Company boards are not prepared for the risks that a British exit from the European Union could bring, The Governance Institute and The Core Partnership (ICSA) has warned.
According to a poll conducted by the professional governance body, 47 per cent of boards have not considered the result of the referendum on the UK’s membership of the European Union and the effect that this might have on their business.
“Whilst not all organisations operate within Europe, it is surprising that boards are not at least considering the knock-on effect that an exit could have on the underlying economy. If sterling goes into free fall this will have an impact regardless of whether or not they have import or export agreements with Europe,” said Simon Osborne, ICSA chief executive, adding, “Boards really need to be thinking about some of the potential implications like staff supply, grants, access to markets and regulatory arbitrage now, whatever the sector.”
The poll found respondents were divided over the impact of Brexit, as well as whether EU regulation is out of sync with UK business needs.