The critical role of the audit committee
The audit committee’s role in disaster recovery, crisis management and resilience
Our latest paper looks at the Audit Committee’s role in Disaster Recovery, Crisis Management and Resilience. It considers some of the potential limitations of current risk management, the nature and frequency of corporate crises and the critical role an Audit Committee can provide in the effective governance before, during and after such events.
We are seeing a dramatic increase in the reputational and financial impact triggered by crisis events. Research undertaken by Deloitte’s Risk Advisory business indicated that 86 of the top crisis incidents between 2012-13 resulted in a cumulative market value loss of $351bn.
The dynamic, global business environment is inevitably leading to larger and more frequent crisis events, with risk management processes often failing to identify or adequately consider an organisation’s readiness to deal with such events.
Our paper looks at the role the Audit Committee should play to ensure that the organisation has a robust crisis strategy and reviews the questions it should ask before, during and after a crisis. It sets out what’s at stake and identifies the key considerations to improve ‘risk resilience’ and ‘crisis readiness’.