Building crisis-ready boards
The view at the top is exhilarating. So is the weather. When crisis looms, board members are exposed in ways that may be unfamiliar – and drawn into an active role that’s distinct from what management is going through.
Three out of four business leaders believe a crisis plan would benefit their organizations, yet barely half have a plan in place.1 Even when there is an organization-wide crisis plan, however, that doesn’t necessarily address the board’s needs. Yes, the board supports the main plan with oversight, moral authority, and strategic vision. But the board needs a plan all its own for those moments that place it in the eye of the storm.
Threats to a company’s value, reputation, or existence go beyond the operational level. Think about who outranks the board: shareholders. Regulators. Law enforcement authorities. If someone like that is involved, chances are the situation calls for a response at the highest level.
Then there are crises that directly involve the board or its members, such as litigation, leadership controversies, or even removing and replacing top executives. Making the board ready and resilient in the face of these threats starts with the composition of the board itself.
Inside Magazine - Global edition 2016
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
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