Taking risk is part of running a business but in today’s environment, it may seem like every move comes with a certain amount of unexpected risk. The level of emerging risks, both predictable and unpredictable, is high, so it’s no surprise that boards are having to spend more time than ever on this issue.

More than three-quarters (77 percent) of the directors polled as part of the Director Confidence Index survey in July, conducted by Diligent Institute and  Corporate Board Member, say their full board is having regular conversation around new risks and what they mean for the company, with nearly half saying they’re discussing ERM more frequently today than in years past.

So much so that 56 percent say they have formalized enterprise risk oversight in governing documents (including charters)—a trend that aligns with other research out of the Diligent Institute. “This is a growing trend, even when it comes to matters such as ESG for instance,” says Dottie Schindlinger, executive director of the Diligent Institute. “In our recent 

 report, we found that of the directors who had changed their company’s ESG oversight in the last year, about a third (30 percent) had formalized oversight in governing documents.”

Meanwhile, only about a quarter (27 percent) of our respondents said they had created a dedicated risk committee outside of audit despite increased activity around risk in the boardroom—and despite the fact that the audit committee’s remit has been expanding significantly in recent years.

For now, ERM remains anchored in the audit committee for most boards, though 42 percent of those we surveyed said if they could improve their board’s oversight of risk, they would bring the ERM conversation out of the committee to the full board more frequently.

The desire to involve the full board in deeper-dive conversations isn’t entirely new. In our 

survey, conducted in partnership with Corporate Board Member and BDO USA, we found only 17 percent of directors who believe the delegation of such issues to a committee or working group could improve a board's ability to oversee company risk. As one director noted, “Is committee feedback adequate to inform all directors of committee deliberations?”

Nevertheless, directors in general feel confident in their organization’s enterprise risk management plan, rating it a 6.6 out of 10 in terms of maturity level—slightly above average, inching toward “Mature” according to our 10-point scale.

To get higher up on the scale, directors say there’s one element they need: better benchmarking data (45 percent). This is not all that surprising considering that only a quarter of respondents said their board had incorporated new data or solutions into the enterprise risk oversight in recent years.

“The risk oversight landscape has changed drastically in the past few years, and companies’ ERM programs have matured as a result,” said Schindlinger. “As that happens, the data and insights available to the board needs to reflect this evolution. Directors are voicing an acute need: they need the right technology to surface information about enterprise risk to help them make informed decisions.”

Board members seek ERM benchmarking data

Keeping board members engaged can demand substantial time and energy from the board secretary or clerk. To be effective in the role, you have to remind without nagging, support without suffocating and keep the board on track without fostering resentment.

It’s a fine line to walk, but there’s good news: technology and a fresh board member development strategy can help.

What are the benefits of embracing technology?

The introduction of new people to the board provided 

 with the opportunity to pursue a solution to enable the board to lead with greater efficiency and confidence.

 has seen their board meetings run more efficiently with board members able to review and annotate documents with ease as they prepare for meetings.

Here, we’ll take a look at some of the challenges board administrators face in fostering board engagement, how you can reimagine board member development and how to follow the path to an effective technology solution.

Challenges board administrators face with engaging their board members

You may face some or all of these difficulties as you manage the needs of your organization’s board, all of which can lead to disengaged board members:

 Board members are often busy people even before they begin their service. And the staff of mission-driven organizations are similarly doing more than time permits.

 Organizations can struggle with not enough information or information that is hard to access, and trustees will disengage if they cannot find the information they need when they need it.

 When onboarding is a one-and-done experience, board members can be excused for not always understanding what they should and must be doing. An uncertain board member may pull away from service opportunities.

A board that is not engaged will struggle with effective decision-making — something you’ll see in living color when members are not prepared for the difficult discussions around board meeting agenda items.

3 obstacles in implementing technology solutions and board development initiatives and how to address them

While tools and resources that support board work — from new training opportunities to a board management solution — can increase board engagement, you may be facing resistance in adopting new solutions for a number of reasons.

