Your Risk Tolerance Has Changed. Does Your Leadership Team Know That?

As competitors faced bankruptcy, “John,” the CEO of a midsize retailer, had received a clear directive from his board: prioritize liquidity or prepare for a leadership transition. His internal risk dial shifted instantly. He moved from playing for market share to operating for survival. But while his priorities had changed overnight, he hadn’t fully reset how decision authority was being interpreted across his team: He was just 48 hours away from presenting a lean survival plan to the board when he discovered his team had already committed millions based on priorities that no longer applied.