How Boards Can Navigate Crises in an Era of Upheaval
By Lars Faeste and Kate Brader for FTI Consulting
As 2025 unfolds, boardrooms worldwide face heightened complexities. Uncertainty, compounded by decisions on tariffs, supply chain pivots, conflicting regulatory approaches across key markets, rapid tech leaps and game-changing geoeconomic tensions, demand that boards be crisis-ready in extraordinary times. It’s not about micromanaging every detail—it’s about the board harnessing their unique ability to see the bigger picture and anticipate both risks and opportunities. However, a recent Economist Impact survey of 600 primary legal decision-makers sponsored by FTI Consulting shows only 23% of boards currently oversee their organisation’s crisis management processes. In today’s unpredictable and high-stakes environment, it is crucial for boards to take an active role in crisis planning and preparation—not just to support senior leadership but to ensure the organisation is proactive, agile and resilient. In this article, FTI’s EMEA Chairman, Lars Faeste, provides expert insights for companies facing uncertainty and unique complexities.
Robust crisis governance goes beyond ticking off continuity plans or assessing team readiness. It calls for boards to leverage their expansive perspective to evaluate the organisation’s overall strategic direction. When a crisis strikes, the board is there for support but also to challenge senior executives to ensure they are acting in the interest of stakeholders. After a crisis, it is the board’s role to consider what happened, conduct reviews to determine what could have been prevented, draw lessons and advise on the changes that will improve resilience and reduce future risks. This will help to transform crisis handling into a hallmark of strength and stability.
Turn Red Flags Green
With transatlantic relations entering a new era, there has never been a more urgent need for boards to actively monitor geopolitical red flag that may quickly escalate, affecting access to markets, corporate reputation and investor confidence. According to recent data, many organisations fail to consistently monitor for red flags with their operations or their strategic partners. Three-fifths of surveyed organisations said red flags are escalated less than once a month, and if recent years have taught us anything, it’s that businesses can no longer afford to be reactive.
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