{"id":1770,"date":"2021-12-01T21:29:16","date_gmt":"2021-12-01T13:29:16","guid":{"rendered":"https:\/\/www.praxonomy.com\/blog\/?p=1770"},"modified":"2022-11-22T14:56:24","modified_gmt":"2022-11-22T14:56:24","slug":"smaller-boards-and-board-portals","status":"publish","type":"post","link":"https:\/\/www.praxonomy.com\/blog\/smaller-boards-and-board-portals\/","title":{"rendered":"How Smaller Boards Benefit From Board Portals"},"content":{"rendered":"\n

Board management software, or a board portal<\/a>, is often perceived to be a solution that\u2019s designed for larger boards belonging to Fortune 100 companies. This makes it seem that the technology is unattainable for smaller and mid-sized enterprises (SMEs) due to high cost considerations. <\/p>\n\n\n\n

But the reality is that board portals are essential for the boards of these businesses as well, and there are players in the market, such as Boardlogic<\/a>, who understand the need to serve this market with the same levels of security, quality, and practical functionalities  \u2014 minus distracting features and the hefty price tag. <\/p>\n\n\n\n

RESISTANCE TO CHANGE<\/strong><\/h2>\n\n\n\n

There can be some resistance to change. Smaller boards might ask why they need a board portal solution when their board structure is simple, meeting workflows are straightforward, and email channels and team collaboration software \u201cdo the job.\u201d <\/p>\n\n\n\n

The answer? Blind spots. <\/p>\n\n\n\n

Boards who go with the above reasoning can overlook issues that they didn\u2019t know were critical concerns in the first place \u2014 and they impact boards of all sizes.<\/p>\n\n\n\n

In this post, we highlight some of the advantages to using board portals for small to mid-sized boards and expose the blindspots that are important to the board\u2019s overall effectiveness.<\/p>\n\n\n\n

LARGE-SCALE BENEFITS FOR SMALLER BOARDS <\/strong><\/h2>\n\n\n\n

1. SECURITY<\/strong><\/h3>\n\n\n\n

Cybersecurity should be a primary and ongoing concern for all boards \u2014 regardless of size. <\/p>\n\n\n\n

The board of directors and officers of the company have a fiduciary duty to oversee the management of cybersecurity risks as it relates to the resiliency of the organisation. Failure to do so exposes not only the company to regulatory risks and fines<\/a>, but also brings forth issues around the personal liability of directors<\/a>. <\/p>\n\n\n\n

Most boards still resort to the use of unsecure channels such as email to deliver board papers or board packs and communicate with each other, but this presents <\/a>significant risks. From sending board-level information to incorrect recipients to phishing scams, email use is riddled with cybersecurity-related threats<\/a>.<\/p>\n\n\n\n

Board portals mitigate security risks.<\/em><\/strong><\/p>\n\n\n\n

When dealing with board-level information \u2014 which might hold critical data on strategy, financial records, intellectual property, etc. \u2014 data security should be factored into the conversation. <\/p>\n\n\n\n

Board portals help mitigate security risk in a number of ways.<\/p>\n\n\n\n

As a centralised hub and repository for board information, board portals eliminate the need for email as a tool for communications. Boardlogic, for instance, has its own messaging solution within the platform as well as collaboration tools such as Shared Notes<\/a>, which enable board members to stay connected in a highly-secure manner.  <\/p>\n\n\n\n

The most secure board portals also adopt a multi-level encryption framework. This essentially means that data is scrambled into another form, or code, so that only individuals with the right \u201cdecryption key\u201d or password can decipher it. This significantly prevents data theft. <\/p>\n\n\n\n

In addition, unlike misplaced or stolen printed board packs, if a device with access to the board portal is lost, access can be instantly disabled and remotely revoked or removed.<\/p>\n\n\n\n

In today\u2019s cybersecurity environment, it is important to emphasise a \u201csecurity-first\u201d culture. And that begins at the top of the top. The adoption of board portal solutions signals to the rest of the organisation that the board places serious weight on the cyberrisks that present-day businesses face. The board covers its bases, acknowledging that security is a baseline requirement with far-reaching implications \u2014 regardless of the number of individuals that sit on the board.<\/p>\n\n\n\n

2.<\/strong>  EFFICIENCY<\/strong><\/h3>\n\n\n\n

Apart from security considerations, sending board documents via email (or post) can simply be inefficient. It happens often enough: directors have to contend with the same files being sent multiple times to their inbox due to updates or corrections. <\/p>\n\n\n\n

As a result, board members and officers have to manage version control on their own. It\u2019s a tedious and time-consuming process which can lead to incorrect or outdated data being reviewed. This ultimately impacts the quality of input and engagement from the board. Often overlooked, efficiency is critical to overall board performance.<\/p>\n\n\n\n

Board portals serve as the central hub for board information.<\/em><\/strong><\/p>\n\n\n\n

Board portals are designed to be a central repository to store and manage board-related information. It becomes the single-source of truth for the board.<\/p>\n\n\n\n

Board packs are easily uploaded to the platform for board members to access. Any changes to the board papers are reflected in real time and the board is appropriately notified. With board management software, board members don\u2019t need to organise, sort, and track confusing file versions which slow down their review. They simply need to revert to what\u2019s on the platform. <\/p>\n\n\n\n

Boards also, regardless of size, are subject to a system of checks and balances. This is where complex audits, compliance, or corporate governance requirements might come in. By using board portal technology, smaller and mid-sized boards adopt a meeting and process workflow that not only allows them to organise or archive board files, but also inherently adopt good corporate governance principles \u2014 from transparency to accountability<\/a>.<\/p>\n\n\n