It doesn’t matter if it’s for organizations that are government, commercial or nonprofit organizations, boards have to deal with confidential and sensitive information on a regular basis. They are required by law to protect the interests of shareholders as well as other stakeholders, therefore they need to be able discuss issues without fearing about their decisions being disclosed.

A secure board portal that can only be accessed to those with the correct password, is an important way to safeguard the board’s sensitive documents. It can also be helpful to establish policies for the safe storage and disposal of physical documents. Finally, using a board software that permits secure sharing of files is a great method to ensure data room about that you are not a victim of access violations.

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

A confidentiality agreement is a vital tool for keeping secret documents confidential, but it isn’t always easy to enforce. The policy of the board on confidentiality should clearly define the consequences of violating the agreement. This could include penalties and disciplinary action. In addition it should outline what kinds of information should be kept confidential and include security protocols such as encryption and the use of only approved platforms for communication.