Board Insights | Winter 2022

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WINTER 2022

FINANCIAL SERVICES

Board evaluations help build investor, regulator confidence

Build Back Better Act continues to evolve

Elevate ESG initiatives and reporting

The great resignation

to collecting Board members’ anonymous responses and ratings on their experiences and expectations. The data is used to enhance effectiveness by adapting Board leadership to address short-term issues, ensure business continuity and support succession planning. Below are some questions for your Board to consider when establishing an evaluation program or refreshing a program already in place: • Does the evaluation process elevate Board performance and anticipate stakeholder questions and expectations?

Board evaluations help build investor, regulator confidence

(ESG) strategies and employee and customer health and safety matters, to name a few predominant issues.

By Heidi Cieslik

Agile financial services providers are meeting these demands by deploying rigorous evaluations on a regular basis. Such ongoing evaluations can help satisfy evolving stakeholder demands, and help directors proactively identify, mitigate and address risks, financial and otherwise. They also drive Board engagement, promote effective Board interactions and foster Board member satisfaction, dynamics that can have positive impacts on operations and performance.

Financial services companies are increasingly disclosing more information regarding their Board structure, membership, oversight responsibilities and third-party relationships due to their critical role in providing reliable governance. This “transparency trend” reaches beyond financial affairs. Globally, companies are being pushed to report on a broad range of activities related to overseeing and evaluating cybersecurity policies, data integrity and breaches, Environmental, Social and Governance

Board and committee assessments coupled with individual director peer reviews, often facilitated by a third-party, are commonly being adopted as a comprehensive approach

• Does the evaluation process identify areas of strength and areas for improvement, including specific actions that can be taken to enhance Board performance and overall effectiveness? • Does the evaluation process result in full participation from Board members and elicit meaningful information, comments, constructive criticism and healthy debate? • What is the appropriate format and frequency for evaluations – at all Board meetings, following committee meetings or another schedule? Rehmann’s extensive experience with financial services organizations delivers wide-ranging services designed to drive Board effectiveness. We can help you develop an evaluation program to fit your organization’s unique needs. heidi.cieslik@rehmann.com | 248.458.7914

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