The article cites instances from NASA (HST), Volkswagen and Wirecard to show how boards are prone to miss early warning signs that can lead to a risk. It stresses the importance of not just recognizing these warning signs, but also to take action upon them. This can be achieved through an effective review process for boards, which helps them evaluate their performance and effectiveness.
The authors emphasize the importance of boards reviewing their own performance and that of the rest organisation to find areas for improvement. They also stress the importance of utilizing outside experts’ expertise to ensure the agenda of the board is complete.
A board room review is a process that evaluates the effectiveness of the board of directors with respect to the needs of the business. It could be a regular internal assessment utilising an affordable world-class benchmarked questionnaire such as those from Board Surveys or a more unique external evaluation look here grbestpractices.org/boardpaq-review/ that is customized to the needs of the business.
It is essential that the boardroom is an area where members are able to communicate freely and honestly. They must be able to concentrate on their task without being distracted or interrupted, and be at ease discussing sensitive issues. A conference room with large chairs and tables that resemble trestles can be helpful. It should also feature an environment that is soundproofed to ensure that conversations are kept private. The latest technology, such as Bloomberg plug ins or the modern quotation systems will aid. A virtual meeting room permits members to take part in meetings at their workplace, home, or even on the plane. This helps to make the process easier.