TheCorporateCounsel.net

Election Day is finally here. Boards (and those who advise them) will need to adapt to oversee whichever set of risks & opportunities accompany the outcome. It’s also very likely that the outcome remains unknown for a while – and that situation presents its own risks. This guide from the Erb Institute’s Corporate Political Responsibility Taskforce points out that although companies would prefer to stay above the fray, that doesn’t mean they can ignore foreseeable business risks. Here’s an excerpt:

Businesses face serious risks when democratic institutions erode; proactive risk management is critical: Our expert panel outlined three types of risks businesses may face during this year’s election cycle – Election Risks, Governing Risks and Societal Risks. It is critical to anticipate and plan for a context where the odds of serious disruption may be low but the stakes are very high, and the risks of inaction may equal the risks of action.

When it comes to “anticipating and planning,” the guide links to several resources, including a board deck from the Civic Business Initiative that identifies near-term foreseeable risks to have on your radar:

– Increased levels of stress, distraction, and disharmony among employees adversely impacting productivity and morale;

– Political violence and civil unrest posing threats to the safety of employees and customers;

– Civil unrest causing property damage and interruption of operations;

– Cyber attacks disrupting infrastructure, communications, and financial systems;

– Supply chain disruption;

– Increased market volatility; and

– Capital market disruption.

The deck suggests practical steps to take to manage these risks, identifies dates to be on “high alert,” and provides tools for scenario planning. Even if your board hasn’t had time to scenario plan, you can still use these tools to consider whether & how to escalate issues if the need arises.

Yesterday, for example, the Office of the Director of National Intelligence (ODNI), the Federal Bureau of Investigation (FBI), and the Cybersecurity and Infrastructure Security Agency (CISA) issued a joint statement warning that foreign actors like Russia and Iran are running disinformation campaigns to stoke violence. The statement encourages people to seek information from trusted, official sources, in particular, state and local election officials.

– Liz Dunshee