The Evolving Role of the GC in Risk and Crisis – Complimentary Article
The National Association of Corporate Directors has published an article that outlines five key steps to help companies prevent negative headline events and respond when a crisis can’t be avoided. The article can be downloaded from the NACD website.
With social media as an accelerant, a smoldering corporate crisis or failure can almost instantly flare into the firestorm of a viral headline event. In this recent interview in NACD Directorship magazine, Robert E. Bostrom outlines the five key steps companies can follow. He strongly recommends that companies take the following measures:
- Establish an enterprise-wide risk committee.
- Proactively evaluate and prioritize a broad portfolio of risks.
- Empower the GC as the representative on risk to the board.
- Use risk management as a business tool for evaluating strategies, plans, and investments.
- Strategize and plan for managing negative events.
Bostrom provides some strong insights into the role of the GC in both preventing and managing crises. He also offers his thoughts on how boards and management must align in order to prevent (or survive) headline events.
