You need to be ready for crisis in modern governance

Crisis in modern governance is the norm, the environment that we’re all going to have to get used to. While it might seem difficult at times, you need to be ready for it. 

It doesn’t matter what corner of the world you live in – crises have increased in frequency, scale and complexity. Some only challenge companies temporarily, but others can reshape business landscapes. The status quo isn’t really a guarantee anymore. 

Take the pandemic. In retrospect, it was a tone-setter for the chaos facing businesses this decade. 

Within weeks, global supply chains crumbled, travel halted, and entire industries went remote overnight. It forced businesses into crisis mode fast, and while many did suffer to the point of total collapse, there were also many success stories showcasing adaptation and quick thinking. 

These kinds of stories have persisted through the supply chain crises, geopolitical standoffs over Ukraine and Gaza, tariff threats, sanction threats and vocal consumers rallying against established brands over deep ideological divides. 

Each of these events left many companies scrambling, but those with robust governance frameworks and crisis readiness weathered the storm far better than their peers. The lesson is clear: the cost of unpreparedness is too high to ignore.

The bottom line is that we are in an age of crisis, and while it’s daunting to have to prepare, you can and you should. 

It’s tempting to ask that question, tempting to throw your hands up and say that, “if crises come out of nowhere, how could I possibly prepare for them?”

This is a trap. Many boards fall into it, and it’s costly. Yes, the next crisis won’t look exactly like the last and yes, they will often spring from nothing and change your entire strategy within a few short weeks. But in no way does that make you powerless. Ultimately, your stakeholders know this better than anyone. 

As a corporate leader, there are steps you can take to be ready, and you should ensure you follow them. 

Don’t worry, preparation doesn’t mean any kind of “crystal-ball” tactics, trying to pinpoint the time and date of the next corporate earthquake. True preparation in governance is about capacity. You need the tools, skills, and people in place to respond no matter what happens. 

On the ground, this means intense scenario planning and risk assessment. It also means ensuring your leadership has what it needs to cope. The outlook should be general enough that it almost doesn’t matter what crisis occurs because you have an arsenal that will help regardless.

The short answer is deliberate action on governance issues that you can control, crisis or not. Here are the steps you should take:

Corporate leaders, including those on the board and in executive roles, bring a diverse mix of skills and experience to the table. However, one crucial element often missing is dedicated training in governance. This training is not just beneficial, but essential, in equipping leaders with the skills needed to navigate crises. 

Governance knowledge means fundamental leadership proficiency. In times of crisis, leaders need this proficiency as a backbone to handling complex and fast-changing situations. 

A solid foundation in governance training—whether through courses, simulations, or scenario reviews—can dramatically improve a board’s response time and confidence.

Crisis punishes companies that remain rigid. On paper, you might think that your business will never fall into this trap. However, you’d be surprised at how much fear, groupthink and sheer stubbornness can prevail during times of crisis. 

To be a good leader, you need to embrace flexibility—structurally, culturally, and operationally. That means being able to pivot quickly, reallocate resources fast, and make decisions with imperfect information. The more adaptable your company, the more resilient it becomes.

You’ll often hear governance experts saying that you need diverse boards and executives. Separately, you’ll often hear them call for strong leadership, too. The real trick is integrating them both, so that your leaders have diverse views and skillsets, which are then harnessed by strong structure leadership that encourages suggestions and incorporates feedback.  

Clarity, unity, and calm from the top can keep the whole organisation steady.

When crisis hits, experience matters. Boards and executive teams benefit enormously from individuals who’ve lived through economic shocks, public scrutiny, operational failures, or major restructurings. If you’re missing these people, look for them. If it’s hard to find them, don’t give up. 

As we’ve said, we live in an age of crisis, so finding leadership with the right experience is a genuine long-term investment.

The one thing that leaders often forget about crises is that they can reveal your potential better than normal day-to-day operations. 

Companies well-equipped to pivot on strategy can often find unexpected upsides in moments of chaos. Take Zoom – suddenly forced to ask its staff to work remotely, but was still able to mobilise rapidly to become the go-to for online meetings. This wasn’t just for work; people met relatives and friends, hosted quizzes, birthdays, and graduations on Zoom. The capitalisation was massive. 

Well-prepared companies make these things happen. They spot gaps their competitors missed. They reposition their brand while others assume the goal is to just “stay alive”. 

This is what separates the survivors from the leaders. In the boardroom, survival is no longer the only goal; value creation under pressure is the new benchmark.

There will be another crisis. Even if the intense geopolitical standoffs of today’s world were solved tomorrow, you’re not in the clear. Pandemics, natural disasters… even a boat getting stuck in a canal can send your organisation into crisis mode.

Being ready is your key. It won’t solve the problem, but it’s the crucial competitive advantage. And it starts with trained, adaptable leaders who bring a range of views, steady hands, and the right experience to the boardroom.

You can’t control the next crisis. But you can control how ready you are for it.