Individuals qualified to sit on the board of directors are smart, politically astute and likely will be referred by someone currently affiliated with your organization. Simple search engine results, public filings and dedicated websites such as Glassdoor.com can provide a perspective on how effective an organization is at managing a wide range of risks.
Potential board members will be very mindful when evaluating whether or not to join your organization’s board. How it impacts their reputation or increases their risk personally and professionally will be a serious consideration. Director & Officer (D&O) insurance is very common, but even the best policy cannot eliminate the stress associated with being individually named as a party in class action lawsuit that has unfortunately become very common for board members.
Some board members may have extensive expertise or operational experience in specific areas that the organization may find valuable. Joining a board may take some potential candidates into new areas of responsibility. They may now be asked to oversee risks that goes beyond their previous assigned responsibilities or professional experience. Having a solid new board member on-boarding program and dedicated external advisors that can help educate them on areas of new responsibilities may be the difference between landing a top director candidate or not.