An Ounce of Prevention: Stress Testing Your Governance

Smart organizations control their destinies. With governance issues underlying more and more business disputes and high-profile scandals, organizations today must ensure a robust governance structure that facilitates success while guarding against legal and ethical pitfalls.

A robust governance structure:

Improves operational efficiency;

Reassures institutional investors, other shareholders, and insurance carriers; and

Prevents issues with regulators, activists, and potential litigants.

Stress Testing

Just like an organization audits its financials, a stress test of its governance structures, policies, and procedures can provide reassurance to investors and other key stakeholders.

It is not a one-size-fits-all approach. While there are some fundamental guidelines, what works best for a given organization at a specific point in time will depend on many factors. Drawing upon our 1,000 years of combined senior management and board experience, as testifying experts in some 150 cases and thought leadership with more than 60 articles in peer-reviewed journals, the experts at H.S. Grace & Company, Inc. can examine your governance structure and programs for effectiveness and identify any weak points before problems arise.

Is your decision-making structure adequate for your organization?
Is the structure and function of your organizational leadership appropriate?
Are the roles and responsibilities of the directly and indirectly involved parties properly defined?
How does the management-board interface function, both internally and externally?
Are the appropriate checks and balances in place for management, and between management and other decision-makers?

HSG’s real-world, practical experience in making complex business decisions in different industries allows us to quickly determine and evaluate the key issues and determine strengths and weaknesses within the plan-operate-control cycle of the firm.

We Can Help
HSG has a long-established reputation as a corporate governance expert, both inside and outside of litigation, representing boards, insurance carriers, and defense and plaintiff counsel. We understand that robust checks and balances, within and among participants, are critical for effective governance. Our team of senior executives draws upon on our deep business expertise to analyze and stress test the adequacy and operation of the structures, policies, and processes in place to carry out corporate governance responsibilities, recognizing these are unique to each organization and the point in time.

HSG Evaluates Appropriateness of Directors’ and Officers’ M&A Due Diligence

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