This year has started with a number of critical events and crises - notably the Australian bushfires and the emergence of the novel coronavirus, COVID-19. (See just published Coronavirus: Information for businesses).
With devastating effects to people, organisations and communities, these unforeseen events create uncertainty and disruption in an already challenging operating environment for boards. They also provide a timely reminder to the governance community that it is critical for boards to ensure their organisations are prepared for the unexpected.
When faced with critical events and crises, board leadership is vital – both in preparing for the unexpected and supporting management in responding to and recovering from a crisis. The board is responsible for ensuring management has developed and implemented appropriate crisis management plans and monitoring these plans over time.
However, the results of the 2019 Director Sentiment Survey showed that just 65% of boards had discussed crisis management plans in their organisation in the last 12 months, suggesting that crisis management needs more attention in our boardrooms.
The Four Pillars of Governance Best Practice provides guidance on:
Other useful resources: