TrustTalk - It's all about Trust

Trust in Times of Crisis: Corporate Perspectives

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Episode notes

Our guests today are Peter Wakkie and Tjeerd Wassenaar, talking about trust, crisis management, and corporate governance, leveraging their extensive experience in legal and corporate roles. They emphasize the critical importance of maintaining trust, highlighted through an example of an M&A transaction impacted by the COVID-19 pandemic, demonstrating how unexpected events can complicate negotiations and the importance of adaptability and integrity in such situations.

They show the importance of proactive risk management, advocating for a strategy that involves staying ahead of potential threats to protect the company's reputation and maintain trust. They discuss the necessity of a "trust but verify" approach and highlight the value of clear, enforceable rules over ambiguous principles to ensure consistent corporate behavior, reflecting on how these practices integrate into a company's DNA.

Peter shares his cautious stance on using communication experts during crises, stressing the conflict between the need for transparency and the potential legal repercussions, advocating for a balanced approach to crisis communication.

A significant focus is given to the practical application of the Three Lines of Defense model in risk management, emphasizing the need for active involvement and regular checks across company units to prevent crises effectively.

The podcast wraps up with reflections on the evolving business climate in the Netherlands, particularly discussing the challenges posed by the disconnect between business expectations and governmental actions. They explore how different corporate governance approaches, like the stakeholder model prevalent in Europe, impact business operations and decision-making, particularly in contrast to the shareholder-focused models in the UK and the US.