Every board has to be ready to deal with an existential crisis, but many boards have revealed themselves to be unprepared when faced with the challenge. This session will review best practices for identifying crisis-level risk exposures and for implementing effective, practical responses. The panel will focus in particular on patterns common to board-level crisis situations, communications and the delegation of responsibility, the potential value of tabletop exercises as a means of preparation, and the need to balance legal concerns with the required responses to public, consumer, and regulatory demands for information.

The board’s risk oversight responsibility has become more complex and subject to enhanced scrutiny from the courts in recent years. Institutional investors have identified risk oversight as a critical governance issue while pushing for more meaningful disclosures on the board’s risk oversight activities. Although the day-to-day risk management belongs with management, the board must engage proactively in monitoring key corporate risk factors and working with executives on a strategy to mitigate risks. How can directors work most effectively with management to understand the company’s risk appetite, the nature of material risks, their

This session is designed to provide “ordinary” and/or newly appointed board members with concrete suggestions to monitor potential issues related to financial reporting. The classroom-style presentation seeks to improve directors’ understanding of accounting principles in a way that cuts to the chase and de-emphasizes “traditional practices” in favor of more practical strategies. Time permitting, the session will conclude with a brief case study illustrating the complications associated with arguably incomplete accounting disclosures.