Challenge, Failure, Prevention and Redemption are all words that can be used to characterize recent corporate governance as Boards have faced dramatic changes in systemic and individual organizational risk. The questions become: How did we get here, what can we learn and how do Boards proceed in the current environment? A key to this question can be found in studying recent failures and the resulting securities litigation. The role of the Audit Committee seems to be an appropriate starting point; in some instances the Audit Committee appears to have been ground zero for some of the failures.We can study these failures to learn what and why it went so wrong, to identify weak spots and suggest improvements.
What will be different in 2025 from today? What should you innovate, invent, create or build? What steps should you take today to position yourself and your company to flourish tomorrow?
We are very pleased to have Kara Sprague, a McKinsey principal, with us for this SVDX podcast. She will discuss the global trends that are shaping the world of 2025 and what they portend for companies and their boards.
In October 2011, investors and analysts began questioning certain crop payments made by Diamond Foods to its growers. The Audit Committee of Diamond Foods’ board of directors commenced an internal investigation of the company’s accounting practices. The timing could not have been worse: Diamond was weeks away from closing an acquisition of Pringles from Procter & Gamble valued at $2.35 billion. The Audit Committee investigation began a period of intense crisis and turbulence for Diamond that few could have predicted at the time.
In the face of such adversity, it’s remarkable that Diamond managed to navigate a path to survival and recovery.