Technology: Are there clouds on your board’s radar?

A look at directors’ fiduciary duties in the cloud

Directors are responsible for ensuring the long-term viability and health of companies they serve and have an important role in overseeing enterprise risk management. Directors have a duty to exercise care and to make reasonable inquiry about important matters that impact the business-such as the outsourcing of business processes to the cloud.

Although the use of cloud services continues to grow, with Gartner reporting that 38 percent of organizations surveyed are using cloud services today and 80 percent of organizations indicating that they intend to use some form of cloud services in the next 12 months, many boards are not sufficiently engaged in understanding and supervising the company’s strategy for cloud technologies.

Contributing Author

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Janet A. Stiven

Janet A. Stiven is the vice president & general counsel of The Moody Bible Institute of Chicago.

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