Communications With Board Members Exposing Security Risks

Outdated communication methods are leading corporate boards to essentially become dangerous security gaps, according to the Thomson Reuters Annual Board Governance survey. The survey of more than 125 general counsel and company secretaries across the world showed that, while corporate governance has grown increasingly complex and sophisticated, board communications are headed in the opposite direction: Printed materials are on the rise, with almost half of firms relying on paper-based board books – which average 16,000 pages per year, a 67 percent increase from the survey’s 2012 findings – and nearly 70 percent of respondents say they do not know if board members destroy all print materials. Even more problematic is the 62 percent who say they have heard of board members leaving sensitive information in public places.

There are also issues with digital communications.  More than three-quarters of respondents said they use unsecured, personal email addresses to communicate sensitive board material, and nearly half do not ensure that digital information is encrypted.

Compounding the problems is the fact that board membership is on the rise. According to this year’s survey, 43 percent of companies have more than 11 board members, up from 29 percent in the 2012 survey.