Institutional EYE

Commentary on Corporate Governance Issues

Preparing for another crisis

The pandemic provides boards and managements with the best experience to prepare for a crisis - even though the current one shows no signs of abating

These past seven months are proof regarding how resilient (some) companies are. This, however, does not in any way mean that companies can shrug away the challenges that the next catastrophe may throw – even as the current one shows no signs of abating. The last two decades have been peppered with events like 9/11, the financial crisis, the taper tantrum and now Covid-19, with many regional and consequently less calamitous occurrences. These are all reminders that companies need to be prepared not for ‘if’ but ‘when’ the next major crisis hits. To do so, companies must change the conversation on the board.


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