The Role Of The Board In Responding To A Crisis
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Sooner or later, every enterprise will face a crisis. When it hits, the ability to side-step disaster depends on the effectiveness of your company's response.
Canada
Coronavirus (COVID-19)
EXPECTATIONS FOR MANAGEMENT AND BOARD
MANAGEMENT'S
ROLE NEEDS OF THE BOARD BOARD'S ROLE
Implement and adapt its preestablished crisis response
plan
Identify risks and assess responsibility for
developingmitigation strategies
Internal communications strategy – consistent and
trust-evoking messaging from top to bottom
External communications strategy – message development,
stakeholder identification
Tend to public reputation
Determine corrective actions
Execute the response plan
Frequent, timely and frank reporting
Quantification of impact/exposure
One point of contact between board and management
A clear statement of the questions
the Board needs to decide or
issues it needs to address
Clear understanding of stakeholder engagement strategy, and the
role it, or any member, should be playing
Clear explanation of how short‑term responses address
long-term needs
Understand the situation, implications for the organization and
management's focus
Provide advice and counsel to management as sought
Be available and willing and able
to provide requested support to management
Understand and respect board and management roles
Make decisions with a view to longterm sustainability of the
organization
Facilitate post-crisis review assessment and provide feedback
to management
KEY ELEMENTS TO A CRISIS RESPONSE
Identified team, with allocated responsibilities and
accountabilities
Approved internal communication framework
Assigned responsibility for external communications and
stakeholder engagement
Contingency plans in case management is unable to assist
Systems to monitor developments and adjust the plan as
needed
Engagement with regulators
Anticipation and management of additional fallout
Unobstructed up-the-ladder reporting
PREPARE FOR THE NEXT CRISIS
POST-CRISIS
ASSESSMENT DEVELOP AND PROMULGATE INTERNAL AND
EXTERNAL MESSAGING REASSESS AND IMPROVE CRISIS
PLAN
What did we do right?
What could we have done better?
Solicit views:
internal stakeholders (directors, officers, managers,
employees)
external stakeholders (customers, suppliers, regulators,
etc.)
How has the crisis affected the organization?
Where is the organization now?
Where are we going?
Reassess enterprise risk management system's ability to
identify and mitigate new or evolving risks
Reassess plan's ability to respond to the next crisis
Buttress defenses against the next crisis
Download PDF: The role of the board in responding
to a crisis
Originally published May 2020
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
