{"id":1573,"date":"2021-09-16T03:17:29","date_gmt":"2021-09-15T19:17:29","guid":{"rendered":"https:\/\/www.praxonomy.com\/blog\/?p=1573"},"modified":"2022-06-16T11:13:38","modified_gmt":"2022-06-16T03:13:38","slug":"how-board-portals-mitigate-compliance-risks","status":"publish","type":"post","link":"https:\/\/www.praxonomy.com\/blog\/how-board-portals-mitigate-compliance-risks\/","title":{"rendered":"How Board Portals Mitigate Compliance Risks"},"content":{"rendered":"\n<p>Boards face increasing scrutiny over adherence to workflows and policies established by regulatory bodies. From fiduciary responsibilities to documentation procedures, boards need to ensure that they have systems in place to ensure compliance. Failing to do so can lead to financial and reputational damage for the board and the organisations they lead.<\/p>\n\n\n\n<p>In this post, we discuss how the digitisation of board workflows and activities via board portals, or board management software, helps mitigate compliance risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are compliance risks?<\/strong><\/h2>\n\n\n\n<p>Compliance risk, as defined by this <a href=\"https:\/\/www2.deloitte.com\/us\/en\/pages\/finance\/articles\/cfo-insights-compliance-risks.html\" target=\"_blank\" rel=\"noreferrer noopener\">Deloitte paper<\/a>, is best described as \u201cthe threat[s] posed to a company&#8217;s financial, organizational, or reputational standing resulting from violations of laws, regulations, codes of conduct, or organizational standards of practice.\u201d<\/p>\n\n\n\n<p>The article goes on to identify four key areas that drive the strategy for compliance risk mitigation:<\/p>\n\n\n\n<ul><li><strong>Legal impact: <\/strong>Regulatory or legal action brought against the organisation or its employees that could result in fines, penalties, back taxes, imprisonment, product seizures, or debarment\u00a0<\/li><li><strong>Financial impact:<\/strong> Negative impacts with regard to the organization\u2019s bottom line, share price, potential future earnings, or loss of investor confidence<\/li><li><strong>Business impact: <\/strong>Adverse events, such as embargos or plant shutdowns, that could significantly disrupt the organization\u2019s ability to operate<\/li><li><strong>Reputational impact:<\/strong> Damage to the organization\u2019s reputation or brand\u2014for example, bad press or social-media discussion, loss of customer trust, or decreased employee morale<\/li><\/ul>\n\n\n\n<p>Looking at these categories, it becomes apparent that a domino effect can take place, e.g., legal impacts can lead to dire financial, business, and reputational consequences. This underscores the need for compliance risks to be assessed, measured, and mitigated. Board processes and workflows are not spared from this.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Board Portals Can Help&nbsp;<\/strong><\/h2>\n\n\n\n<p>To meet the demands of today\u2019s regulatory environment and make it easier for boards to respond to auditors and regulatory bodies, boards of all types of organisations can be supported by technologies to digitise or automate their workflows. One such platform is the <a href=\"http:\/\/www.praxonomy.com\/board-portal\" target=\"_blank\" rel=\"noreferrer noopener\">board portal<\/a>.&nbsp;<\/p>\n\n\n\n<p><a href=\"http:\/\/www.praxonomy.com\" target=\"_blank\" rel=\"noreferrer noopener\">Board portals<\/a> help ensure accountability and transparency in processes while allowing the board to operate in a highly secure environment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Transparency in Processes<\/strong><\/h3>\n\n\n\n<p>With board portals, board members adhere to a specific workflow or activities typically defined by the software or technology platform. This not only ensures consistency, repeatability, and efficiency of processes, but it also makes the workflow more transparent. Board portals are designed to ensure that every step in the workflow is simple, clear, straightforward.&nbsp;<\/p>\n\n\n\n<p>This allows process gaps to be easily identified and addressed before, during, or after internal audits\u2014mitigating legal or financial risks.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documentation is in Order<\/strong><\/h3>\n\n\n\n<p>Most board portals have <a href=\"https:\/\/www.praxonomy.com\/board-portal-features\" target=\"_blank\" rel=\"noreferrer noopener\">the ability to store board information<\/a> (such as meeting agendas, board packs, or meeting minutes) associated with board meetings. And just as important, these can be retrieved quickly, in real-time, with a search.<\/p>\n\n\n\n<p>Documentation is in order because it is supported by archiving functionalities, as well. When board meeting information is archived, these become read-only or tamper-proof. Data integrity is preserved at all times.&nbsp;<\/p>\n\n\n\n<p>In short, the board portal serves as an organised, paperless, secure repository where all board-related information can be stored. Documentation is more likely to be complete, correct, and reliable. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Audit Trail<\/strong><\/h3>\n\n\n\n<p>Board portals also have features such as version control and electronic signatures. Version control helps ensure that boards and auditors review and work with the latest board information, and that they have the ability to make note of changes made against specific files if and when necessary. Electronic signatures, on the other hand, simplify the process of approving board documents, while keeping track of items agreed upon.