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In March 2013, Lululemon Athletica removed its inventory of women’s black yoga pants from its stores because recent shipments of the product were “too sheer.”
For a company reliant on a reputation for quality, the news was devastating. Worse, the recall set off a series of PR related disasters that were largely of the company’s own making.
We examine these events in greater detail, and ask:
• Why are companies so ill-prepared to manage risk?
• How can companies develop a reliable way to track and respond to risk?
• How can companies better manage social media risk?
• When do risk-related matters become a board-level issue?