![\"Buiilding_Boards\"](\"https:\/\/berkonomics.com\/wp-content\/uploads\/2011\/09\/Buiilding_Boards.jpg\")
<\/a>Boards of directors for companies of all sizes should have a person or better yet a committee dedicated to considering the preparations for disaster recovery.\u00a0 Often, we consolidate this task into the audit committee of a board; and often we expand the subject to \u2018risk management\u2019 which includes examination of all forms of risk, from insurance coverage to OSHA compliance and more.<\/p>\n[Email readers, continue here…]<\/span><\/em>\u00a0 When a company is very small and the company\u2019s assets reasonably replaceable with existing or easily borrowed funds, the event is less likely to threaten the existence of the organization.\u00a0 As a company grows in size and complexity, more stakeholders depend upon the wisdom of the CEO and the board to think in advance of these unpleasant things, and to attempt to insulate the company\u2019s dependents from a disaster.<\/p>\n How about yourself?\u00a0 Have you been open in sharing your knowledge and talent with a backup, or even a potential successor?\u00a0 It is prudent and certainly a sign that you take this responsibility personally as a leader among your peers and subordinates.<\/p>\n I have three unfortunate examples in my past of founder-CEOs dying suddenly at their prime.\u00a0 The shock to each organization was a threat to the very core in all three instances.\u00a0 Yet as we will discuss in detail in a future insight, in one, the board stepped in immediately to reassure the stakeholders, elect a new CEO from within the board, and reach out to the community with a plan for succession that allowed the business to continue with minimal interruption.\u00a0 In another, the creditors threatened to close the company, and the board was completely unprepared to respond.\u00a0 The contrast was quite a lesson to me \u2013 one that I would never want to repeat as a board member or senior manager.<\/p>\n What if?\u00a0 How about dedicating at least a half hour of your next executive or board meeting to the subject, and creating a checklist and assignments for covering at least the greatest three risks identified?\u00a0 It is yet another sign of your growth and growing wisdom as a leader.<\/p>\n","protected":false},"excerpt":{"rendered":" Have you ever lost all of your data on your smartphone, laptop, or desktop PC?\u00a0 If not, it is probably only a matter of time until you do.\u00a0 Those of us who have experienced this heart-stopping event now regularly back … Continue reading