Be It Resolved: Disruption Doesn't Erode Trust, it Rewards it

If trust is the lifeblood of both good governance and by the sound of it, good corporate performance in this environment, it sounds like complacency is really the risk here, that if boards aren't attuned to this notion of trust, it's a big problem.

Let's talk a little bit more about what signals should boards be really looking at to try to anticipate misconduct, risks, or emerging governance problems around this idea of trust.

Yeah, I think there's an MO, a way of that these things start happening.

So usually when there's misconduct in an organization, it doesn't occur overnight.

These things have been brewing over time and signals have been given over time.

I think the boards need to be active listeners.

Speak to people, have direct lines with the folks in compliance and risks to know what the engine is doing and who's going away.

I mean, like the other part is what gets real global companies in trouble at the end is superstar managers.

They divert too far off the mean.

There's topics that we consider taboo, whether it's doing business in a certain market or in a certain way.

And we call them fancy names.

We cannot tell you about these because this would be in a, you know, it's a national security contract.

We have natural ways of hiding things.

Look for dark corners.

Look for taboo areas.

Be careful with your superstar managers.

And just sometimes be stupid on the board and say, I really don't understand what was just said.

And maybe I need a half an hour afterwards somebody can explain it to me.

Because sometimes things that are too good to be true or too complex to understand, that can be an indicator of problems.

It's a people thing, isn't it?

Totally.

Intuition, judgment, which is so much, you know, relying on

experience.

Yeah.

But I'm seeing you, your body language says, you know, people trust your instincts here.