What is the roles of Board of Directors in Good Corporate Governance? An active and engaged board is an essential part of shaping and executing a successful strategy. Boards contribute to organizational performance when they fulfill five major responsibilities.

1. Directors approve the strategic direction of an enterprise. While the board does not create strategy their approval sets the organization in motion. Therefore, directors need to know enough about the business (the central business issues and non-financial factors that drive the business) so they can identify a winning strategy from a risky or problematic one.

2. Another concern of the board involves ensuring that resources are used most effectively and efficiently to achieve the strategy. As such, the board oversees the financial actions of an organization. They set fiscal policy and approve large capital expenditures. Many of these expenditures are highly strategic. However, the strategic relevance of these requests is not always clear because large funding requests do not demonstrate a tight linkage to strategy.

Corporate governance is a matter of enormous public attention and concern. More was published on this topic in the past 12 months than in the last five years combined. Much of the press provides governance practices and control recommendations that introduce more regulation into the governance process. While tough measures such as Sarbanes-Oxley Act and the SEC orders and regulations reforms are necessary, given recent events, they are not sufficient.

Corporate leaders need a modern set of tools that provide greater visibility into their organizations and strengthen corporate governance and corporate performance management. There are three-part Balanced Scorecard-based system, i.e., the Board Balanced Scorecard, Corporate Balanced Scorecard and Executive Balanced Scorecard integrated into cohesive information technology foundation. The users of these scorecards are the board of directors, executive management, general managers, and executive staff respectively.

1. Information security policy, objectives, and activities that reflect business objectives;
2. An approach and framework to implementing, maintaining, monitoring, and improving information security that is consistent with the organizational culture;
3. Visible support and commitment from all levels of management;
4. A good understanding of the information security requirements, risk assessment, and risk management;
5. Effective marketing of information security to all managers, employees, and other parties to achieve awareness;
6. Distribution of guidance on information security policy and standards to all managers, employees and other parties;
7. Provision to fund information security management activities;

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