The role of a board member in a crisis

The role of a board member in a crisis: a guide to help you understand what to focus on when your company’s fortunes suddenly turn. “Losing your head in a crisis is a good way to become the crisis" - CJ Redwine In the volatile, unpredictable business world, crises are an inevitable reality. The success of an organisation in navigating these challenging periods hinges largely on the strength and proficiency of its leadership, particularly the board of directors. This guide will pinpoint how you can make a positive difference when things get tough. Embrace your inner “strategic navigator” When a crisis descends, conventional business methodologies may lose their effectiveness. In this disarray, a director must transition smoothly into “strategic navigator”. The role of a board member in a crisis is not just to ensure survival during the crisis but also to set the organisation up for success in the post-crisis world. To do so, board directors must actively work with the executive team to identify risks and meticulously develop contingency plans to safeguard against them. Also, it’s not all negative Hard as it may be to believe, crises can also bring forth uncharted territories ripe for exploration. A strategic navigator should have the foresight to identify them. They could be areas entirely different from the organisation's current focus, but that doesn’t matter. If they could potentially provide a fresh avenue for growth and diversification, they’re worth pursuing. Adapt, adapt, adapt The board director should be an agility and flexibility champion. During a crisis, the ability to adapt quickly becomes a vital survival tool. The strategic navigator must foster an organisational culture open to change and resilient in its response. Strategic navigation during a crisis will often involve making difficult decisions, but good directors must have the courage and wisdom to make them, whether they’re popular or not. Manifest unwavering leadership Crises often serve as a litmus test for leadership. In such tumultuous times, a director is called upon to showcase the unwavering leadership skills that they (probably) boasted about during recruitment. Composure and determination are everything. Done right, they send a powerful message to colleagues and significantly impact their overall response. How to manifest this leadership It requires a delicate balance of resilience and decisiveness. The ability to stand strong and keep moving forward, regardless of the setbacks encountered, will be a beacon of inspiration for the management team and the broader workforce. Concurrently, the capacity to make clear, firm decisions and communicate them properly, even under a cloud of stress and uncertainty, can provide much-needed direction and stability. And don’t forget this strong leadership will often filter out to other stakeholders, including customers, investors, and partners. Cultivate a culture of transparent communication Clear, honest, and consistent communication is crucial in a crisis. The swirling vortex of uncertainty can often cultivate misinformation, potentially inflaming an already precarious situation. Here, the director needs to foster a culture of transparent communication. This demands a dynamic communication strategy tailored to reach all stakeholders effectively — whether they're employees, investors, customers, or the wider community. This communication blueprint should be meticulously designed to deliver timely, accurate, and comprehensive updates, minimising any information void that could give rise to speculation or panic. And remember: good strategies acknowledge challenges as well as share progress. It’s no use ignoring the bad things or blindly promising that everything will be all right. Strategies must clearly state how bad things are, while analysing how the problems will be fixed. Any success along the way should be acknowledged to the max. Prioritise employee safety and well-being In the stormy seas of crises, it's the people within the organisation who often bear the brunt and face personal and professional upheaval. Directors must give paramount importance to the safety and well-being of these individuals should be at the heart of crisis management. Employee-centric measures include flexible work arrangements, amplifying safety protocols, or extending mental health support. Measures like these clearly convey that the company values its employees as human beings, not just as workforce contributors. It’s a trust exercise that increases loyalty and lets employees know that even though the crisis is ongoing, they are not forgotten. Again, this attitude will often extend beyond the confines of the company and show a level of compassion to external stakeholders. The role of a board member in a crisis: seek training Navigating the complex landscape of board governance requires an in-depth understanding, practical experience, and a solid support network. Our Diploma in Corporate Governance, delivered by experienced directors and governance professionals, offers you all these essential components. With a comprehensive curriculum covering key topics such as risk management, financial literacy, and boardroom dynamics, our diploma will equip you with the skills necessary to be an impactful director.

Rapidly acquire the skills and knowledge you need to lead.

Diploma in Corporate Governance

Certified Corporate Governance Professional

Certified Company Secretary Professional

Certified ESG Professional

ESG Strategy and Governance

Company Secretary

Overview of Corporate Governance

AI Governance

CSRD Reporting

Go Further With Membership

Join the largest global educator of university credit-rated and qualified directors in corporate governance.

University partnership

Attend online and in-person events to get the practical skills and insights you need to make an impact as a leader.

Webinars

Masterclasses

Information sessions

Webinars

Insightful and thought-provoking content to help you become a great board director.

eBooks

Case studies

Guides

Interviews

Lexicon

News analysis

Member spotlight

Thought leadership

Podcasts

Stay Relevant With Membership

The role of a board member in a crisis

About this author

Insights on leadership

Related Posts

Rapidly acquire the skills and knowledge you need to lead.

Diploma in Corporate Governance

Certified Corporate Governance Professional

Certified Company Secretary Professional

Certified ESG Professional

ESG Strategy and Governance

Company Secretary

Overview of Corporate Governance

AI Governance

CSRD Reporting

Go Further With Membership

Join the largest global educator of university credit-rated and qualified directors in corporate governance.

University partnership

Attend online and in-person events to get the practical skills and insights you need to make an impact as a leader.

Webinars

Masterclasses

Information sessions

Webinars

Insightful and thought-provoking content to help you become a great board director.

eBooks

Case studies

Guides

Interviews

Lexicon

News analysis

Member spotlight

Thought leadership

Podcasts

Stay Relevant With Membership

The role of a board member in a crisis

About this author

Insights on leadership

Currently trending

Related Posts

How to cope with tariffs: the corporate governance perspective

Time is a governance risk factor

Artificial Control and the rise of agentic AI