In Episode Four, John and Stephanie discuss how corporate boards and officers should respond to negative financial news and specifically the speculation that a recession in 2023 appears inevitable. Stephanie and John look at this topic through the lens of the liability risks that a recession – and talk of a recession – pose for directors and officers. First, using the comparison of the COVID pandemic, they explore how company leaders and decision makers might be faulted for failing to prepare for a recession. That leads to a discussion of how boards should communicate with shareholders about recession concerns. Finally, they talk about how a recession can disrupt a company’s prior decisions and existing commitments on a variety of issues, such as ESG, recruiting and compensation.