We live in an era of digital transformation. Digital technologies, digital data, and the new connections and relationships that arise in the process of their use, lead to fundamental changes in our life.
Board portals as an Integral Part of Effective Board of Directors, Its Main Characteristics
An effective Board of Directors is a key link in an effective corporate governance system. The efficiency of the company depends on what tasks the Council sets before the management, what questions it asks during the meetings, how carefully it checks and analyzes the information received from the management.
Effective board management is a concept that encompasses the system of relationships between the executive bodies of a JSC, its board of directors, shareholders, and other interested parties. Corporate governance is the basis for determining the goals of the company, determining the means to achieve these goals and mechanisms of the counter.
The main goals and objectives of the board portals for effective board meetings are:
- determination of the development strategy of the company aimed at increasing its market capitalization and investment attractiveness, achieving maximum profit, and increasing the assets of the company;
- ensuring the implementation and protection of the rights and legitimate interests of the company’s shareholders, as well as assistance in resolving corporate conflicts;
- ensuring the completeness, reliability, and objectivity of disclosure of information about the company for shareholders and other interested parties;
- creation of effective internal control mechanisms;
- regular assessment of the activities of the executive bodies of the company.
- approval of the general policy in the field of internal control and risk management.
- assessment of social, ethical, environmental, and other non-financial risks to which the company is exposed, as well as the establishment of an acceptable level of risks for the company and the requirement from the executive bodies to report on risk management.
- analysis and assessment of the functioning of the risk management and internal control system at least once a year.
The Best Way to Implement Effective Board Meetings
An effective board meeting establishes the main guidelines for the company’s activities for the long term, approves key performance indicators, the main business goals of the company, strategies and business plans, and controls their implementation:
- The effective board meeting annually approves the financial and economic plan (budget) of the company on the proposal of the executive bodies.
- In some cases, it determines the development strategy and evaluates the performance of the controlled companies.
- This activity can be carried out through a specially created committee of the board of directors on strategy, since this, as a rule, contributes to a better elaboration of these issues.
Board managers should not only look for new ways to manage the economic and social change brought about by digital transformation but also foster new opportunities for economic growth through digital transformation. It is not simple. The nature and impact of this transformation are constantly changing.
Besides, the importance of applying a competency-based approach and creating a competency model for a digital transformation team in the public administration system is confirmed, on the one hand, by the needs of the digital economy and technological trends, and, on the other hand, by the lack of a conscious approach to solving this issue in regulatory and methodological documents on the selection of personnel for filling positions. public civil service