No matter if they are for business, government or nonprofit organizations, boards deal with sensitive and confidential information on a daily basis. They are obligated to protect the interests and stakeholder interests of shareholders. Therefore, they need to be capable of discussing sensitive issues without fear of their decisions being publicized.
Creating a secure board portal which is only accessible to those who have the correct password is a crucial step to keep sensitive board documents secure. It can also be helpful to develop policies that ensure the safe storage and disposal of physical documents. Finally, using a board application that permits secure sharing of files can be a great way to prevent access violations.
Many organizations fail to follow this rule even though it might appear obvious. This is especially true of board meetings. The leak of confidential information can damage the reputation of a company, and it can even cause legal consequences for the company and its directors.
A confidentiality agreement is a key instrument to keep secret documents private, however it isn’t always easy to enforce. A board’s policy on confidentiality should clearly define the consequences for violating the agreement. This could include penalties and disciplinary action. It should also specify the kinds of information that must be kept private and include security protocols like encryption and only use approved platforms for communication.