Risk Management and the Board of Directors - Introduction

Harvard Law School Forum on Corporate Governance, September 17, 2022

2 Pages Posted: 9 Mar 2023

See all articles by Martin Lipton

Martin Lipton

Wachtell, Lipton, Rosen & Katz

Daniel A. Neff

Wachtell, Lipton, Rosen & Katz

Andrew R. Brownstein

Wachtell, Lipton, Rosen & Katz

Steven A. Rosenblum

Wachtell, Lipton, Rosen & Katz

John F. Savarese

Wachtell, Lipton, Rosen & Katz

Adam O. Emmerich

Wachtell, Lipton, Rosen & Katz

David M. Silk

Wachtell, Lipton, Rosen & Katz

Wayne M. Carlin

Wachtell, Lipton, Rosen & Katz

William Savitt

Wachtell, Lipton, Rosen & Katz

David B. Anders

Wachtell, Lipton, Rosen & Katz

Andrea K. Wahlquist

Wachtell, Lipton, Rosen & Katz

Karessa L. Cain

Wachtell, Lipton, Rosen & Katz

Sarah K. Eddy

Wachtell, Lipton, Rosen & Katz

Sabastian V. Niles

Wachtell, Lipton, Rosen & Katz

Ryan A. Mcleod

Wachtell, Lipton, Rosen & Katz

Anitha Reddy

Wachtell, Lipton, Rosen & Katz

David M. Adlerstein

Wachtell, Lipton, Rosen & Katz

Carmen X. W. Lu

Wachtell, Lipton, Rosen & Katz

Raeesa I. Munshi

Wachtell, Lipton, Rosen & Katz

Cody D. Westphal

Wachtell, Lipton, Rosen & Katz

Date Written: September 17, 2022

Abstract

As companies seek to navigate a multi-stakeholder global landscape and the world continues to adjust to the impacts of Covid-19, significant new risks have emerged that are reshaping the near-term business and risk landscape. These new risks—and the intensification of longstanding risks—are pressure-testing the agility and resilience of corporate strategies, risk management systems and practices. The pandemic accelerated technological disruptions and business model changes and exposed sharp differences in the impacts felt by different sectors, with some experiencing enormous dislocation and others doing remarkably well and arguably emerging stronger. Looking ahead, all sectors of the economy are facing macroeconomic headwinds, including persistent inflation, surging interest rates, continued supply-chain bottlenecks and commodity shortages, all occurring amid the backdrop of the war in Ukraine, China’s zero-Covid policy and growing geopolitical tensions. Severe drought, heatwaves and flooding across the globe have highlighted the burgeoning challenge of climate risks, which, along with the tight labor market and declining fertility rates across the developed world, present near- and longer-term risks that will require significant planning. Cybersecurity also continues to be a significant threat with regulators stepping up focus in step with growing geopolitical risks. In the United States, the 2022 midterms and ongoing political polarization continue to create uncertainties and surprises that companies will need to prepare for and address.

Keywords: Risk management, corporate governance, stakeholder, pandemic, covid business model, economy, macroeconomic, geopolitical risks, cybersecurity, Ukraine, political polarization

JEL Classification: K00, K10, K20, K22, G34, G14, G32, G38

Suggested Citation

Lipton, Martin and Neff, Daniel A. and R. Brownstein, Andrew and Rosenblum, Steven A. and Savarese, John F. and Emmerich, Adam O. and M. Silk, David and M. Carlin, Wayne and Savitt, William and Anders, David B. and Wahlquist, Andrea K. and Cain, Karessa L. and Eddy, Sarah K. and V. Niles, Sabastian and Mcleod, Ryan A. and Reddy, Anitha and Adlerstein, David M. and Lu, Carmen X. W. and I. Munshi, Raeesa and D. Westphal, Cody, Risk Management and the Board of Directors - Introduction (September 17, 2022). Harvard Law School Forum on Corporate Governance, September 17, 2022, Available at SSRN: https://ssrn.com/abstract=4266210

Martin Lipton

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States
212-403-1000 (Phone)
212-403-2000 (Fax)

Daniel A. Neff

Wachtell, Lipton, Rosen & Katz

Andrew R. Brownstein

Wachtell, Lipton, Rosen & Katz

Steven A. Rosenblum

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

John F. Savarese

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

Adam O. Emmerich (Contact Author)

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States
(212) 403-1234 (Phone)
(212) 403-2234 (Fax)

David M. Silk

Wachtell, Lipton, Rosen & Katz

Wayne M. Carlin

Wachtell, Lipton, Rosen & Katz

William Savitt

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States
212-403-1329 (Phone)
212-403-2329 (Fax)

David B. Anders

Wachtell, Lipton, Rosen & Katz

Andrea K. Wahlquist

Wachtell, Lipton, Rosen & Katz

Karessa L. Cain

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

Sarah K. Eddy

Wachtell, Lipton, Rosen & Katz

Sabastian V. Niles

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

Ryan A. Mcleod

Wachtell, Lipton, Rosen & Katz

Anitha Reddy

Wachtell, Lipton, Rosen & Katz

David M. Adlerstein

Wachtell, Lipton, Rosen & Katz

Carmen X. W. Lu

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

Raeesa I. Munshi

Wachtell, Lipton, Rosen & Katz ( email )

51 West 52nd Street
New York, NY 10019
United States

Cody D. Westphal

Wachtell, Lipton, Rosen & Katz ( email )

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