Governance isn't a palpable thing, which makes it somewhat hard to define. Not being able to define it, touch it, see it or hear it also makes it difficult to know whether governance is good, bad or mediocre. While all that may be true, board directors will easily be able to recognize the effects of good governance when they happen.
While defining governance as a concrete thing isn't really possible, we can put together a list of characteristics that, when viewed collectively, form the basis for good governance. Good governance doesn't require board directors to make good decisions every single time. However, it does require boards to make the best decisions they possibly can. The best possible decisions require using the best risk management processes, which includes gathering information, evaluating that information and using it to guide the direction of the company. Once strategic plans are moving along nicely, boards need to practice oversight to make sure that their plans are being implemented.
Essentially, there are eight main tenets of good governance. The question is, "Does your board portal provider support these eight components? If so, how? And is your board technology working well enough for you to fulfill your board duties so that you can make the best decisions that you possibly can?"
One of the major recent topics surrounding board director appointments is diversity. Board directors need to consider including participation from men, women and members of different ethnicities on their boards. Boards also need to consider the board composition in terms of skills, abilities and talents. Boards need to be able to build trust so that all board members can offer their ideas and strengths to the boardroom.
Boards gain much from electronic director evaluations. First, they learn how in sync they are with the organization. Second, they learn more about the weaknesses and deficits of current board members and the whole board, which should lead to a more refined approach to director recruitment. Director evaluations are a valuable portal tool, as they point to areas where directors need more training, education and skill enhancement.
Above all, good governance must include a robust security system that covers all electronic applications for preventing against cyberattacks.
Just as governance has many components that work together to bring forth the best sets of ideas, experiences and talents to achieve the best outcome for the success of the organization, a board portal provider that supports good governance also has many components. A board portal, in and of itself, really isn't enough. Board portals that support good governance also electronically support every process that board directors use, including D&O questionnaires, director evaluations, communications, minute-taking, resolutions and voting, and entity management.
While defining governance as a concrete thing isn't really possible, we can put together a list of characteristics that, when viewed collectively, form the basis for good governance. Good governance doesn't require board directors to make good decisions every single time. However, it does require boards to make the best decisions they possibly can. The best possible decisions require using the best risk management processes, which includes gathering information, evaluating that information and using it to guide the direction of the company. Once strategic plans are moving along nicely, boards need to practice oversight to make sure that their plans are being implemented.
Essentially, there are eight main tenets of good governance. The question is, "Does your board portal provider support these eight components? If so, how? And is your board technology working well enough for you to fulfill your board duties so that you can make the best decisions that you possibly can?"
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The Rule of Law
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Accountable
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Transparent
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Cost-Effective
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Responsive
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Equitable and Inclusive
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Effective and Efficient
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Participatory
One of the major recent topics surrounding board director appointments is diversity. Board directors need to consider including participation from men, women and members of different ethnicities on their boards. Boards also need to consider the board composition in terms of skills, abilities and talents. Boards need to be able to build trust so that all board members can offer their ideas and strengths to the boardroom.
Boards gain much from electronic director evaluations. First, they learn how in sync they are with the organization. Second, they learn more about the weaknesses and deficits of current board members and the whole board, which should lead to a more refined approach to director recruitment. Director evaluations are a valuable portal tool, as they point to areas where directors need more training, education and skill enhancement.
Above all, good governance must include a robust security system that covers all electronic applications for preventing against cyberattacks.
Just as governance has many components that work together to bring forth the best sets of ideas, experiences and talents to achieve the best outcome for the success of the organization, a board portal provider that supports good governance also has many components. A board portal, in and of itself, really isn't enough. Board portals that support good governance also electronically support every process that board directors use, including D&O questionnaires, director evaluations, communications, minute-taking, resolutions and voting, and entity management.
What is the Governance Cloud?
Board directors are obligated to perform a host of varied duties and responsibilities. Diligent developed a suite of governance tools to help them fulfill their responsibilities accurately and efficiently. The Governance Cloud ecosystem of products includes:- Diligent Boards
- Director and officer questionnaires (pre-filled forms)
- Board evaluations
- Resolutions and voting
- Diligent Messenger
- Diligent Minutes (beta)
- Insights (curated content and videos) (beta)
- Entity Management