In the army, they use the expression 'Fail to prepare, prepare to fail.' That becomes very obvious in a major global crisis, but unfortunately human beings are very good at moving on and forgetting risks to get on with their lives when the crisis is over.
We need a step-change in corporate governance to make resilience planning and testing to be at the heart of the role of the Board.
The Covid-19 outbreak has exposed the thin margins on which much of global business runs. Highly indebted companies, working from lean inventory, supported by just-in-time supply chains and staffed by short-term contractors, have borne the brunt of the sudden blow. They will now suffer the rolling, longer-term impact of its unpredictable consequences. Too late, many executives and owners have realised that by pursuing the holy grail of ever greater efficiency, they sacrificed robustness, resilience and effectiveness. In many cases, they will turn out to have sacrificed the business itself.