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Board Technology Oversight

By Randi Morrison posted 09-07-2023 07:54 PM

  

Protiviti’s “Is Your Board Technology-Engaged” discusses trends in the establishment of board-level standalone Technology Committees, reasons why boards establish such committees, and alternative board technology oversight structures and approaches. As shown below, Technology Committees among the Russell 3000 have increased substantially since 2018 (as have Cyber, R&D, and Sustainability Committees, which, according to Protiviti, often are technology-related or consider technology in conjunction with particular issues): 

The largest increases in prevalence of board Technology Committees among the Fortune 100 have been Financial Services and Healthcare companies.  

The report does not advocate for one oversight structure over another, but rather recognizes that oversight structures should be company-specific. That said, it recognizes the pervasive nature of technology and corresponding need for boards to position themselves to be meaningfully engaged on this topic.

See also Protiviti’s “Ensuring Technology Fluency in the Boardroom” and additional resources here.

          This post first appeared in the weekly Society Alert!

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