Boards are paying more attention to risky business outside the office, Gray Rhino & Company CEO Michele Wucker writes in her strategy+business column November 21 “Why your CEO’s personal risk taking matters.”
The recent ousters of prominent CEOs over personal missteps, whether over a questionable relationship or reckless behavior, are drawing newfound attention to a connection that boards have long overlooked: the link between social risk-seeking behaviors and the risk decisions CEOs make on the job.
Obviously, companies don’t like reputational risk. But that’s not the only reason to be wary of CEOs with messy personal lives. Such lives may predict bad risk decisions when it comes to finance, strategy, or other operational issues.
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