10/12/2007 | The questions Board Members need to ask themselves

To be an effective Board Member you need to understand the business of your organisation. It is not your role to manage the organisation, but if you do not understand the organisation’s activities, how can you contribute as a Board Member? There are four key areas where you must aim for understanding and awareness: Strategic Directions • Do you understand and endorse the organisational strategic directions? • Have you made the connection between these directions and how they help to deliver on the organisation’s mission and objects? Compliance and Risk Management • Do you understand the legal obligations which apply to your organisation? • Do you have an understanding of the nature and extent of the risks which need to be managed by your organisation in providing its services? • Are you getting information to advise you how the risks are being managed? Resource and Financial Management • Do the financial reports give you an understanding of the financial performance – is profitability increasing or decreasing? • Are sufficient resources being made available to management to achieve the strategic plan? • Have you got enough cash in the bank to pay your bills and other expenses as they fall due? Quality and Performance Management • Do you understand how the organisation is performing against its strategies and targets? • Are you getting sufficient information to show that your services are reaching the desired target groups? • Is the level of efficiency and customer service of an acceptable standard? As a Board Member you should continue to ask questions to gain better understanding, awareness and confidence in the activities of your organisation. Then you will be well placed to fulfil your governance role. Back to news archive