Stakeholder disappointment and anger over a succession of failures by companies to anticipate, mitigate and respond to the impacts of reputational crises â including COVID-19, social justice issues, privacy breaches, sexual harassment and abuse in the workplace â have propelled a tsunami of reputational challenges into corporate boardrooms. How boards oversee these challenges could affect the present trajectory of derivative litigation as well as transform enterprise risk management and its governance for generations to come.
Enterprise risk management needs an overhaul urgently. Board members are right to be concerned; they personally have a lot at stake.