Pub. 9 2014-2015 Issue 4

www.nebankers.org 28 Extraordinary Service for Extraordinary Members. D IRECTOR RESPONSIBILITY FOR IT risk and strategy has become more consequential as cus- tomers migrate to electronic delivery channels. New laws, guidance, and regulations require a higher level of board focus on the IT area. At the same time, many directors still classify themselves as technology novices. Technology is a continuum. People tend to develop a high degree of famil- iarity and expertise with technologies that were pervasive in their formative years. If a bank board is comprised of directors of varying ages, each member will generally bring a set of skills and a frame of mind that is characteristic of his or her generation. A 75-year-old director, for example, may have no idea how to use an iPhone. However, the same director would eas- ily be able to drive a stick shift car. Ask this director how Wi-Fi works and you will get a blank stare. But if you ask how a Hi-Fi worked, you will get a detailed explanation of proper warmup proce- dures, changing defective tubes, etc. Most bank directors I have worked with have the natural ability to under- stand technology but many feel over- whelmed by the rapid pace of change and the increasing level of personal responsibility they must assume for an area with which they don’t feel fully comfortable. The Tech-Savvy Board: Helping Directors Understand Technology Jack Vonder Heide , CEO, Technology Briefing Centers Inc. Boards can take several steps to improve the technical competence of directors and help them make better informed decisions. First, recruit an outside director who has a deep understanding of technology. An ideal candidate would be a C-level executive who is currently working and who oversees the IT area of a well- respected large or middle-market com- pany. A publicly traded organization is best because the executive will have some familiarity with regulatory issues. Second, form a board-level technol- ogy committee. This group would be chaired by the tech-savvy director and would include two or three other direc-