Continuous Training and Development for Board Members

Onboarding Programs, Regulatory Updates, and Building Sustainable Competencies

First: Introduction

Board membership is not a fixed position whose attainment requires only fulfilling initial qualifications. It is an ongoing path of evolution and learning, where the member keeps pace with accelerating changes in the regulatory, economic, technological, and social environment. A member who does not develop continuously becomes, within a few years, a burden on the board rather than a value-adding asset. Continuous training and development is not a luxury but a professional and ethical necessity for every member.

In the Saudi system, developing board members has become an explicit regulatory requirement. The Corporate Governance Regulations stipulate the necessity of onboarding programs for new members and continuous training for current members. Saudi educational institutions (Chartered Institute, specialized colleges) have evolved to offer specialized programs. This article reviews onboarding programs, continuous training, development areas, learning tools, and best practices for building continuously developing board members.

💡  Key Insight A member who has stopped learning has stopped genuinely contributing. In an era where everything changes — technologies, regulations, markets, expectations — a member who relies on past experience becomes detached from reality. Continuous training is not a time burden but an investment in personal and institutional value.

Second: Why Continuous Training?

1. Regulatory Developments

The governance regulatory framework is constantly evolving:

• Saudi Corporate Governance Regulations updated periodically.
• Companies Law substantially amended in 2022.
• Capital Market Authority regulations evolving.
• Sectoral regulations (banking, insurance) change.
• International regulations (FATCA, CRS, ESG) impact locally.

2. Technological Transformations

Technology is reshaping the business environment:

• Artificial intelligence and its applications.
• Digital transformation.
• Cryptocurrencies and blockchain.
• Electronic trading and disclosure platforms.

3. Economic Challenges

Global and local economy poses new challenges:

• Oil price volatility.
• Inflation and recession.
• Supply chains.
• Geopolitical tensions.
• Demographic transformations.

4. Governance Developments

Governance practices constantly evolve:

• ESG standards (Environment, Social, Governance).
• Diversity and inclusion.
• Increasing transparency.
• Institutional investor expectations.
• Disclosure practices.

5. Institutional Challenges

Every company faces specific challenges:

• Mergers and acquisitions.
• International expansion.
• Strategic transformation.
• Leadership succession.

Third: Onboarding Program for New Members

1. Importance of Onboarding

A new member typically enters an unfamiliar world. A good onboarding program:

• Shortens the learning curve.
• Avoids early mistakes.
• Builds confidence quickly.
• Clearly defines the role.
• Integrates the member into board culture.

2. Program Components

2.1 Company Introduction

• History and establishment.
• Vision, mission, strategy.
• Organizational structure and senior management.
• Main activities and markets.
• Historical financial performance.
• Competitive position.

2.2 Governance Introduction

• Articles of association.
• Board charter.
• Governance and compliance policies.
• Committee structure.
• Conflict of interest policies.
• Disclosure policies.

2.3 Regulatory Framework Introduction

• Saudi Companies Law.
• Corporate Governance Regulations.
• Capital Market Authority regulations (for listed companies).
• Relevant sectoral regulations.
• Personal Data Protection Law.

2.4 Responsibilities Introduction

• Legal duties of members.
• Civil and criminal liability.
• Professional liability insurance.
• Confidentiality policies.
• Handling material information.

2.5 Financial Introduction

• Reading financial statements.
• Key performance indicators.
• Accounting standards.
• Budgeting and planning.
• Cash flows.

2.6 Risk Introduction

• Company’s risk system.
• Risk appetite.
• Management and control procedures.
• Business continuity plans.

3. Program Forms

Form	Duration	Content
Introductory sessions with senior management	10-15 sessions	Individual interviews with each key official
Site visits	1-3 days	Company offices, factories, branches
Document review	Weeks	Minutes, financial statements, reports
Customized training courses	Days	Regulatory, technical, governance
Sessions with consultants	Hours	Auditor, legal, financial
Mentor accompaniment	Months	Continuous personal guidance

4. Ideal Timeline

• Week One: Welcome and general framework.
• First Month: Company and regulations introduction.
• Second Month: Governance and responsibilities introduction.
• Third Month: Attending meetings for observation.
• First Six Months: Gradual application with follow-up.
• First Year: Completion of onboarding.

📌  Note A new member needs time for complete absorption. The expectation that they contribute fully from day one is unrealistic. Successful companies set reasonable expectations for early months and focus on onboarding rather than immediate contribution.

Fourth: Continuous Training for Current Members

1. Lifelong Learning Principle

Training does not stop after the onboarding program. It is a continuous journey:

• Required annual training hours.
• Coverage of diverse areas.
• Diversifying tools and forms.
• Linking to real needs.

