guidebook was developed as a practical and principled resource. It reinforces the standards of good governance and encourages boards to reflect critically on how they fulfil their duties and roles.

The guidebook highlights several core dimensions of effective board practice:

• Leadership and Composition – Assessing diversity of perspectives, relevant competencies, and succession planning strategies.
• Board Dynamics – Evaluating levels of trust, openness, and the effectiveness of boardroom interactions.
• Strategy and Oversight – Reviewing the board’s ability to set long-term direction and monitor organisational risks and performance.
• Culture and Conduct – Exploring how values, tone from the top, and behavioural norms are embedded into governance practices.

FIDE FORUM advocates for institutions to integrate regular board evaluations into their governance calendars. Where appropriate, independent facilitation is recommended to ensure objectivity and depth. The insights gathered from these evaluations often shape board development initiatives, inform director training, and strengthen the governance frameworks of financial institutions.