Tip Sheet: A Risk-Sensitive Culture Can Stave Off Crises

For the auto parts maker, it was a perfect storm. The customer service center was receiving an increase in calls about a product that seemed to be failing in an unusual way. In the dealer relations department, distributors were reporting similar problems and demanding to know what to tell angry customers. Down the hall, a backlog of warranty claims was forming. And the legal department was just catching wind that an overseas subsidiary was facing a product liability suit and had begun recalling the product.

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