In a fast-changing world of risks and challenges, the board’s primary duty is to ensure that they provide oversight for the corporate mission. A board of directors works independent of the management of a company and is focused on the company’s major issues rather than its day-to-day operations. It establishes policies, formulates corporate strategies, evaluates executive reward and compensation, provides suggestions on financial matters, invests in the company, and manages the risk.
In executing this duty, a board should make decisions that they believe will promote the success and growth of the corporation. This includes taking into account the following key elements:
Recognizing and analysing the possible risks that an enterprise may face. The board must determine and evaluate the financial, security, and legal risks of the company. It should also formulate strategies to mitigate risk that could be caused by new and emerging threats such as climate change, artificial intelligence, digital currencies, geopolitical crises, ESG and many more.
It must ensure that the company is operated lawfully and in compliance with applicable regulations. This includes ensuring that the company keeps accurate financial records and pays taxes, as well as providing adequate disclosures to shareholders and other stakeholders.
Finding and evaluating key people. The board must recruit qualified individuals to serve in the positions of president and chair, secretary and treasurer (or combined secretary/treasurer), and other officers as necessary. This means setting criteria for choosing members of the board, reviewing applications as well as conducting interviews http://www.boardroomnow.info/govenda-boardbookit-functions-and-pricing/ and deciding on candidates.
Helping the new and current members of the board. It is the responsibility of each board member to assist each succeed in achieving their goals. It is important that board members attend meetings either in person or online, participate, and share their knowledge and experience.