No matter if they are for businesses, government or non-profit organizations, boards are required to deal with confidential and sensitive information on a daily basis. They have a fiduciary duty to protect the interests of shareholders as well as other stakeholders. Therefore, they must be able to discuss issues without fearing about their decisions being revealed.
The creation of a secure portal for boards which is only accessible to those who have the correct password is a key way to ensure that your board documents are safe. It is also helpful to create policies regarding the safe storage and disposal physical paper documents. Also, using a board app that allows secure sharing of files can be a great way to avoid access violations.
Many organizations do not take this step even though it might appear obvious. This is particularly true for board meetings. Unsolicited leaks of confidential information can hurt the image of a company and may even result in legal consequences for directors and the company.
A confidentiality agreement can be a powerful tool to keep secret documents secret. However, it is difficult to enforce. A policy of confidentiality for a board should clearly define the consequences for violating the agreement. This could mean sanctions, fines, and disciplinary actions. It should also specify the types of information that should be kept private and include security protocols, like encryption and only utilize approved platforms for communications.
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