Essential Lessons for Those Starting a Career in Corporate Governance
As you begin your journey into corporate governance, it’s vital to understand what happens when governance fails—and how you can avoid making the same mistakes. Boardroom failures don’t just affect businesses; they impact employees, communities, and public trust.
Learning from some of history’s most significant board failures—both internationally and here in Ireland—will equip you with the insight and tools to be an effective, responsible board member.
Why Board Failures Matter for You
When boards neglect their duties—whether by overlooking risk, ignoring governance frameworks, or prioritising short-term gain over sustainable leadership—the fallout can be catastrophic. These failures often lead to financial loss, reputational damage, and sometimes even legal consequences.
For aspiring governance professionals, these cases offer a masterclass in what not to do, and how strong governance could have changed outcomes.
Key Lessons from Some of the Greatest Board Failures
1. RTE: Public Trust and Accountability Under Pressure
In recent years, RTE faced intense scrutiny over governance lapses related to transparency and accountability in editorial and operational decisions. Questions arose about the oversight role of the board and its ability to respond to public concerns and internal issues effectively.
Lesson: Boards of public organisations must maintain clear accountability and openness. Public trust depends on strong governance structures that enable timely response to risks and transparent communication with stakeholders.
2. The Football Association of Ireland (FAI): Governance Gaps and Financial Oversight
The FAI’s governance crisis, triggered by financial mismanagement and lack of controls, led to a government bailout and widespread calls for reform. The board was criticised for inadequate financial oversight and failure to enforce robust governance standards.
Lesson: Boards must prioritise financial controls and compliance, especially in organisations handling public funds or donations. Effective risk management and audit processes are non-negotiable.
3. Irish Bank Resolution Corporation (IBRC): Consequences of Poor Risk Management
IBRC’s collapse was one of Ireland’s most high-profile financial failures following the global financial crisis. The board was widely criticised for insufficient oversight of risk and failure to manage the organisation’s troubled assets effectively. The fallout included massive losses to the Irish taxpayer and widespread public concern.
Lesson: Boards in financial services must have a deep understanding of risk and asset management. Robust governance frameworks are essential to safeguard stakeholders and the public interest.
4. Sports Direct: The Cost of Ignoring Worker Welfare
A 2015 exposé revealed harsh working conditions and management failures at Sports Direct’s warehouses, overlooked by the board in favour of profit.
Lesson: Boards have a fiduciary duty to oversee people, not just profits. Ethical governance means embedding worker welfare into strategy and ensuring management accountability.
5. Enron: The Catastrophe of Blind Oversight
Enron’s board failed to challenge deceptive accounting practices, enabling one of the largest corporate frauds in history.
Lesson: Directors must be engaged, financially literate, and courageous—willing to ask tough questions and scrutinise management actions diligently.
6. Blockbuster: The Danger of Complacency and Resistance to Change
Blockbuster’s downfall was driven by a board that failed to recognise and adapt to digital disruption.
Lesson: Boards must embrace innovation and stay informed about market trends to ensure long-term relevance.
Common Themes in Board Failures and How You Can Avoid Them
To thrive as a governance professional, start by:
- Pursuing formal education, such as the MSc in Corporate Governance at Hibernia College
- Developing critical thinking and risk awareness
- Seeking mentorship and networking opportunities
- Embracing accountability and continuous improvement
Start Strong with the Right Education
Ireland sits at a crossroads of global trade, tech innovation and regulatory evolution.
Our MSc programme is:
- Dual-accredited with full Chartered status from the Corporate Governance Institute (UK & Ireland)
- The only blended learning programme tailored for the Irish governance landscape
Flexible, allowing you to study alongside your career
