Question

What is a board of advisors? What role does a board of advisors play in the management of a firm? Give an example

Answer 1

The way of doing business has changed a lot from what it was few years back and today in order to sustain and succeed in the industry, organizations need to understand that they need to excel in each and every form of business and hence board of advisors come into picture which plays an integral role and part. Board of advisors are a group which consists of various business professionals who are informally times in order to provide business advice to the organization in order to help them grow, develop and manage crisis accordingly for the betterment of the same. The board of advisors generally consists of professionals from various fields like a legal expert, financial expert, human resource professional, marketing professional, accountant, etc.

The board of advisors generally guide the business although they are not having the responsibilities of the board of directors who are responsible for various activities along with the same. The advisors need to control and manage the aspects of the business and advise the stakeholders accordingly or else the organization may actually make mistakes which may have a negative impact on the business. As the margin for error for organizations are very less today based on the level of competition, hence they cannot afford to make such mistakes and hence need to maintain or manage the same.