I gave a presentation to a board of directors last night on issues arising from the sub-prime crisis and the credit crunch.

I made the observation that in times of uncertainty it was important for directors to pay close attention to market conditions and think about how they affect your business (eg your customers, your cash flow and funding).

In reality this is just an extension of directors fulfilling their duty to keep themselves fully informed about the business and obtaining whatever advice they need to make reasonable business forecasts.

But it is equally important for directors to communicate with each other and management and shareholders about these issues. And, of course, your industry regulator.

Board communications are critical if a crisis occurs.