• Planning Ahead - The Board’s Role in Crisis Management
  • March 11, 2013
  • Law Firm: Alston Bird LLP - Atlanta Office
  • The past few years have provided numerous examples of the costs, both financial and reputational, that can accompany corporate mismanagement of an emergency or crisis situation. From product recalls to environmental disasters to conduct by senior executives that call their integrity into question, it is almost a given that every public company board has confronted or will have to confront an emergency or crisis situation. While there may not be a completely satisfactory response to a given crisis situation, a crisis handled poorly can greatly exacerbate the costs of such an event, particularly given that the financial and reputational harm caused by these failures is now amplified by the twitterverse and blogosphere. The speed with which information, true or false, can be disseminated has increased manyfold, and it is in this environment of near-instantaneous communication that all companies, for better or worse, now operate.