The Hidden Costs of Reducing Your Board Management Software
A lot of businesses are cutting back on spending because the economy is so uncertain right now. PwC says that 75% of CEOs around the world expect growth to slow down in the next year. One-third of them say they are “highly exposed” to inflation and market swings. More than half of businesses are already cutting costs in response.
When boards and executives are looking for ways to save money, they often look at technology, like board management software. It might seem like stopping your portal would save you money at first. But the truth is much more complicated. Taking away your board management solution can lead to costs, risks, and inefficiencies that are greater than any short-term savings.
Before you make that choice, think about these 13 hidden costs.
Risks That Lead to Costs That Aren’t Expected
1. Data breaches and damage to reputation
Taking sensitive board data off of a secure, encrypted platform makes it more likely to be hacked. Breaches can reveal strategic plans, audit data, or competitive insights. Fixing damage to your reputation is much more expensive than preventing it.
2. The cost of ransomware is going up
Ransomware is now one of the biggest threats to businesses. Costs include downtime, lost revenue, higher insurance premiums, and fines for not following the rules, in addition to paying the ransom. Dess Digital Meetings is an example of a secure board portal that has built-in protection to lower these risks.
3. Communication inside the company that isn’t safe
When boards don’t have a safe platform, they have to use email or messaging apps, which are easy to hack, leak, and make mistakes. Sending documents to the wrong person or letting someone in without permission can cause problems with compliance and reputation.
4. Risks of not following the rules
A modern portal makes compliance easier by bringing together all the documents, training materials, and onboarding materials in one place. Without it, boards are more likely to make mistakes when they are in charge.
5. Breaking fiduciary duties
There are legal duties that directors must follow. Without structured governance tools, boards might not do their jobs right, which could leave the organization open to attack.
6. Bad handling of conflicts of interest
Governance loses credibility if conflicts aren’t tracked and reported correctly. A safe system makes sure that conflicts are reported, logged, and handled properly.
Costs of Effectiveness and Efficiency
7. Time wasted
It takes a lot of time for staff and board members to manually send out agendas, reports, and updates. Version control that involves printing, mailing, and following up not only takes longer but also costs more.
8. Less effective board
Directors make decisions based on old or incomplete information when they don’t have easy access to the most recent documents. That makes it harder to make decisions and slows down governance.
9. Making the wrong choice costs money
When important information is missing or out of date, bad decisions happen. The costs of bad decisions can be much higher than the costs of software.
10. Delays in onboarding
New board members need to be able to see policies, governance documents, and past reports right away. Onboarding takes longer, is done by hand, and is not always the same without a portal.
Costs of ESG and Investment
11. The chance of losing investors
Investors put a lot of value on openness, responsibility, and good governance. If boards don’t use digital tools, they might seem inefficient or not following the rules, which could make people less likely to invest.
12. Problems with sustainability
Board portals make it less necessary to print and mail things. If you take them away, paper waste or broken cloud storage will have a bigger carbon impact, which goes against ESG commitments.
13. Problems with accessibility and diversity
A modern portal makes sure that all directors, no matter where they are, how skilled they are, or how good they are with technology, can safely get what they need. Without it, boards risk missing out on important points of view and weakening their commitment to diversity.
The Real Value of a Board Portal
It’s important to save money, but not all technologies should be cut. Dess Digital Meetings does more than just digitize board packs. It lowers risks, makes it easier for people to work together, makes sure everyone follows the rules, and makes governance more effective.
By keeping your board management software in place, you’re not only keeping things easy, you’re also protecting your organization’s reputation, security, and long-term value.
