Boards are always dealing with sensitive and confidential information, whether they are in business, government or nonprofit organizations. They are bound by a fiduciary obligation to protect the interests of shareholders and other stakeholders, which is why they should be able to talk about issues in a relaxed manner without worrying about their deliberations being publicly exposed.
A secure portal for boards which is accessible only by those who have the appropriate password, is a vital method to safeguard sensitive board documents. It is also beneficial to establish policies for the safe storage and disposal physical paper documents. Additionally, using a board application that allows secure sharing of files can be a great way to prevent access violations.
While it may seem obvious to avoid putting confidential data on websites that are public, many companies do not take this precaution. This is particularly true for board meetings. Information that is leaked could damage the reputation of a company, and could result in legal ramifications for the directors and the company.
A confidentiality agreement can be an effective tool to ensure that documents are kept private. However, it can be difficult to enforce. A confidentiality policy of the board should contain clear penalties for anyone who breaks the boards confidential documents terms of the agreement such as fines and discipline actions. Additionally it should clarify what kinds of information should be kept private and include security protocols, such as encryption and the use of only approved platforms for communications.