Security is the obvious and primary concern when using email or PDFs to disseminate sensitive board information (for an in-depth discussion, see our e-book on email security). But there are other worrisome consequences that arise when resorting to email and PDFs for board communications. All of which hinder, sometimes to a significant degree, the ability of the board to adequately prepare, remain engaged, and conduct productive board meetings.
In this post, we discuss some of the pitfalls of using email and PDFs for board communications, and highlight how board portals can address these.
Dangers, Risks, and Challenges of Using Email and PDFs in the boardroom
A.) LACK OF SECURITY AND PRIVACY: AN ONGOING CONCERN
For purposes of discussion, we can broadly define security as restrictive, controlled access to systems, processes or data. Privacy, on the other hand, has more to do with owning and controlling data.
- Security Implications of Email
Email inboxes have always been prone to hacking. Since boards possess mission-critical and sensitive organisational data, they have become prime targets for cybercrimes — such as whaling. Board members are inadvertently tasked with ensuring that they have adequate digital security measures in place to limit their exposure to these vulnerabilities.
- Privacy Implications of Email
While most personal email providers pride themselves on being secure, there can be questions around data ownership and data governance. After all, information is stored in servers under another party’s control. In this light, data privacy policies are always worth a second look, especially when it comes to data collection, tracking, transparency, third-party access and determining exactly how information is used.
THE ADVANTAGE OF BOARD PORTALS
The best board portals are designed and developed with security considerations from the get-go. It remains in focus across the product’s development lifecycle. Board portals implement multi-defence frameworks to prevent data breaches and protect board communications. Email security can often fall short in this regard.
Board portals, such as Boardlogic, adhere to strict Data Privacy Policies. It serves organisations well to determine whether their board portal providers meet the standards of data privacy-certification bodies. Praxonomy, for instance, is a member of the Verasafe Privacy program. Membership to this program ensures that personal data processed within the Boardlogic application follows external data governance and data security standards set by Verasafe’s Privacy Program Certification Criteria. It requires that participants maintain a specific standard for data privacy and implement best practices pertaining to notice, onward transfer, choice, access, data quality, recourse and enforcement.
(As a side note, pay close attention to where the data centres of board portal providers are located. For Boardlogic, all client data resides in secure data centres in Amsterdam. It was a strategic choice to ensure that client data is protected by GDPR, and any notices served on Praxonomy for the production of data will have to be subject to Dutch law.)
Security and privacy of client data and communications are paramount. It’s fair to say that most board portal providers recognise the criticality and importance of the information they hold.
B.) WEAK DATA RETENTION STRATEGIES: A COMPLIANCE RISK
In the UK, the Companies Act (2006) requires boards to maintain meeting minutes for at least a period of 10 years from the date of the meeting.
Retaining PDFs on one’s local drive or storing information on email inboxes are not ideal for document retention purposes. In the event that a device gets lost (or becomes obsolete), board materials and workflows are compromised. It becomes exponentially difficult to comply with audits and regulatory or legal requirements.
THE ADVANTAGE OF BOARD PORTALS
With board portals, boards can adopt and implement an effective document retention strategy that meets internal standards and external requirements. Board portals ensure board documents are securely stored, retained or archived for audit, historical tracking, transparency, and compliance purposes. These are not mere housekeeping tasks, but also play into the aspects of good corporate governance.
C.) LACK OF AN ORGANISED, CENTRAL HUB OF INFORMATION
Multiple and constant exchanges of emails can lead to directors and board members being inundated with information — or “information overload.” Moreover, given the number of emails that go back and forth in between board meetings, there is the risk of pertinent information being overlooked or getting lost. Email and PDFs can disrupt board efficiency and the board’s ability to locate, review, and organise meeting information.
THE ADVANTAGE OF BOARD PORTALS
As a centralised repository for board meeting information, board members can access files and documents necessary for their review at any time and from anywhere. Board portals are a one-stop shop for directors to obtain the materials they need for the board meeting. Gone are the hassles of piecing information found in emails together. The time spent on reviewing and preparing for board meetings is significantly reduced.
Some board portals have in-app messaging functionalities which minimise (or eliminate) the need for email communications. This streamlines communication amongst board members, facilitating better collaboration and decision-making.
D.) VERSION CONTROL CHALLENGES: AN ADMINISTRATIVE PAIN POINT
Those who have yet to adopt board management software usually resort to disseminating large PDF files as their board book/board packs via email. There are inherent problems to this. First, there is the email security concern. Second, it shifts the monitoring and management of version control of the PDF to board members. Updates made to the board packs can get lost in lengthy email threads. A worst case scenario is that a director invests a good amount of time reviewing the wrong version of the board pack.
THE ADVANTAGE OF BOARD PORTALS
One of the key features of board software is the digital board pack. With the digital board pack, updates and changes to board books can be made on-the-fly and these will be reflected instantly. Board members have access to the latest version of the board pack at all times, without multiple PDFs clogging their inboxes.
CONCLUSION
Emails and PDF use will always be convenient. But the risks they present for board communications will always outweigh the benefits. Board portal communications empower boards: administrative and security burdens are minimised and board engagement levels are sustained. Most importantly, a complete focus on board governance duties is restored.
For more information, please contact tim@praxonomy.com
