More Ideas for Great Expansion Stage Boards

February 18, 2010

A few weeks ago, I wrote several blog posts related to the search process and criteria for Board members. Continuing on the board of directors theme, I’d like to refer you to an article I ran across in yesterday, written by Kate O’Sullivan, “How Risky Is Your Board?”

O’Sullivan recommends taking a look at not only the qualifications of board members, but their relationships to each other, as part of a regular corporate governance risk assessment (which is a best practices process that CFOs can certainly help to facilitate). While quickly remedying any potential risks at the board level may not be immediately actionable by an early-stage or expansion stage company, a good CFO would be wise to “shine a light” on any potential problems well in advance of seeking that last expected round of venture capital funding or preparing for an expected IPO.