No Match Found
As organisation become bigger and more complex to meet the ever changing consumer, and societal demands, failures of governance are becoming increasingly common.
Recent examples of how companies have been impacted by governance failures include:
Such incidents have the potential to cause severe financial, operational and reputational problems for an organisation, including high costs associated with investigating the failure, managing repercussions and effecting remediations.
Consumer reactions and regulatory responses to a governance failure can result in lost customer revenues and substantial reputational damage. News of the failure can spread extremely quickly on social media, and at the same time, regulators’ expectations are increasing. As a result, effective and rapid situational response and crisis management needs to be a strategic priority.
Rapidly and effectively responding to a significant governance failure can be challenging. Some of the common obstacles include:
These challenges highlight the complexities in managing the rapid mobilisation of an effective remediation operation.
Taking definitive action within the first 48 hours is critical. Many companies spend this time scrambling to organise a response team and obtaining the necessary information for senior individuals to make decisions and prevent further disruption. The result is the issue continues to grow. Below, we identify the four pillars of a successful response to governance failure.
We can set up and run a crisis ‘war room’ to lead your response, or we can shore up your existing strategic and operational capacity when needed. We can help prepare or review your crisis response strategy, governance, crisis communications and stakeholder management plans. We can mobilise within hours to provide operational, regulatory and legal support, as well as technical analysis.
By rapidly reviewing the current governance structures and approach to decision making, including interrogation of policies and procedures, we can make independent recommendations to strengthen governance and decision making processes for your business, based on our experience supporting clients.
Using your existing systems, or a PwC proprietary tool such as Evidence Links, we can establish a system to record your decision making with the relevant supporting evidence. Our approach is flexible and responsive, and will give your leadership real-time insight into decisions being made and how these align with your company’s risk appetite.
We have considerable experience in managing large-scale and complex remediation exercises relating to product failure.
We can rapidly review the governance and evidence that was used to make decisions that led to failure, helping you better understand what went wrong. This includes both decisions that have been formally documented, and those made outside governance forums, along with the associated evidence and record of those decisions.
When an organisation faces an investigation or crisis, a successful outcome depends on the organisation’s ability to access all relevant data. Identifying structured data sources in a complex environment calls for specific technical capabilities and tools. Our specialist teams are experts in capturing data, from ERP systems to trading and point of sale systems.
When crisis hits, understanding large and complex datasets can be difficult. But a successful outcome is dependent on your ability to analyse this data and draw meaningful conclusions. Our skilled data scientists are experts in analytics and visual representation of data. Using the latest technology, we make your complex data easy to use and understand – ensuring that you can identify and distil key findings as quickly as possible.
We can help you evaluate your options around third party disputes and insurance claims in the wake of governance failure, and work with you to consider potential outcomes and resolution mechanisms.