Boards are always dealing with sensitive and confidential information, whether they are in government, business or nonprofit organizations. They have a fiduciary duty to protect the interests of shareholders and other stakeholders, which is why they need to be able discuss issues without fearing about their decisions being revealed.

A secure portal for boards that can only be accessed by people with the right password, is a vital method of protecting sensitive board documents. It can also be beneficial to create policies for the safe storage and disposal of physical paper documents. The final point is that using a board software that permits secure sharing of files is an excellent method to ensure that you are not a victim of access violations.

Many organizations fail to take this precaution even though it could seem obvious. This is especially true for board meetings. A leak of confidential information could cause damage to the reputation of a company, and it could even result in legal ramifications for the directors of the company as well as the company.

A confidentiality agreement can be a powerful tool to keep secret documents confidential. However, it can be difficult to enforce. A confidentiality policy for a board should include clear consequences for anyone who breaks the conditions of the agreement, for example, fines or discipline measures. Additionally it should outline what kinds of information should be kept secret and include security protocols such as encryption and the use of only approved platforms for communications.

www.dataroomabout.com/advantages-of-having-a-virtual-data-room/