In his blog, IIA President and CEO Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, shares his personal reflections and insights on the internal audit profession. Here’s an excerpt from his latest post:<\/p>\n
The actions of high-profile CEOs and board chairmen can create share volatility and investor uneasiness, and the troubles of Tesla CEO Elon Musk provide a perfect example. Controversial statements and act\u200bions by Musk have sent Tesla’s stock price on a wild roller-coaster ride.<\/p>\n
This got me to thinking about the risks associated with high-profile company leaders. When a CEO’s brand becomes one and the same with the organization, his or her actions are more likely to be magnified, scrutinized, glorified, or vilified. And that poses a new level of risk that many organizations may not be prepared to handle.<\/p>\n
In Musk’s case, a single tweet stating he was considering taking Tesla private at $420 a share \u2014 “funding secured” \u2014 sent the electric-car company’s stock skyrocketing to nearly $380 a share. It subsequently plummeted when the prospective financier \u2014 the Saudi Sovereign Wealth fund \u2014 announced there was no deal in place.<\/p>\n