It is 2016 and Wells Fargo had just “survived” one of the biggest scandals of the decade. The creation of millions of fraudulent checking and saving accounts in the names of clients who had not given their consent. This event resulted in the loss of hundreds of millions of dollars and over 5,000 employees. A hit like this is not easily resolved or swept under the rug. But how? How did this company, one of the biggest banks in the world, dig itself into such a deep, expensive hole?
Good board members ask good questions.
Risk exists in every organization and it is a board member’s role to probe until they are convinced that management is not incurring any undue risk or risk that is outside of the boundaries they helped to establish. Board members must be cognizant of the lengthy list of risks that exist. Be it: