Being Prepared for the Next Crisis: The Board’s Role

Summary

Boards are operating in an age of continuous disruption — from geopolitics and supply‑chain shocks to cyberattacks and sudden leadership departures. The article argues that crisis readiness must be integrated across crisis management, business continuity, disaster recovery and incident response so organisations can maintain critical operations and protect long‑term value.

Content summary

The piece outlines what boards should expect and demand from management before, during and after a crisis. Before a crisis, boards should ensure crisis plans are living documents: crisis‑agnostic, tested, aligned with continuity and recovery plans, and clear on roles (including a designated crisis leader). During a crisis, boards should oversee communications strategy, stakeholder engagement (especially employees), timely escalation and the use of external advisors. After a crisis, boards must push for root‑cause analysis, independent reviews when needed, and follow‑through on lessons learned to strengthen resilience.

Context and relevance

With crises becoming recurring rather than exceptional events, strong board oversight of preparedness is now a competitive advantage. The article is relevant to directors and senior executives who must balance immediate crisis response with preserving business operations and reputation over the medium to long term.

Source

Source: https://corpgov.law.harvard.edu/2025/09/08/being-prepared-for-the-next-crisis-the-boards-role-2/

Key Points

Crisis preparedness must be integrated across crisis management, business continuity, disaster recovery and incident response.
Boards should require that crisis plans are living, crisis‑agnostic documents that are regularly updated and tested.
A clearly designated crisis leader and an accountable governance structure are essential for timely decision‑making.
Board escalation triggers (quantitative and qualitative) must be defined so the board is informed at the right time.
Testing and tabletop exercises should cover a wide range of scenarios beyond cyber, including supply‑chain, natural disasters and geopolitical risks.
The board should maintain its own crisis plan detailing governance, communications and temporary succession options.
Common pitfalls include too many decision‑makers, siloed priorities, familiarity bias and failing to act on lessons learned.
During a crisis, communications (internal and external) must be frequent, authentic and aligned with company values; the board should challenge strategy and spokesperson choices.
Boards should ensure stakeholders — especially employees — are kept informed; internal communications are as critical as external messaging.
After a crisis, conduct root‑cause analysis, consider independent investigations when appropriate, and embed continuous improvement into the crisis response plan.

Why should I read this?

Short version: if you sit on a board or advise one, this is your practical checklist for not getting blindsided. The article boils down what directors need to ask management now — from who’s the crisis lead to whether plans are actually tested — and why those things matter for reputation, continuity and shareholder value. Read it to avoid the repeat mistakes most companies make when chaos hits.