Technology Oversight Structures: Is a Technology Committee Right for Your Board?

How to use this tool: This tool provides information about fiduciary board committees and technology advisory boards. Boards considering establishing a technology committee or technology advisory board can use this tool to understand the key features, important differences, benefits, and issues to consider about each structure.

The Growth of Board Technology Committees

The 2024 report of the NACD Blue Ribbon Commission, Technology Leadership in the Boardroom: Driving Trust and Value, noted that technology committees can provide space for discussing important technology items in greater depth not afforded in a standard full-board meeting. There are several approaches boards can consider for bridging the gap, including fiduciary board technology  committees and technology advisory boards.

Boards should ask themselves a range of questions when determining if an advisory committee or a board technology committee is right for their company and if the board and management teams are prepared to establish and sustain it. But as one Commissioner stated, “Whatever you choose, it should be what drives the board to that strategy discussion. Oftentimes, technology is the Trojan horse to strategy discussion, and committees can help with that.” 

However, even if a board creates a technology committee, technology oversight in some capacity must remain a full-board agenda item to ensure the board fulfills its fiduciary role with respect to oversight of strategy, risk, compliance, and long-term value creation.