Protecting an organization’s reputation is one of the most important responsibilities of directors today. But what, exactly, is the director’s role in crisis management?
While boards do not typically respond to a crisis operationally or publicly, the directors’ role as fiduciary and strategic stewards of the organization means they must be prepared for reputation risks. Preparedness ensures that the board will be capable of moving quickly to solve problems in keeping with company values and governance policies.
Here are some questions board members should ask BEFORE a crisis:
When a crisis hits, remember these points:
Before communicating with shareholders or others, be sure that you understand your organization’s governance principles around public statements. More than anything, remember to listen. Investors, in particular, want to be heard.
Learn more about warning signs of a smoldering crisis.
Learn more about how to respond to a government investigation.