Canada:
The Role Of The Board In Responding To A Crisis
03 July 2020
Osler, Hoskin & Harcourt LLP
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EXPECTATIONS FOR MANAGEMENT AND BOARD
MANAGEMENT'S
ROLE |
NEEDS OF THE BOARD |
BOARD'S ROLE
|
- Implement and adapt its preestablished crisis response
plan
- Identify risks and assess responsibility for
developingmitigation strategies
- Internal communications strategy – consistent and
trust-evoking messaging from top to bottom
- External communications strategy – message development,
stakeholder identification
- Tend to public reputation
- Determine corrective actions
- Execute the response plan
|
- Frequent, timely and frank reporting
- Quantification of impact/exposure
- One point of contact between board and management
- A clear statement of the questions
- the Board needs to decide or
- issues it needs to address
- Clear understanding of stakeholder engagement strategy, and the
role it, or any member, should be playing
- Clear explanation of how short‑term responses address
long-term needs
|
- Understand the situation, implications for the organization and
management's focus
- Provide advice and counsel to management as sought
- Be available and willing and able
- to provide requested support to management
- Understand and respect board and management roles
- Make decisions with a view to longterm sustainability of the
organization
- Facilitate post-crisis review assessment and provide feedback
to management
|
KEY ELEMENTS TO A CRISIS RESPONSE
- Identified team, with allocated responsibilities and
accountabilities
- Approved internal communication framework
- Assigned responsibility for external communications and
stakeholder engagement
- Contingency plans in case management is unable to assist
- Systems to monitor developments and adjust the plan as
needed
- Engagement with regulators
- Anticipation and management of additional fallout
- Unobstructed up-the-ladder reporting
PREPARE FOR THE NEXT CRISIS
POST-CRISIS
ASSESSMENT |
DEVELOP AND PROMULGATE INTERNAL AND
EXTERNAL MESSAGING |
REASSESS AND IMPROVE CRISIS
PLAN |
- What did we do right?
- What could we have done better?
- Solicit views:
-
- internal stakeholders (directors, officers, managers,
employees)
- external stakeholders (customers, suppliers, regulators,
etc.)
|
- How has the crisis affected the organization?
- Where is the organization now?
- Where are we going?
|
- Reassess enterprise risk management system's ability to
identify and mitigate new or evolving risks
- Reassess plan's ability to respond to the next crisis
- Buttress defenses against the next crisis
|
Download PDF: The role of the board in responding
to a crisis
Originally published May 2020
The content of this article is intended to provide a general
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