‘Vulnerability gap’ threatens preparedness for crisis management according to survey

Published: Friday, 19 February 2016 10:37

Less than half of board members say their organizations have both the capabilities and processes in place to effectively handle a crisis, according to a Deloitte survey. The survey of 317 non-executive global board members found that they have confidence in their organizations’ ability to deal with crisis situations, but are less confident that they are prepared for them.

“Most businesses will face a crisis at some point”, states Rick Cudworth, risk advisory partner at Deloitte. “In my experience, most boards now recognise that it’s a matter of when, not if. This has been a big change in recent years. Board members should hold frequent discussions with management to ensure a sound and common understanding of what preparations have been made to deal with a crisis when it arises. This should include regular rehearsals of executive and board members.”

Additional survey findings include:

“It’s clear that crisis awareness, preparation and resilience needs to be a more prominent topic in the boardroom”, continues Cudworth. “While the approach may differ between organizations, our research found that fewer than a third of crisis-hit respondents recovered in less than a year. No board should underestimate the challenge that crisis brings, and its potential longevity.”

The survey was conducted by Forbes Insights on behalf of Deloitte Touche Tohmatsu Limited.

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