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By Henry Uche
Corporate leaders have been charged to proactively but intelligently address risk and crisis management in their respective organizations in the current volatile, uncertain, complex and ambiguous (VUCA) global business environment if they must survive.
Administrative and management doyens who gave this charge in Lagos also said there is need for policy framework and alignment with smart crisis and risk governance, if organizations must survive the scorching economic landscape.
Speaking at the induction ceremony of over 334 new members of Chartered Institute of Directors (CIoD), Nigeria, the President & Chairman of Governing Council of the Institute, Mr. Otunba Adetunji Adetokunbo Oyebanji, said in today’s volatile business environment, crises has become part of the new normal, ranging from economic shocks and cyber threats to regulatory shifts and geopolitical pressures.
In such times, he stressed, corporate reputation is both fragile and crucial, but for directors, sound governance is essential, providing clarity of roles, effective oversight, commitment to leadership, governance, and resilience, and accountability.
“Boards that anticipate risks, maintain robust systems, and respond transparently are better positioned to guide their organisations through uncertainty and preserve stakeholder trust. To our inductees, as you join our ranks as directors, remember that this honour comes with a personal call to embody ethical leadership and uphold the highest standards of corporate governance”
Oyebanji admonished them to follow professional principles to guide their actions daily with integrity and purpose. “Take up your mantle with humility and courage. Your induction is a vote of confidence in your ability to lead in complexity. You must get committed to lifelong learning. The governance ecosystem is evolving. Stay sharp, engage in continuous development, and leverage the CIoD’s programs and networks.
“Lead with character. Let integrity, transparency, and stakeholder respect guide our decisions. Build resilient boards. Advocate for risk frameworks, crisis planning, and governance structures that allow your organizations to adapt and recover”
CIoD boss charged them to defend and nurture their reputation and see every crisis as a test, not just of survival but of stewardship. “When you communicate, do so with clarity, empathy, and ownership. We must renew our conviction that great governance and resilient leadership matter, especially in times of crisis. This is how we strengthen corporate reputation and build institutions that stand the test of time” he added.
With the theme, ‘Leadership, Governance and Resilience: Strengthening Corporate Reputation in Times of Crisis’, the guest speaker, Mr. Nnamdi Okonkwo, a former Group Managing Director/CEO, FirstBank Holdings Plc, challenged the new crop of corporate leaders to set the tone at the top by ensuring that they model what they want those they are leading to be in terms of keeping their word, being an transparent and exhibit accountability.
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The renowned banker encouraged new directors to equip their personnel with skills and knowledge which enables them know what to do as situations arise. In addition, they should make their policies and procedures clear, well communicated and executed with discipline.
“Stakeholder engagement is key. Accountability responsibilities must be clear to all so that there’s no passing the buck. Regular review and monitoring of ethical and governance practices both at leadership and Board levels help keep the company resilient. Stringent risk management practices must be followed. In today’s volatile business environment, leaders are faced with unprecedented challenges.
“From economic downturns to social unrest, technological disruptions, and global health crises. The ability to navigate these storms while maintaining a strong corporate reputation is a hallmark of exceptional leadership. More so, constitution of the Board is another key determinant of how resilient a company can be in times of crisis”
Okonkwo emphasized that effective governance determines how resilient the organization is, more over, emphasis should be placed on ensuring the organization has the right structures, policies, and processes in place.
“With the foregoing combined with strong execution culture the organization can rest assured that the outcome will be accountability, transparency, and fairness. As directors, you play a critical role in setting the tone at the top and fostering a culture of compliance and integrity.
“Leadership is about making tough decisions, often with limited information, and communicating them with conviction. It’s about empowering your teams to innovate, take calculated risks, and learn from setbacks. And, most importantly, it’s about demonstrating unwavering commitment to your organization’s values and mission, even in the face of adversity.
“A good way to understand why we should anticipate crisis is to recall the concept of VUCA in our operating environment i.e. Volatility, Uncertainty, Complexity and Ambiguity. The reality is that you can’t prepare enough in a VUCA world, bhtcas an organization, we must realize also that doing nothing is not an option, as doing nothing seems to back up the popular saying that no one knows tomorrow.
“Yes, that may be true but it is also true that you can prepare for tomorrow by imagining tomorrow in deliberate, upfront scenario planning exercise that identifies a plethora of what can go wrong and what stakeholders should do to mitigate the crisis such as financial crisis, reputational crisis, operational Crisis, cyber security crisis and leadership crisis.
“We must acknowledge the crisis: recognize the issue and take responsibility. We must activate and assemble crisis management team. Gather key stakeholders, gather facts and accurate information about the crisis and communicate transparently.
“Ensure you share updates with stakeholders and the public, take action, implement measures to resolve the crisis, monitor and adjust, build relationships, focus on doing what is right, not just what is required, embrace diversity, equity, and inclusion as a business imperative, prioritize sustainability and social responsibility arnd always prepared to adapt and evolve in response to changing circumstances” he charged.