<\/p>\n\n\n\n<p>Both these features create a digital \u201cpaper trail\u201d which makes it easier to ensure compliance while further strengthening accountability (through board-decision tracking) and transparency in the board process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Security<\/strong><\/h3>\n\n\n\n<p>Board members continue to be <a href=\"https:\/\/info.praxonomy.com\/hubfs\/Praxonomy%20Presents%20-%20Remote%20Working%20Practices%20A%20Cybersecurity%20Concern%20for%20Boards.pdf?hsLang=en\" target=\"_blank\" rel=\"noreferrer noopener\">targets of cybercrimes<\/a> (e.g. whaling) primarily because of their access to sensitive information and their sphere of influence within the organisation. With the proliferation of email phishing scams to the outright hacking and monitoring of their personal computers, the use of board portals helps eliminate vulnerabilities to criminal activities.\u00a0<\/p>\n\n\n\n<p>The most secure board portals, like <a href=\"http:\/\/www.praxonomy.com\" target=\"_blank\" rel=\"noreferrer noopener\">Boardlogic<\/a>, provide <a href=\"https:\/\/www.praxonomy.com\/security\" target=\"_blank\" rel=\"noreferrer noopener\">robust security features<\/a> to combat these threats. Board portals are typically built on a multi-level encryption framework, employ two-factor authorisation (2FA), and have the ability to remotely disable device access. On top of these, they have built in messaging features which can reduce their reliance on email for board-related communications as well.<\/p>\n\n\n\n<p>Without security, data integrity becomes questionable and can lead to steep consequences\u2014especially from an operational, legal, financial, and reputational perspective. It continues to be an area of concern for boards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>CONCLUSION<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.praxonomy.com\/blog\/sharpening-the-boards-focus-on-risk-oversight\/\" target=\"_blank\" rel=\"noreferrer noopener\">Risk oversight<\/a> has long been established to be one of the primary responsibilities of boards. Monitoring compliance is a critical<strong> <\/strong>component of risk management and can\u2019t simply be viewed as a procedural process that needs to be adhered to. It serves boards to be proactive in this regard.<\/p>\n\n\n\n<p>The stakes for non-compliance are too high to be ignored.<\/p>\n\n\n\n<p>By digitisting board processes with the use of board management software, workflows are standardised, information remains secure, accountability and transparency are clear, and human error is minimised\u2013leaving the board to focus on working smarter and leading with more confidence.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>To meet the demands of today\u2019s regulatory environment and make it easier for boards to respond to auditors and regulatory bodies, boards of all types of organisations can be supported by technologies to digitise or automate their workflows. One such platform is the board portal.\u00a0<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":2,"featured_media":1574,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1,5],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Board Portals Mitigate Compliance Risks - Praxonomy<\/title>\n<meta name=\"description\" content=\"Today&#039;s boards operate in a regulatory environment. 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Learn how board management solutions minimise the risks associated with non-compliance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.praxonomy.com\/blog\/how-board-portals-mitigate-compliance-risks\/\" \/>\n<meta property=\"og:site_name\" content=\"The Boardlogic Blog | News, Updates, Industry Insights and Best Practices.\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-15T19:17:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-16T03:13:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2021\/09\/linkedin-how-board-portals-mitigate-compliance-risks-min-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1338\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Carissa Duenas\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Praxonomy Blog: How Board Portals Mitigate Compliance Risks\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.praxonomy.com\/blog\/wp-content\/uploads\/2021\/09\/linkedin-how-board-portals-mitigate-compliance-risks-min-scaled.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carissa Duenas\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.praxonomy.com\/blog\/how-board-portals-mitigate-compliance-risks\/\",\"url\":\"https:\/\/www.praxonomy.com\/blog\/how-board-portals-mitigate-compliance-risks\/\",\"name\":\"How Board Portals Mitigate Compliance Risks - Praxonomy\",\"isPartOf\":{\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#website\"},\"datePublished\":\"2021-09-15T19:17:29+00:00\",\"dateModified\":\"2022-06-16T03:13:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.praxonomy.com\/blog\/#\/schema\/person\/c7f1e6afbb97d79f23850d7938b6d748\"},\"description\":\"Today's boards operate in a regulatory environment. 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