McKinsey boss Bob Sternfels laid out how companies can prepare for an Nvidia-like crisis

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Boards should imagine and discuss as many scenarios as possible just in case they happen, said McKinsey chief Bob Sternfels.

As they watched Nvidia's chaotic week unfold, many board members and executives may have found themselves wondering: "What if our CEO has an affair that gets us embroiled in a reputation-shaking scandal?" Bob Sternfels, global managing partner at McKinsey, has some advice for them. The Nvidia crisis has highlighted the importance of corporate governance, Sternfels said in an interview with Bloomberg on Thursday. It's a reminder to have these discussions and prepare for all imaginable situations so that they're not on the back foot when they arrive, he said. "Having a playbook, even if it's close, is much better than figuring it out in the heat of that moment," Sternfels said.

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