www.boardroomnow.info/what-is-the-difference-between-oversight-and-management

Directors of boards have three formal responsibilities every member must adhere to. Duty of Care Board members are legally required to act in the best interest of the company, and make decisions with the mission of the business at the forefront. Duty of Loyalty — All members must put their personal and professional interests aside when making decisions for the company. Obligation to follow the law Every member has a legal obligation to ensure that the organization is in compliance with all applicable laws and adheres to sound governance standards.

Beyond these three official responsibility, boards of director have a more complex range of duties that vary according to the specific needs of each business. If your company is a publicly traded company Your board’s responsibilities likely include overseeing the CEO and making sure that the financial statements are accurate. If you’re a young company within your business, your board may focus more on setting goals for the company’s strategic direction and determining the direction of your business.

Another aspect of the board’s responsibilities is ensuring the proper balance of risk management. Your board may be required to intervene in a crisis that could harm your company’s image even if they are not legally or ethically accountable. Boards must also ensure that their members are aware of the risks of serving on their boards and are able to manage the risks appropriately.

Each board member plays an important and distinct role in helping your business grow. For this reason, it’s essential to be aware of the duties assigned to your board and how they relate to your organization’s strategic goals. Aprio’s board portal software, for example it can help you manage your duties and manage meetings efficiently.