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The chief executive is standing near the boardroom window at 6:40 p.m. The executive committee has been meeting since lunchtime. The numbers on the screen are no longer moving, cash collections are deteriorating.
A major customer has delayed payment, the bank is reconsidering the company’s facilities, a critical technology project is six months late, staff turnover in the commercial team is rising and the regulator has requested information management cannot reconcile quickly.
The chief financial officer breaks the silence. “Should we inform the board?” “What exactly should we tell them?”
That question sounds responsible. It is usually evidence that governance has already failed. The real debate is not whether to inform the board. The debate is whether management still controls the problem well enough to present it without losing credibility. READ MORE |