Boards are always dealing with sensitive and confidential information, no matter if they are in government, business or nonprofit organizations. They are accountable to safeguard the interests and stakeholders of shareholders, so they must be competent to discuss sensitive matters without fear of their deliberations becoming public.
The creation of a secure portal for boards which is only accessible to those with the right password is the best way to ensure that sensitive board documents are secure. It can also be helpful to develop policies that ensure the safe storage and disposal of paper documents. Also, using a board application that permits secure sharing of documents can be a great solution to avoid access violations.
While it may seem obvious to avoid putting confidential information on public websites, many organizations fail to take this precaution. This is particularly true for board meetings. Unsolicited leaks of confidential information can cause damage to an organization’s reputation, and it could even result in legal ramifications for the company and its directors.
A confidentiality agreement can be an effective tool to keep secret documents confidential. However, it is difficult to enforce. A board’s confidentiality policy should include clear consequences for those who violate the terms of the agreement for example, fines or discipline actions. It should also outline the kinds of information that should be kept confidential and include security protocols, such as encryption and only use approved platforms for communication.