Survival of the Firm is not Mandatory
Is that idea really understood by top management and the board?
Does the board leave every meeting certain that the firm will still be in business when the next scheduled board meeting comes around? How did they get to that certainty?
Can management tell them the likelihood that the firm will experience a fatal loss and how much that likelihood has changed since the previous board meetings?
Can management tell them exactly what sorts of events could put the firm out of business? Have they discussed the sorts of “highly unlikely” events that might take the firm down if they suddenly did happen?
Those are, of course, the conversations that the board might well demand to have if they really understood that Survival is not Mandatory.
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