Remote corporate governance tips

Remote corporate governance tips: a corporate governance training guide on what to remember if your role involves remote work

In the 2010s, technology began offering widespread opportunities to work remotely. Then the pandemic hit, and those opportunities skyrocketed; although on-site working has seen a resurgence since, the option to stay online has persisted, and likely will in future. 

For boards in the 2020s, the change opens the door to many opportunities, but it also raises questions that each director will have to answer to ensure continued success. 

For example, remote working might allow boards to recruit a director with perfect credentials, but who lives quite far away from company HQ. At the same time, remote working means the board will need to take steps to ensure the same kind of constructive environment for discussion is facilitated at online meetings.

Here are some tips to getting that right.

Effective remote governance begins with the use of reliable and secure technology. Companies should adopt secure communication platforms that offer encrypted messaging and video conferencing. Regular virtual meetings are crucial, as they maintain face-to-face interaction, build trust, and foster collaboration. 

Additionally, real-time communication tools, such as shared documents and messaging platforms, can facilitate ongoing discussions and decision-making outside of scheduled meetings.

Clarity in roles, responsibilities, and expectations is essential for remote governance. Every board member and executive should clearly understand their duties within the remote framework. 

Even though you’re working remotely, you should set clear expectations for attendance, participation, and preparation ensures that remote meetings are productive and that all members are fully engaged.

Working online is a huge opportunity but is also carries huge digital risks and makes your company vulnerable to bad actors unless you prepare in advance. 

Because of that, your board must implement strict access controls, limiting sensitive information to those who need it. Regular security audits should be conducted to ensure that digital tools stay secure. Additionally, consider cybersecurity training for all your board members and executives; it may be the key in mitigating the risk of data breaches or cyber-attacks.

Virtual meetings are the cornerstone of remote governance. To maximise their effectiveness, meetings should be well-prepared, with a detailed agenda shared in advance. This keeps discussions focused and on track. Encouraging participation from all members is vital, and tools like polling or round-robin discussions can ensure that diverse opinions are heard, and that nobody disappears into the corner of a screen. 

Although live meetings are best, recording them (with proper consent) can also be valuable if someone has missed the meeting, or if you need to refer back to it later.

You might be tempted to think of a remote meeting as a tick-box method of staying in touch, and that real development will come from the next in-person gettogether. This is a mistake. 

You can still foster continuous development and education of board members while working remotely. Keep the focus on ongoing governance learning opportunities related to corporate trends, regulations, and remote management practices. 

Additionally, virtual team-building activities can help strengthen relationships among board members, fostering a more cohesive and effective governance team.

In a globalised business environment, it’s easier – and often beneficial – to hold meetings across multiple time zones time zones and cultures. This carries problems of its own if you don’t respect the differences on your team. Ensure you schedule meetings and deadlines at times that make sense for everyone. Be aware of upcoming holidays and national events that only affect some of the board. 

And whatever you do, schedule meetings according to a universal standard – e.g. “we’ll begin at 14:00 UTC+1” rather than “we’ll begin at 2pm Paris Time” – to avoid potential mix-ups. You’d be surprised at how easy they can happen.

Staying up-to-date with corporate governance regulations is crucial, especially as they may evolve to address the challenges of remote governance. Regular reviews of compliance-related issues should be conducted to ensure that remote operations adhere to all relevant legal and regulatory standards.

Finally, companies should regularly assess the effectiveness of their remote governance practices. Feedback from board members and other stakeholders can provide valuable insights into areas for improvement. Continuous evaluation and refinement of governance processes are necessary to keep pace with changing business needs and technological advancements.

Remote corporate governance is not just a temporary solution but an essential component of modern business management. It carries a lot of potential, as long as the associated risk is managed properly. The tips above will give you some measure of control over your remote governance operations. 

But remember, every business is different, so if you think there are more tasks to add to the list above, do it.