2. Recommended Annual Training Limit

Member Type	Suggested Annual Hours	Notes
New member (first two years)	40-60 hours	In addition to onboarding
Current member	20-30 hours	Updates and development
Chairman	30-40 hours	Leadership and advanced governance
Audit committee chair	30-40 hours	Specialized audit and finance
Risk committee chair	25-35 hours	Specialized risk

3. Mandatory Training Areas

Some areas must be regularly covered:

• Regulatory Updates: At least annually.
• Anti-Money Laundering: Mandatory in financial sectors.
• Cybersecurity:
• Advanced Governance: As needed.
• Professional Ethics: Every two years.

Fifth: Main Development Areas

1. Regulatory and Legal Area

1.1 Legislative Updates

• Companies Law updates.
• New CMA regulations.
• New sectoral regulations.
• Labor and investment laws.
• Tax and Zakat regulations.

1.2 International Standards

• OECD standards.
• ICGN standards.
• FSB standards.
• IFRS standards.
• Basel standards for banks.

2. Financial and Accounting Area

2.1 Accounting Standards

• International Financial Reporting Standards (IFRS).
• Updates in standards.
• Advanced financial analysis.
• Financial modeling.

2.2 Financial Risk Management

• Market risks.
• Credit risks.
• Liquidity risks.

3. Strategic Area

3.1 Strategic Thinking

• Competitive environment analysis.
• Emerging business models.
• Digital strategies.
• International expansion.

3.2 Mergers and Acquisitions

• Opportunity assessment.
• Post-deal integration.
• Risk management.

4. Technical Area

4.1 Digital Transformation

• Transformation strategies.
• Artificial intelligence.
• Data platforms.

4.2 Cybersecurity

• Emerging threats.
• Cyber governance framework.
• Incident management.
• Regulatory compliance.

5. Environmental, Social, and Governance (ESG) Area

5.1 Environmental Sustainability

• Climate change.
• Carbon footprint.
• Circular economy.
• Environmental disclosure.

5.2 Social Responsibility

• Human and labor rights.
• Diversity and inclusion.
• Responsible supply chains.
• Community impact.

6. Leadership and Governance Area

6.1 Board Leadership

• Team building.
• Managing dynamics.
• Crisis management.
• Complex decision-making.

6.2 Shareholder Relations

• Effective communication.
• Expectation management.
• Responding to shareholder activism.
• Advanced disclosure.

Sixth: Training Forms

1. Formal Training Courses

1.1 Internal Courses

Provided by the company to its members:

• Tailored to corporate context.
• Easy to organize.
• Low cost.
• Weak external perspective.

1.2 External Courses

In specialized institutes:

• Chartered Institute.
• Universities and colleges.
• International institutions (INSEAD, Harvard, Wharton).
• Specialized bodies.

2. Conferences and Events

• Governance conferences.
• Sectoral seminars.
• Member forums.
• International forums.

3. Self-Learning

• Regular reading.
• Following specialized press.
• Subscribing to information services.
• Following international reports.

4. Experiential Learning

• Exposure to diverse challenges in meetings.
• Participation in multiple committees.
• Field visits.
• Communication with executive management.

5. Mentoring

• Relationship with more experienced member.
• Regular discussions.
• Personal guidance.
• Building professional network.

6. E-Learning

• E-learning platforms.
• Virtual seminars (Webinars).
• Specialized podcasts.
• Educational video clips.

Seventh: Professional Certifications

1. Saudi Certifications

1.1 Chartered Institute Programs

The Chartered Institute in Saudi Arabia offers:

• Certified board member certificate.
• Audit committee member certificate.
• Board secretary certificate.
• Specialized governance programs.

1.2 CMA Certifications

CMA accredits several certifications:

• Certifications for market dealers.
• Governance certifications.
• Compliance certifications.

2. International Certifications

Certification	Issuing Body	Focus
CGI / ICSA	Chartered Governance Institute	Comprehensive governance
NACD Fellow	National Association of Corporate Directors	Board member practices
FT/CFI Diploma	Financial Times	Board leadership
INSEAD IDP	INSEAD	Director training programs
Harvard Corporate Governance	Harvard Business School	Advanced governance
IoD Diploma	Institute of Directors UK	British governance

Eighth: Training Planning

1. Identifying Needs

Identifying training needs is done through:

• Board Performance Evaluation: Revealing gaps.
• Member Surveys: Personal suggestions.
• Company Challenges: What it faces.
• Regulatory Updates: What’s new.
• International Practices: What’s evolving.

