n a conversation last week with a Board Member whose non-profit organization oversees $100 million, the Board Member admitted that he had difficulty in getting people to serve. It was not only a question of other commitments, he confessed; rather it was because people were afraid of the liability that goes with being a Board Member.
Being in conformance with the Global Fiduciary Standard of Excellence may not insulate a fiduciary from his/her liability, but being certified will go a long way toward mitigating the damage. Most major E&O insurance companies recognize the value of being certified and will discount the cost of their premiums up to 25%.
It is more important than ever that Fiduciaries use a prudent governance process based on an independent set of best practices. Being certified to the Global Fiduciary Standard of Excellence, with its 22 best practices, is a good start.