The boards of modern companies pay considerable attention to risk management issues. The management of all levels is responsible for the formation and functioning of the risk management system. This article will review the board portal as a perfect alternative to a risk management solution.
Risk management in the corporate governance of an enterprise
Due to the high level of uncertainty and variability of the external environment for the functioning of enterprises and organizations, the risk objectively increases due to the need for organizational changes. 83% of large international corporations in the US include risk management in the top ten development priorities. It is since there is a direct link between risk management, the market value of the company’s shares, and borrowing opportunities in financial markets.
Risk management and internal controls are carried out at all levels of the organization. Thus, the board of directors must approve the company’s internal documents, which define the principles and approaches to the organization of the risk management and internal control system, as well as internal audit.
The risk management and internal control system are organized in companies to provide an objective and fundamental idea of the current state of affairs in society, its prospects, the integrity and transparency of reporting, and the reasonableness of the risks taken. It allows corporations to confidently and quickly respond to non-standard situations in the internal and external environment. The tasks of such a system in societies, first of all, are:
- minimization of activity risks;
- ensuring the safety of assets;
- ensuring compliance with legal requirements in the course of activities;
- ensuring the timeliness and reliability of all types of accounting and reporting.
Board software for risk management
The digital revolution of the past few years, accompanied by real-time communication, is increasingly demanding 24/7 availability and ever faster decisions from today’s executives. When implementing these requirements, modern answers are required – to facilitate communication and accelerate the workflow in the company along with risk management. The direction is clear: away from conventional paper documents towards digital board communication. The best solution is a board portal to simplify business records’ compilation, distribution, and updating. It enables efficient and secure communication processes at the highest management levels in companies.
Board portals are software-as-a-service offerings that allow boards to receive meeting materials and share information. They ensure secure digital storage of documents such as reports, working documents, and attachments for management, board, and supervisory board meetings, as well as archived documents from previous meetings. In addition, board portals provide governing body information such as bylaws, committee charters, and succession plans. Appointment calendars and an address book are also part of the range of functions. The governing body members can add personal comments to the documents, share their comments with other members of their choice, vote on resolutions, and participate in surveys.
To always provide the correct version of the data, it can be updated by the governing body’s secretariat with minimal effort. Access permissions can also be defined so that certain documents are only accessible to selected members. Authorizations can be adjusted at any time. In addition, users quickly realize that well-engineered board portals take up many features that have made working with paper documents practical. It includes fast browsing, setting tabs and bookmarks for a better overview, and adding handwritten annotations, markings, and sticky notes.
Regarding administration and configuration, the board software offers maximum flexibility, allowing the user to modify structures and content in the software, thus enabling the entire application to be individualized. Due to the professional system architecture and special developments, the board portal meets the highest security requirements.