2. Annual Plan

Annual training plan includes:

• Topics: Selected axes.
• Objectives: What is to be achieved.
• Forms: Courses, workshops, conferences.
• Audience: All members or specific groups.
• Budget:
• Timing: Throughout the year.

3. Budget

Training budget must be sufficient:

• Large Companies: SAR 100-300K per member annually.
• Medium Companies: SAR 50-100K per member annually.
• Small Companies: SAR 20-50K per member annually.

4. Responsibility

• Nominations and Remuneration Committee: Oversees program.
• Secretary: Coordinates implementation.
• Senior Management: Provides internal content.
• Consultants: For specialized topics.

Ninth: Measuring Training Effectiveness

1. Effectiveness Indicators

• Training Hours: Against planned limit.
• Topic Diversity: Coverage of basic areas.
• Source Quality: Member evaluation of courses.
• Knowledge Application: Appearance of training impact in discussions.
• Performance Development: In board evaluation.

2. Measurement Mechanisms

• Surveys after each course.
• Annual evaluation of program as a whole.
• Interviews with members.
• Impact assessment in board evaluation.
• Comparison with peer companies.

3. Continuous Improvement

• Annual program update.
• Benefiting from feedback.
• Renewing sources.
• Exploring new forms.
• Learning from other companies.

📊  Note The greatest indicator of training effectiveness is not the number of hours but its impact on decisions. A member acquiring new knowledge asks deeper questions, proposes innovative solutions, and sees angles they did not see before. If you do not observe these effects in board meetings, training has not achieved its real purpose regardless of its hours.

Tenth: Challenges in Training and Development

1. Time Challenge

Members are busy individuals. The challenge:

• Difficulty allocating full days for training.
• Reconciling with meeting schedules.
• Reconciling with other personal and professional commitments.

Solutions:

• Short intensive sessions (90 minutes).
• Flexible e-learning.
• Integrating training into board meetings.
• Advance schedule planning.

2. Cost Challenge

Good training is costly, especially for small companies. Solutions:

• Leveraging Free Resources: Seminars, reports.
• E-Courses: Cheaper than in-person.
• Cooperation with Other Companies: For organizing joint courses.
• Leveraging Saudi Chartered Institute: At reasonable prices.

3. Resistance Challenge

Some members resist training, believing their experience is sufficient. Solutions:

• Linking training to regulatory requirements.
• Focusing on new topics (ESG, digitization).
• Hosting distinguished lecturers.
• Making training part of board culture.

4. Measurement Challenge

Measuring training impact is difficult. Solutions:

• Focusing on behavioral indicators.
• Linking training to performance evaluation.
• Regular inquiry from members.
• Patience — impact appears over time.

Eleventh: Best Practices

1. At the Strategic Level

• Considering Training an Investment: Not cost.
• Linking to Strategy: What the company needs.
• Sufficient Budget: Commensurate with importance.
• Commitment from the Top: Chairman model in training.

2. At the Operational Level

• Approved Annual Plan: From the board.
• Diversifying Forms: Courses, conferences, mentoring, self-learning.
• Flexible Schedule: Accommodating member schedules.
• Regular Follow-up: Of participation and impact.

3. At the Individual Level

• Personal Development Plan: For each member.
• Respecting Preferences: In forms and topics.
• Linking to Responsibilities: Training committee chair in their area.
• Motivation: Recognition of effort.

4. At the Disclosure Level

• Disclosure in Annual Report: On training programs.
• Training Hours per Member: In total.
• Covered Topics: Program diversity.
• Accredited Bodies: Source credibility.

Conclusion

Continuous training and development is a strategic investment in each member and the board as a whole. A continuously learning member is a continuously value-adding member, asking deeper questions, seeing broader opportunities and risks, and contributing to more refined decisions. A board investing in its members’ development is a board investing in its future and its company’s future.

Saudi companies today, with accelerating transformations in all fields, face a necessity not choice in developing their training system. The regulatory framework supports this development, educational institutions are available, and international practices are clear. What remains is genuine commitment from boards to make training a priority, allocate resources, follow up, and measure. This investment builds stronger members, more effective boards, and more sustainable companies. Learning does not stop, and the board that understands this guarantees itself permanent distinction.

🎯  Essential Points to Remember (1) Continuous training is necessity in an era of accelerating change. (2) Saudi system mandates onboarding programs for new and continuous training for current. (3) Onboarding program covers company, governance, regulations, responsibilities, finance, risks. (4) Suggested annual training 20-60 hours per role. (5) Development areas: regulatory, financial, strategic, technical, ESG, leadership. (6) Training forms diverse: courses, conferences, mentoring, self-learning, e-learning. (7) Professional certifications enhance competence and provide credibility. (8) Annual training plan needs need identification, objectives, forms, budget. (9) Measuring effectiveness through behavioral indicators, surveys, annual evaluation. (10) Challenges include time, cost, resistance, measurement — each with solutions.

