Five Reasons Your Board Should Plan for a Crisis Now
1. Decreasing the number of decisions that must be made in the early stages of a crisis helps avoid costly mistakes.
2. Many events that have led to massive losses in shareholder value have begun as manageable problems that escalated to disastrous proportions.
3. When a crisis begins, some actions proposed by management may have liability implications for the board.
4. Expert advisors—often critical to a successful crisis response—are not easy to find. Building relationships in advance can save time and money.
5. The exercise of thinking through your company’s risk factors and planning for a crisis response can prevent the crisis from actually happening!