Corporate governance more than just following rules, says RHB founder

RHB Group founder Abdul Rashid Hussain emphasized that corporate governance goes beyond mere compliance with laws and regulations. Speaking at the inaugural Financial Lines Forum 2026, Hussain stressed the importance of directors and business leaders taking personal responsibility for the consequences of their decisions. He pointed out that compliance alone is insufficient to ensure responsible governance, especially when decisions can have far-reaching impacts on shareholders, employees, and the public.

Hussain argued that corporate governance requires directors and executives to exercise sound judgment and consider the broader implications of their actions. He urged them not to merely ask if a decision is legally permissible but also whether it is morally right and socially responsible. This need for accountability is particularly crucial in today's complex business environment, where financial, technological, and social risks are increasingly intertwined.

While Hussain acknowledged that corporate governance often evolves following crises, he cautioned against treating governance as a mere checklist exercise. He urged boards to foster an environment where tough questions can be raised and decisions critically examined before issues become unmanageable. Ultimately, he stressed that governance rests on people—rules can guide behavior, but they cannot substitute for judgment, integrity, and personal responsibility.