How should boards of directors react to unanticipated risks?
Exclusive interview with Shellye L. Archambeau, board member of Verizon and Nordstrom When the utterly unexpected happens, a board of directors should immediately assess the potential impacts to the company on all fronts. Operations, supply chain, employees, and others. More importantly, board members must press management to assure that it has an adequate understanding of the potential effect of the crisis, said Shellye L. Archambeau, member of the board of directors at Fortune-500 Verizon Communications and Nordstrom. In rough weather, directors might be tempted to forget strategy and become tactical thinkers or involved in day-to-day duties. Archambeau recommends not jumping in. Naturally, directors should be aware of what is happening in the “here and now” and of the tactics deployed. […]