Jim DeLoach of Protiviti is an old friend. We enjoy discussing risk management over a meal, finding that we agree on far more than we disagree. Where we do disagree, it may be more by way of expressing ourselves, or due to our different positions and perspectives. His work always, in my experience, merits our careful attention and reflection. Jim recently wrote Positioning Independent Risk Management to Succeed: 6 Ways to Support the CRO.
Lululemon announced Monday that chief executive officer Christine Day will be stepping down after a five-year tenure. Shares plummeted after the statement, down 15 percent by Tuesday morning. During her time as CEO, Day helped grow the high-end yoga brand’s sales to more than $1 billion annually. It’s clear that CEO transitions present a great deal of risk for shareholders, especially as new perceptions are formed. So what’s the best way to deal with risk mitigation during publicized CEO transitions?