Crisis Management Governance

The global environment and marketplace have become increasingly complex, volatile and unstable, making crisis management  an important element of organizational resilience. Events that may require effective crisis management could involve natural disasters, cyberattacks, financial scandals, regulatory interventions, and others.

The board of directors is instrumental in providing strategic guidance and leadership which is essential in ensuring the organization’s preparedness, survival, and recovery as the organization is called to navigate effectively through crises. Effective crisis management requires a proactive approach, encompassing preparation to effectively manage and respond to these events. It also requires setting up a crisis governance structure with appropriate response plans, defined roles and responsibilities, timely assessment of impacts, development of stakeholder communication strategies, regular training and simulations, clear and transparent communication, and aiming to achieve effective collaboration and coordination.

Preparing plans to address potential crises involves risk assessments to identify gaps, establish response teams, develop response protocols, and perform training programs and simulations. Swift and decisive action is essential. Responding to a crisis also requires clear communication to stakeholders of mitigation plans to maintain trust and credibility. In the aftermath of a crisis, restoring normality requires an evaluation of impacts, a deep understanding of what went wrong and of any lessons learned. Crisis management and board-level preparedness are essential components of organizational resilience. By adopting proactive strategies, fostering a culture of preparedness, and providing strategic oversight, boards can help organizations navigate through crises and emerge stronger.