The article cites examples from NASA (HST), Volkswagen and Wirecard to illustrate how boards may miss early warning signs that can lead to a risk. The article stresses the importance of recognizing early warning signs and then acting upon them. This can be done through an effective board review process, which helps boards assess their own performance and effectiveness.

The authors emphasize the need for boards to examine their own performance, as well as the performance of the entire organization, to find gaps and opportunities to improve. They also stress the importance of using outside consultants’ expertise to ensure the agenda for the board is comprehensive.

A board room review is a re-evaluation of the effectiveness of the board of directors in relation to the ideal demands for the business. It could be an annual internal review that uses a cheap world-class benchmarked questionnaire such as those from Board Surveys or a more distinctive external evaluation that is customized to the requirements of the company.

It is vital that the boardroom be an area where people can freely and candidly discuss issues. They must be able concentrate on the task at hand without being distracted or interrupted and they should be at ease discussing sensitive subjects. A conference room with large trestle tables and chairs, a quiet space to ensure conversations are private, and the latest technology like Bloomberg plug-ins, or the latest quotation systems can assist. Virtual meeting rooms can allow members to participate in meetings from their homes, offices or even on planes, helping to facilitate the Board Resolution process for them and their colleagues.