Risk management capacity

I had an opportunity to hear a topic about the risk management capacity by Carlos Ghosn from a chief manager of Nissan Motor.


Carlos Ghosn is CEO of Nissan Motor in Japan as well as Renault in France, thereby he is one of the busiest business executives in the world. The speaker told that he stays Japan only one week a month. He travels anywhere on the earth the other three weeks.


In the week in Japan, his schedule is always filled with meetings or events. Just after two days when Lehman Brothers went bankrupt on September 15 in 2008, Carlos Ghosn called off a regular meeting with directors of Nissan Motor over the world. He delivered a fiery speech to them and ordered every departments and factories to halt cash inside.


Although other executives and directors didn’t understand what would happen after the bankrupt of Lehman Brothers, Carlos Ghosn probably got some advice or information from his relations over the world, and quickly realized that the world depression would occur and money would become mere scrap of paper.


The speaker said that managers or employees of Nissan Motor were tempered by Carlos Ghosn. If he left the company at present, Nissan would grow with regular base. However, when something serious crisis happens, they can hardly find business leaders who adequately understand the situation, judge it and manage the company.


I believe that this is a risk management capacity. I think that top leaders need these capability with abundant relationship, experience.


At the moment, Nissan Motor is on a good business. However, Renault is struggling with the credit crisis in Europe.