A board corporate governance role requires oversight, insight and foresight. As the business environment data-driven IT strategy formulation becomes more complex and unpredictable it requires more diligent monitoring and informed decision-making from directors on the board. It also requires more coordinated efforts from all employees to ensure success.
A well-formed and constituted board should have members with a range of skills and perspectives who are willing to challenge the board’s assumptions and opinions. This will encourage more comprehensive discussions and increase the board’s effectiveness.
As the board’s responsibilities continue to evolve, it is important to be ready to tackle the new technologies and issues like disclosures about climate and diversity which could affect a company’s bottom line. It is also essential to create an environment that promotes and encourages ongoing education, and punishes insanity.
The board should establish goals and strategies, both in the short- and long-term and establish mechanisms to monitor the progress made towards achieving these goals. The board also supervises the chief executive officer and establishes the guidelines and policies that govern the company’s operations.
It is the responsibility of the board to determine the risks acceptable to take and how to manage them while safeguarding shareholder interests. The board must develop risk assessments, establish guidelines to guide its own actions and those of the manager, and establish accountability systems to support the board’s responsibility to steward its duties.