It takes a very skilled and able leadership team to run the corporate affairs efficiently. Board Directors play a very crucial role in the providing overarching leadership function and ensure that the company is governed as per the guidelines.
- They are responsible for strategic planning and business oversight for the companies where they serve as directors.
- They have to ensure that the company complies with all requirement laid down by various regulators and governing bodies.
- Their business acumen has to be very effective in order to identify, understand and facilitate smooth the functioning of the company. They have to ensure that the management is executing the functions as per norms set by the company.
- In order to play their function efficiently, they have to be well-informed about latest rules & regulations as well as know the new market trends that could impact the company.
- They need to have a very strong understanding of the environment in which the company operates and have contingency plans to address any unexpected turn of events.
- They have to also identify the immediate and long-term risks that the company can be exposed to and deliberate on the set of solutions that would work out best for the company.
- They should have the capacity to take tough decisions in the interest of the company.
- They are also responsible to have a hawks eye view of the company’s functioning and identify deviation from the predefined path and bring course correction if needed. They should re-evaluate the position of the company from time to time.
- They should be ready to avert any potential crises or manage a developing and unavoidable crisis effectively in order to protect the company from harm.
- They should always encourage transparent communication within and outside the company. This enhances the trust of the shareholders and other important stakeholders as well as governing authorities.
- They need to be well networked with the authorities to gather important business intelligence and possible policy changes that can play a major role in deciding the future of the company.
They should have the eye to identify the most efficient human resources that would occupy the top level and middle-level management position. This skill proves to be very crucial in deciding the successful functioning of the company.