Global crisis situations and disasters highlight the importance of securing board members and executives
Global crisis situations and disasters highlight the importance of securing board members and executives The scope of responsibility for corporate decision-makers is changing with the fluctuation of labor reality
While most global efforts are focused on tackling the spread of the Covid-19 virus, experts are that specialize in assessing the economic, political and social impacts of the pandemic, and trying to see what the planet will appear as if after its end. Amid this difficult reality, company managers and officials find themselves facing many difficult challenges that need them to form critical decisions about business strategy and continuity without having much time to review these decisions sometimes, and thus assume responsibility for the results of their decisions ahead of shareholders, employees and customers. Given the dimensions of the responsibilities that they assume, managers cannot make any wrong strategic decisions, as long as the incorrect decisions represent an immediate threat to the roles of the work team and therefore the continuity of the corporate as an entire . reciprocally for all their efforts to guard the businesses and therefore the assets they manage within the difficult business environment that the planet faces today, company managers and officials have the proper to ask the elemental question: “If we are those who protect companies with our decisions, who will protect us from the results of those decisions?” at the present , managers and heads of companies are making decisions which will be described as historic, whether in terms of adjusting the way their companies operate, managing customer and shareholder relationships, or the model for external communication activities and other decisions. Company managers are forced to deal with the rapid changes within the reality of the market, which fluctuate almost daily, without a transparent model which will be followed, but they need to analyze this reality and make the acceptable decision for his or her companies. within the midst of this business model, the importance of securing the responsibility of members of the board of directors and executive directors, because it provides them with financial protection within the event that they’re legally held accountable by the shareholders of their companies regarding the choices they took to guard the employees’ jobs and therefore the continuity of the company’s work The insurance policy for members of the board of directors and executives (and managers in leadership positions) provides the required protection within the face of the claims submitted against them, associated with the choices they took or did not take under the positions they occupy and therefore the tasks assigned to them, as this policy compensates for the prices of legal pleading and any compensation approved by it. Elimination. Among the foremost prominent claims that are filed against members of the board of directors and executive directors, which are more likely to occur with the spread of the Covid-19 pandemic: • Violating health and safety rules and regulations, like employees submitting claims associated with their work conditions which will cause them to be infected with the Covid-19 virus, as a results of insistence to figure In offices despite government directives stating otherwise. additionally to covering individuals, the insurance coverage for directors and executives might be expanded to incorporate reimbursement of public or private companies for related costs, including statutory fees borne by directors. Coverage may include the corporate as one entity in reference to claims associated with the company’s share price. While security claims are the foremost common category of insurance claims for directors and executives, managers today face various claims, including those associated with the way during which their workforce and team are managed. within the event that the manager obliges employees to figure within the company’s offices and exposes them to the danger of contracting the Covid-19 virus, the manager will bear responsibility for his decision and therefore the resulting legal consequences. With most companies moving towards a foreign working model, managers must take full care and caution about their IT decisions, especially as cybersecurity threats increase. Cybersecurity is one among the responsibilities of executives, and within the event that they are doing not take appropriate steps to make sure the safety and integrity of the company’s data and knowledge , the steadiness of their mismanagement and therefore the incontrovertible fact that these decisions are the results of a wrong decision and aren’t intended to intentionally harm the interests of the corporate , securing the responsibility of board members and executives can play a pivotal role. In protecting the corporate and its people, including managers. Although the worth of the insurance marketplace for members of the board of directors and executives is about 15 billion US dollars, many companies don’t exploit this important sort of insurance, especially among small and medium companies, thanks to their insufficient knowledge of its importance, and therefore the prevailing belief that such type Insurance is extremely expensive and doesn’t provide significant added value to the corporate .