Board Communications

Securing Executive Board Communications

Corporate governance: Keeping up with the changes

Corporate governance is undergoing rapid change. Modern Governance tools, particularly a high-quality board portal, enable boards keep up with those changes.

Australia has been one of the leading jurisdictions for corporate governance reform, according to a study by the Workers’ Capital project at RMIT University in Melbourne.

“Considerable governance reform has occurred since 2007–8 in Australia, much of it occasioned by pressure brought to bear by institutional investors as a reaction to both traditional governance failings and also social and environmental concerns such as a growing awareness of climate change. A new approach to corporate governance has emerged under the influence of investor representative bodies such as the Australian Council of Superannuation Investors that is driving change,” the study points out.

New Zealand is also seeing a rapid acceleration of changes in corporate governance. Auckland-based law firm Chapmann Tripp observes this year:

  • A continuing strong focus on culture from the ripple effects of, and the New Zealand Government’s legislative response to, the Australian Hayne Royal Commission and its New Zealand offspring – the FMA/Reserve Bank of New Zealand (RBNZ) reviews into the finance and insurance sectors.
  • Closer scrutiny of directors from shareholders, stakeholders and regulators.
  • More comprehensive disclosure requirements, arising from the new New Zealand Stock Exchange (NZX) rules and an increasing shareholder interest in sustainability practices.
  • Increased importance for boards being able to rely on manageable information flows.

Of course, boards of directors in Australia and New Zealand need the skills to be able to keep up in this rapidly changing environment. It’s essential that boards have digital skills – it’s not sufficient for boards to simply appoint a director with a tech background, or to rely on management to advise them, as the New Zealand Institute of Directors insists: “The digital capability of the board so it can navigate challenges and future success in a digital world. It may be relevant to consider whether digital capability or social media/online marketing skills are part of the board’s overall up-skilling and composition.

Board Portal manages information flows

Pressure has built up on boards of directors to guide their organisation’s strategies through the rapid changes in both the market itself, and in governance.

“With attention on corporate governance and accountability increased by the global financial crisis, there is increasing pressure on board performance and it must be subject to regular evaluation,” writes the Australian Institute of Company Directors.

Diligent Corporation has taken candid feedback from thousands of board directors to understand how they are coping with this additional pressure, and what is needed to support them in improving efficiency and performance.

Diligent has set itself on a course to play an active role in modernising governance by designing an innovative board portal that resolves many issues in managing the flow of information and gathering data from management and the organisation itself to ensure accountability.

Keeping up with the pace of modern business, today’s boards need lightning-fast information that travels along secure channels. Board directors need the flexibility to use digital tools confidentially and to share only what they intend to share with others at the same lightning speed. Today’s board directors also need a board management software system that is mobile-accessible.

Without a high-quality board portal, boards lack a central place to organise data, communicate confidentially and collaborate using a secure digital platform. The lack of an appropriate board management system is an invitation to cyber risk. When companies and their board directors resolve these issues, they effect better decision-making, increase transparency, and acquire insight that drives growth and longevity in today’s digital age.

Diligent’s board portal software gives board directors the right tools at their fingertips at just the right time to avoid risks and to take advantage of emerging opportunities.

Diligent’s board portal provides a suite of Modern Governance tools

What do boards of directors require from a board portal?

Keeping up with the pace of modern business, today’s boards need lightning-fast information that travels along secure channels. Board directors need the flexibility to use digital tools confidentially and to share only what they intend to share with others at the same lightning speed. Today’s board directors also need a board management software system that is mobile-accessible.

Diligent’s board management software gives board directors the right tools at their fingertips at just the right time to avoid risks and to grab onto emerging opportunities. That’s the basis of good governance from a modern standpoint.

The suite of Modern Governance tools that comprises Diligent Governance Cloud addresses every aspect of the board’s requirements.

The Nominations app scours thousands of candidates so that boards can find those with the right skills as well as the right chemistry. Once selected, candidates for the board can begin discussions with board members easily using the board portal’s rapid and secure communications channels.

There are tools for competitive intelligence, for understanding the market the company works in, for rapid and secure communications, virtual meeting rooms for secure exchanges of ideas, for evaluating board performance, for entity management and more.

Communication with management is facilitated by regular exchanges of ideas within the portal’s secure environment.

A world of governance knowledge informs Diligent Governance Cloud.  

Good governance isn’t just one thing – so why buy software that only manages your board documents? At Diligent, we empower leading organisations around the world to turn good governance into a competitive advantage for their business. In the ever-changing landscape of the world, governance hasn’t kept up with the fast pace of business. Quarterly board meetings, paper board books and not using secure communication tools for sensitive data have opened up numerous companies to risk.

With Diligent Governance Cloud, boards can gain a competitive edge to improve governance by having the right information, analytics and insights to spot risks, act on opportunities and turn insights into action.

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