Original Source: Board Effect by Jeremy Barlow

Who is responsible for the quality of board reports—management or the board? If you said both, you’d be correct. Boards function best when they receive reports that have enough information for them to develop business strategies for short and long-term growth. Boards that don’t fully analyze trends and data run the risk of making poor decisions, which may lead to increased liability for the directors. What happens when the board receives reports with too little or too much information? What happens when pertinent information is missing?

The board of directors has a responsibility to set management’s expectations and provide directions for them on the type of information they need. Moreover, the board needs to put processes and controls in place to ensure that the information they receive is relevant and timely. Senior management has a mutual responsibility to make sure the reports are thorough, yet not so lengthy that board members won’t read them. Best practices for board reporting will help you cover all of your bases…

Contributors: Open Source
Categories: Industry Articles, SIG U Resource
SRC Type: Risk Management, Sourcing Management, Third Party Management