Boardroom Education: Why It Matters for Armenia Today

Strengthening board professionalism is not simply an educational objective. It is an important step in building stronger companies, deeper capital markets, and a more resilient Armenian economy.

By Elena Khachvankyan, Chair, Armenian Institute of Directors

Armenia has recently taken a decisive step forward in corporate governance. On 30 July 2024, a revised Corporate Governance Code was approved, aligned with the 2023 G20/OECD Principles. It transforms the framework into a broader system addressing sustainability, institutional investors, digital risks, and long-term corporate resilience.

At the same time, Armenia’s corporate landscape is evolving rapidly. An increasing number of companies are entering the capital markets, expectations for transparency and accountability are rising, and boards are expected to navigate emerging risks — including ESG-related risks — in a more structured manner. In parallel, supervisory approaches of the Central Bank of Armenia are becoming more risk-based.

Together, these developments set a new and higher bar for boards of directors.

But having rules on paper is only the first step. The real test is implementation. Boards are now expected not only to comply formally with governance standards but to actively apply them — exercising independent judgment, providing effective oversight of strategy and risk, and ensuring robust systems of accountability. This is a challenge and an opportunity. Ultimately, the effectiveness of Armenia’s governance framework depends on the professionalism and preparedness of its directors.

This is where boardroom education comes into play. Executive experience alone does not automatically prepare leaders for the shift from management to governance. Board work differs fundamentally from executive management: it is collective, decision-focused, and judgment-driven. It requires understanding legal duties, financial oversight, audit and risk frameworks, and the subtle dynamics of boardroom influence.

At its best, boardroom education helps directors:

Understand their fiduciary duties and governance responsibilities Interpret financial, risk, and audit information from a board oversight perspective Navigate boardroom dynamics and contribute effectively to collective decision-making Exercise independent judgment and provide constructive challenge to management Focus on strategic oversight rather than operational management

Education is not a shortcut to board appointments, nor a substitute for experience. It is a tool that strengthens director’s readiness and confidence. For Armenian directors, it is an essential step to translate the reforms of 2024 into effective boardroom practice.

Not all directors need the same preparation. CEOs and CFOs may benefit from targeted modules on governance and fiduciary duties, while functional leaders may need broader exposure to enterprise-wide oversight. Entrepreneurs and founders often require grounding in compliance and structured board processes and the transition from operational leadership to governance.

This perspective is especially relevant in Armenia’s evolving corporate landscape, where many successful companies remain family owned. As these businesses mature, expand, and consider new sources of financing or leadership transitions, strengthening governance structures and introducing more formal board practices becomes an important step in supporting their long-term development.

With governance now on a higher plane, the responsibility lies with directors themselves. Education bridges the gap between rules and real impact. It is not about credentials—it is about readiness, judgment, and the ability to contribute effectively to collective decision-making.

Recognizing this, the Armenian Institute of Directors is launching the Directors Certification Program (DCP). Designed specifically for Armenia, the program provides structured exposure to governance frameworks, practical boardroom dynamics, and strategic oversight. Participants will gain insights from peers and experienced directors, learning not just what good governance looks like, but how to execute it effectively.

The first DCP cohort will begin this Autumn. Registration details will be shared in the coming weeks. The program is our contribution to building a community of professional, well-prepared directors capable of translating Armenia’s strengthened governance standards into more resilience, competitive, and credible companies.

Boardroom education is not a silver bullet, but in today’s Armenia, it is an essential lever. The reforms have set the stage; the directors themselves will bring them to life. Education helps ensure they do so with the knowledge, judgment, and confidence.