ABSTRACT
How can effective directors minimise the risk of being the latest casualty?
Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to the viability of a company.
All directors should ensure that they consider the longer-term viability of the company taking into account a variety of different considerations. Viability should be looked at in the light of the financial position with lenders and capital, the ongoing risks surrounding the company and industry, and risks of global shocks. There should be stress-testing of viability in various scenarios so the board and management have a picture of how severe events could impact the company.
The chapter considers what role boards take in considering viability and the areas for the board to consider such as finance, risks, purpose and culture, sustainability, and diversity of thinking.
The chapter’s introduction leads into outlining the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the board.