Your board and staff may find the familiarity of training and communications resources to be hard to let go of, and in this era of overload, they may feel new solutions will just complicate the work.

With a tool designed specifically for the work — a board management solution — board members and administrators will find that their service will be simplified within a single, easy-to-use location. And by incorporating training into the board management solution, board members can take charge of their own learning, seeking out development on their own schedules.

There is never enough money to accomplish everything the organization sets out to do. However, finding a tool that both creates efficiencies and replaces multiple complicated and time-consuming tools can be a win-win for your organization. Plus, development materials can be reused by multiple generations of board members, leading to new cost efficiencies.

The board may feel that spending precious service time learning a new tool or topic is hard to swallow. For any new tools the board is asked to use, the members should understand the time and effort savings they will experience after investing the time to learn.

Board development and its importance for engagement

Fostering an attitude of constant learning — of which technology is one small part — is a great way to keep board members engaged and contributing effectively. After all, the next great solution can come from anyone at any time.

Everboarding means there is always something new to learn. Board development should extend throughout service, starting with a robust onboarding process and continuing into specialized training about board service as well as nuances of your organization, its mission and related topics. Board members require training around cybersecurity, stewardship, communications and more to be effective and engaged in their roles.

Also, throughout the process, not only by marking service milestones and wins, but by putting extra effort into helping board members see the results of their work. Acknowledging your board members regularly can also keep them enthusiastic about coming prepared for board meetings and contributing effectively to the governance of the district or community college.

The role of technology in board engagement

Many organizations have found technology is an effective tool for engaging with any audience. So, when you’re working on developing your board’s engagement, it’s no wonder technology is part of the solution.

Consider what your board management software can offer the board:

Facilitating secure communication and information sharing

Board members need to be able to work with each other and with leaders and administrators to provide effective guidance. When communication is fragmented across multiple tools, their messages get muddled. Implementing a single tool for board communication keeps board member focus where it belongs with no undue distractions.

Strategic planning is among the most important responsibilities public education boards undertake, and they can take a lot of time. Diligent Community can help simplifies strategy development by enabling goal tracking. And board members can easily click to view supporting materials when preparing for meetings.

Streamlining board operations and saving time

Focusing board work in a single platform simplifies work for both the board and staff. Trustees can work from dashboards to find their current asks, search easily for stored documents and complete their service from multiple devices, wherever they are.

By making information easy to find, board management software reduces the risk of frustration and encourages board members to take ownership of their own learning and participation.

With workflow management, communications, meeting tools and robust document storage and searchability, board software helps support all stakeholders: the superintendent, school board members, board secretary and the public, they can all benefit from having a central solution to find key information and work more effectively together.

“In Fairfield County School District, using our board management software has allowed our stakeholders to SEE the work of the board and gives them accessibility to those things that will directly impact them and their children. Transparency is important, it is vital to the success of our board.” - Gervonder Brown, Executive Assistant to Superintendent, Fairfield County School District

3 actionable steps to better board engagement

So, where do you go from here? Consider what comes next:

Review your onboarding and ongoing training processes.

 Where can you build in more engagement throughout the board member lifecycle?

Look at simple ways to start building in engagement activities to your processes.

 Check who is attending and contributing to keep on top of disengagement and understand where to direct more attention.

 A solution provider with extensive public sector experience, like Diligent Community, is ready to join with you to make engagement even easier. Reach out to begin building your adoption strategy.

Technology and board development are two crucial tools to help improve your organization’s performance and meet your mission and goals. Lack of trustee engagement can really stand in the way of your board and organization reaching its full potential. By considering a board management solution for your organization, you can give the board what it needs to be better engaged and prepared for service.

Diligent understands that public education board members are a vital resource for every mission-driven organization, and we have designed 

 to encourage and support their full engagement. Let us know how we can help you and your organization.

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Board members seek ERM benchmarking data

Leveraging technology and development to engage your board members

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Board members seek ERM benchmarking data

Leveraging technology and development to engage your board members

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Your Data Matters

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