What Every Organization Needs in a Conflict of Interest Statement for Board Members
A clear, well-communicated conflict of interest statement for board members is essential to maintaining board integrity and protecting the organization. When directors hold outside interests—whether financial, advisory, or otherwise—disclosure isn’t optional. It’s a baseline expectation that allows boards to make informed decisions and avoid reputational or regulatory fallout.
A conflict of interest statement for board members can take many forms. It could occur, for example, when hiring someone out of personal interests, like a relative or family member. It could occur by accepting an offer from a competitor. It could happen when someone makes a decision that stands to bring them known financial gain.
Too often, conflict of interest management is reactive. But the risks—regulatory penalties, media scrutiny, investor concerns, and so on—are too high to leave this unaddressed.
The solution? It starts with education. Every board member should be trained on how to recognize a conflict, what to disclose, and how the process works internally. This needs to happen during onboarding and at regular intervals.
Why Technology Can Help Board Members Manage Conflict of Interest
Technology can play an important role to mitigate conflict of interest risks for board members. It reduces errors, speeds up the process, and ensures disclosures don’t get lost in email chains or outdated spreadsheets. With automated workflows, high-risk disclosures can be routed quickly to the right people. In the meantime, audit trails can provide documentation if questions arise.
Actions to Take
- Define and adopt a conflict of interest statement for board members
- Have each board member share external roles, financial interests, etc…
- Provide COI education at onboarding and throughout the year
- Use technology that automates disclosures, routing, and documentation
- Build escalation and review protocols into your COI process
- Review outside affiliations regularly—not just annually
- Maintain detailed records of all disclosures and actions taken
Final Thoughts
A conflict of interest policy reflects more than compliance—it reflects leadership. The way a board identifies, responds to, and documents conflicts signals how seriously it takes its responsibility to the organization, its stakeholders, and its values. Having a clear process in place builds accountability and trust into governance.
SAI360 supports that mission. How? By streamlining the conflict of interest process for the entire enterprise. From automated disclosure workflows to centralized dashboards that surface risk patterns, SAI360’s integrated GRC Platform leverages technology to support fast, informed decision-making. These tools help organizations move from reactive processes to intentional, ethics-driven leadership.
That shift is part of a larger story—one rooted in ethics, shaped by risk, and carried forward by leadership that sees transparency not as an obligation, but as the foundation for long-term integrity.
