For organizations that are government, commercial or nonprofit organizations, boards are required to deal with confidential and sensitive information on a daily basis. They are bound by a fiduciary obligation to safeguard the interests of shareholders as well as other stakeholders. Therefore, they need to be able discuss issues without fearing about their decisions being exposed.
A secure portal for boards, which is only accessible to those with the correct password, is a vital method of protecting sensitive board documents. It is also helpful to develop policies for the safe storage and disposal of physical documents. Finaly, using a board software that allows secure sharing of documents is a great option to avoid access violations.
Many organizations do not take this step despite it seem obvious. This is particularly true for board meetings. A leak of confidential information can harm the image of an organization and may be legally liable for directors and the company.
A confidentiality agreement is a key tool to keep confidential documents secure, but it can be difficult to enforce. A confidentiality policy of the board should include clear consequences for those who violate the terms of the agreement, like fines and disciplining actions. Additionally it should specify the types of information that must be kept secret and include security protocols, such as encryption and the use of only approved platforms for communications.