Frequently Asked Questions

What must a new board member onboarding program cover in Saudi Arabia and what is the recommended timeline?

A comprehensive onboarding program spans six knowledge domains. Company introduction covering history, vision and strategy, organizational structure and senior management, main business activities and markets, and competitive position. Governance introduction covering the articles of association, board charter, governance and compliance policies, committee structure, conflict of interest policies, and disclosure procedures. Regulatory framework covering the Saudi Companies Law, CMA Corporate Governance Regulations, listed company implementing regulations, relevant sectoral regulations, and the Personal Data Protection Law. Responsibilities introduction covering legal duties, civil and criminal liability, professional liability insurance, confidentiality obligations, and handling of material non-public information. Financial introduction covering reading financial statements, key performance indicators, IFRS accounting standards, budgeting, and cash flow analysis. Risk introduction covering the company's risk management system, risk appetite framework, control procedures, insurance coverage, and business continuity plans. The delivery format combines 10 to 15 introductory sessions with senior management as individual interviews, site visits to company offices and facilities, document review of minutes and financial reports, customized regulatory and governance courses, sessions with the auditor and legal counsel, and an ongoing mentor relationship with an experienced board member. The timeline extends across the full first year, beginning with the general framework in week one, progressing through company and regulatory knowledge in the first two months, observation attendance at meetings in the third month, and gradual contribution with follow-up through month six, reaching complete onboarding by year end.

What are the main training areas for Saudi board directors and how many annual training hours are recommended?

Six areas require regular coverage throughout a board member's tenure. Regulatory and legal updating knowledge of Companies Law changes, new CMA regulations, sectoral regulatory developments, and international standards including OECD, ICGN, IFRS, and Basel for banks — mandatory at least annually. Financial and accounting covering IFRS updates, advanced financial analysis, financial risk management including market, credit, and liquidity risks. Strategic covering competitive analysis, emerging business models, digital strategies, and mergers and acquisitions from assessment through post-deal integration. Technical covering digital transformation strategies, artificial intelligence applications, and cybersecurity governance framework — mandatory annually. ESG covering environmental sustainability, carbon footprint management, diversity and inclusion, and sustainability disclosure standards. Leadership and governance covering board team dynamics, crisis management, and managing shareholder relations. Recommended annual training hours vary by role: 40 to 60 hours for new members in their first two years on top of their onboarding program, 20 to 30 hours for current members covering updates and development, and 30 to 40 hours for the chairman and chairs of audit and risk committees given their greater specialized responsibilities. The annual training budget should range from SAR 20,000 to 50,000 per member in smaller companies up to SAR 100,000 to 300,000 in large ones.

What professional certifications are available for board directors in Saudi Arabia and how should training be planned?

On the Saudi side the Chartered Governance Institute offers four credentials: the certified board member certificate, the audit committee member certificate, the board secretary certificate, and specialized governance programs, while the CMA accredits certifications in governance and compliance. Internationally, the most recognized credentials are the CGI/ICSA from the Chartered Governance Institute covering comprehensive governance, the NACD Fellow from the National Association of Corporate Directors focused on US board practices, the INSEAD International Directors Programme, and advanced governance programs from Harvard Business School. Annual training planning follows four stages. Needs identification drawing from the board performance evaluation's revealed competency gaps, member surveys, the company's current strategic challenges, new regulatory requirements, and developments in international practice. Plan development specifying topics, objectives, delivery forms covering courses, conferences, mentoring, and e-learning, the target audience for each program, budget allocation, and timing. Implementation supervised by the nominations and remuneration committee with coordination by the secretary. Effectiveness measurement using post-course surveys, annual program evaluation, behavioral impact assessment in board discussions, and benchmarking against peer companies — with the key insight that the true measure of training effectiveness is not training hours completed but visible improvement in the depth of questions asked and the quality of decisions made.

References and Sources

• Corporate Governance Regulations issued by the Capital Market Authority.
• Saudi Companies Law (Royal Decree M/132).
• Chartered Institute — Certification and Training Programs.
• ICSA / Chartered Governance Institute — Director Education.
• NACD — National Association of Corporate Directors Director Education.
• INSEAD International Directors Programme.
• Harvard Business School — Corporate Governance Programs.
• Institute of Directors UK — Director Development Programs.
• ICGN Global Governance Principles — Director Education.
• OECD Principles — Board Capability Development.