In a world that is increasingly volatile, uncertain, complex and ambiguous, boards of directors can no longer afford to treat crisis management as a peripheral issue. Building organizational resilience to withstand shocks and bounce back strongly should be a top priority on every board’s agenda. The unprecedented challenges posed by events such as the COVID-19 pandemic underscore this need. This article examines essential priorities for contemporary boards of directors as they build their crisis management strategies.

Prioritizing Proactive Crisis Prevention:
Proactive crisis prevention should be the cornerstone of any crisis management strategy. Boards should proactively anticipate potential crises, conduct risk assessments, stress-test response protocols, and ensure that preventative measures are integrated into the organization’s strategic planning process. According to McKinsey, in 2023, over 75% of Fortune 500 companies have dedicated ‘predict and prevent’ strategies within their crisis management portfolios.

Developing and Establishing a Robust Crisis Management Framework:
Having a crisis management plan on paper is not enough. Boards should ensure the organization has a clearly defined crisis management framework that outlines roles, protocols, and procedures for each stage of the crisis management process. According to the Institute of Internal Auditors, a robust crisis management framework can reduce the financial impact of a crisis by up to 25%.

Forming a Multi-Functional Crisis Management Team:
No single department works in isolation during a crisis. Hence, a cross-functional crisis management team should be formed, comprising representatives from various departments.
This team must be equipped with the necessary authority, resources, and training to effectively coordinate crisis response efforts. A 2023 report by Deloitte revealed that 85% of resilient organizations have established crisis management teams.

Nurturing a Resilient Culture:
Crisis management should not be an isolated function but an integral part of the organization’s culture. Boards play a vital role in fostering a culture of resilience, where every team member understands their role in preventing and managing crisis situations. The Harvard Business Review emphasizes that companies with resilient cultures are twice as likely to succeed in navigating crises.

Investing in Cybersecurity Resilience:
In this digital age, cyber threats have the potential to cause significant crises. Boards need to view cybersecurity not merely as a technical issue but as a top strategic risk. A 2023 report by Gartner revealed that over 50% of boards consider cybersecurity a critical priority in their strategic plans.

Enhancing Stakeholder Communication:
During a crisis, how an organization communicates with stakeholders can significantly impact its reputation and resilience. Effective communication strategies must be a cornerstone of any crisis management program. According to a study by Forbes, nearly 60% of businesses that effectively manage crises have pre-defined and tested crisis communication plans.

Prioritizing Employee Well-being:
In times of turmoil, employee well-being must be a top priority, and boards should ensure support systems are in place. Protecting the health and morale of employees not only fulfills an ethical obligation but also supports business continuity. Findings from a 2023 Gallup poll indicate that organizations prioritizing employee well-being during crises witnessed a 48% reduction in turnover.

Continual Learning:
Lessons learned from crises will shape the organization’s future approach. Post-crisis analysis can provide valuable insights and identify gaps in existing crisis management approaches. A study by Continuity Central found that nearly 72% of businesses that conduct post-crisis reviews experience faster recovery in future crises.

In conclusion, crisis management demands a proactive, robust, and holistic approach. By focusing on prediction, prevention, stakeholder communication, employee well-being, cybersecurity resilience, and continual learning, boards can navigate their organizations safely through turbulent times. It’s crucial to remember that crisis management is not just about surviving the storm but learning to dance in the rain.