www.boardroomnow.info/govenda-boardbookit-functions-and-pricing
In a world of fast-changing risks and challenges, the board’s primary task is to provide oversight for the corporate mission. A board of directors is separate from the management of the company and is more focused on the company’s major issues as opposed to its daily operations. It formulates the corporate strategy, evaluates executive compensation and rewards, provides input on financial matters as well as invests in the company and manages risks.
In order to fulfill this obligation, the board must take decisions that they believe will enhance the performance and growth of the organization. This means taking into consideration the following core factors:
Recognizing and analyzing the potential risks that an enterprise may confront. A board must identify and evaluate the financial, security, and legal risks that are posed by a corporation. It should also devise strategies to mitigate the risks that are posed by emerging threats like climate change, digital currency, artificial intelligence, geopolitical crisis, ESG and many more.
It is essential to ensure that the company is operating legally and in compliance with relevant regulations. This includes ensuring that a company has accurate documents and records, pays taxes and makes adequate disclosures to shareholders and other stakeholders.
Assessing and identifying 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 involves establishing guidelines for selecting the board members, evaluating candidate applications and conducting interviews and selections.
Assisting current and new members of the board. Each board member has a responsibility to assist fellow board members in achieving their goals. This includes making sure they are present and active during meetings, whether in person or online and contribute their knowledge and experience to discussions.