Steady Hands, Safe Plans: Why Good Governance Makes or Breaks a Crisis

On 10 March 2023, Silicon Valley Bank collapsed with startling speed, marking the second-largest bank failure in U.S. history. A Federal Reserve review attributed this to a “textbook case of mismanagement,” highlighting the board’s failure to oversee senior leadership and manage basic interest rate and liquidity risks. Similarly, Boeing’s 737 MAX crisis, resulting in two fatal crashes, exposed significant lapses in corporate governance, where the board neglected oversight duties, failing to hold the company accountable for safety.

These incidents underscore how traditional governance models are being stress-tested like never before. In today’s volatile world—marked by cyberattacks, climate events, public backlash and financial shocks—governance isn’t a side issue; it’s central to crisis management. This article explores innovative governance practices shaping resilient responses, with real-world examples that go beyond conventional boardroom protocols.

 When Crisis Hits

When crisis strikes, the speed and complexity of modern threats demand more than traditional governance checklists. The 2021 ransomware attack on Colonial Pipeline, which disrupted fuel supplies across the U.S. East Coast, underscored this reality. The breach exploited a compromised password lacking multi-factor authentication, leading to a six-day shutdown and a $4.4 million ransom payment. This incident highlighted the necessity for boards to prioritise cybersecurity as a strategic imperative, not merely an IT concern.

In response to such evolving threats, forward-thinking boards are appointing “crisis sherpas”—external advisors with expertise in emergency response—to guide them through complex situations. These specialists assist in developing realistic simulations and response plans, ensuring that governance structures are agile and responsive.

Ultimately, effective crisis governance transcends oversight; it encompasses proactive strategy, rapid communication and cross-functional coordination. Boards must evolve to meet these challenges head-on, embedding resilience into the very fabric of their organisations.

EXPLORE ALL TRAINING OPPORTUNITIES BY EIMF

Diversity in Adversity

In times of crisis, a strategy of diversity within corporate boards proves invaluable. A range of perspectives—spanning gender, ethnicity, age and expertise—enhances a board’s ability to navigate complex challenges effectively. Unilever exemplifies this approach. During the COVID-19 pandemic, its diverse leadership enabled swift, empathetic responses to global employee and consumer needs. Initiatives included €100 million in product donations and support for vulnerable suppliers, reflecting a governance model attuned to varied stakeholder concerns.

Innovative practices are emerging to further enrich board diversity. Some companies are establishing “next-generation” or shadow boards, comprising younger, digitally native employees who provide fresh insights, particularly relevant during crises involving technology or social issues. For instance, firms like Michael Page and Interbrand have successfully implemented such boards, fostering inclusive decision-making and bridging generational gaps.  Embracing diverse voices equips organisations to identify blind spots and respond to crises with agility and insight. Incorporating varied experiences and viewpoints isn’t just a nod to inclusivity—it’s a strategic imperative for resilient governance.

 Scenario Planning and Pre-Mortems

Effective boards are also shifting from reactive governance to proactive scenario planning. One powerful tool gaining traction is the “pre-mortem”—a strategic exercise where leaders assume a crisis has already occurred and work backwards to identify potential causes. This approach encourages candid discussions about vulnerabilities and fosters a culture of preparedness. For instance, Netflix employs scenario planning to anticipate challenges such as data breaches, creative controversies and subscriber attrition. By simulating these scenarios, the company can develop agile responses and mitigate risks before they materialise. This proactive stance enables Netflix to maintain resilience in a volatile market.

Complementing these human-centric strategies, organisations are increasingly leveraging AI for risk assessment. AI-driven models can analyse vast datasets to identify emerging threats, predict outcomes, and recommend mitigation strategies. This integration of AI enhances the board’s ability to foresee and address complex risks effectively.

Ultimately, combining pre-mortem exercises with AI-driven insights equips boards to navigate uncertainties with confidence. By anticipating potential failures and preparing accordingly, organisations can transform unforeseen challenges into manageable scenarios, reinforcing the critical role of proactive governance in crisis management.

EXPLORE ALL TRAINING OPPORTUNITIES BY EIMF

Transparency and the Speed of Trust

In the crucible of crisis, transparency isn’t optional—it’s the cornerstone of trust. The swiftness and sincerity of a company’s response can significantly influence public perception and stakeholder confidence. Consider Patagonia’s 2023 recall of its Infant Capilene Midweight Base Layer Sets due to a potential choking hazard. The company promptly issued a full refund, provided prepaid return labels, and communicated the issue transparently through multiple channels. This decisive action not only mitigated potential backlash but also reinforced Patagonia’s reputation for integrity and responsibility.

Modern governance practices are evolving to support such transparency. The implementation of “crisis transparency dashboards” is an emerging trend, enabling real-time alignment between board members, public relations teams, and operational units during unfolding crises. These dashboards serve as centralised hubs for disseminating accurate information, facilitating swift decision-making, and maintaining consistent messaging across all platforms. 

In many situations, silence or obfuscation can erode trust more rapidly than the crisis itself. Effective governance demands visible, values-driven leadership that communicates openly and promptly. In an age where information travels at the speed of light, trust hinges on the speed of transparency.

 Learning Out Loud

In the aftermath of a crisis, the most forward-thinking boards don’t just recover—they evolve. Conducting governance-level post-crisis audits has become a best practice, transforming setbacks into strategic learning opportunities. A notable example is the 2022 Optus data breach in Australia, which compromised the personal information of up to 10 million customers. In response, Optus commissioned an independent review by Deloitte to scrutinise its governance and cybersecurity frameworks. The review highlighted deficiencies in the company’s cyber incident response plan and underscored the need for enhanced board-level oversight of cybersecurity risks. This introspection prompted Optus to commit to strengthening its governance structures and improving transparency with stakeholders.

Emerging from such experiences is the concept of a “living board manual”—a dynamic, digital repository that evolves with each crisis. Unlike static documents, this manual is continuously updated with lessons learned, revised protocols and best practices, ensuring that institutional knowledge is preserved and readily accessible. Ultimately, a crisis is a terrible thing to waste. By codifying experiences and fostering a culture of continuous improvement, boards can enhance their resilience and better navigate future challenges.

EXPLORE ALL TRAINING OPPORTUNITIES BY EIMF

Steady Hands, Safe Plans

Corporate governance is no longer a box-ticking exercise—it’s the backbone of brand resilience. From cyberattacks to public scandals, the ability to respond swiftly, transparently, and with integrity is a defining factor in whether an organisation stumbles or strides through crisis. The most respected companies don’t pretend crises won’t happen. They prepare, they practise, and when the pressure’s on, they perform. Good governance isn’t about perfection—it’s about leadership that is informed, inclusive, and ready to act; not static but always strategic.

Related Training Programmes

• 08/10/2025 - EIMF Certificate in Governance, Financial Regulation and Compliance
• 23/10/2025 - Elements of AI Governance in Banking & Finance
• 31/10/2025 - Directors’ Roles and Responsibilities
• 04/11/2025 - HRDA Vital Importance: Optimizing AI Governance for Responsible and Scalable Automation
• 06/11/2025 - Corporate Governance for Financial Institutions