She believes that the board will benefit immensely if the Chair and the CEO is the same person — that’s because this person will have a lot of knowledge about the company’s operations and, therefore, will be able to question and oversee the management more meticulously.
Potential investors are also apprehensive about the lack of sustainability reporting by this company. Focus’s carbon footprint is enormous — their B-Double trucks alone consume almost two million litres of diesel a year. Along with its own fleet of trucks, the company also employs hundreds of sub-contractors, whose fuel consumption is unknown. Mrs Rose-Gardner is aware that all national banks oppose supporting a business that does not have a sustainability plan and target.
Potential investors have expressed further concern at the lack of risk management initiatives at Focus. Recently, Focus has taken on a lot of debt (using their Victorian fleet as security), and therefore the board must constantly monitor Focus’s exposure to financial risk. The investors acknowledge that even though Focus’s operations were not affected by COVID-19 (because the business is classified as an essential service), Focus needs to prioritise operational risk management and urgently draft a business continuity plan.
Board/Management opinions
Mrs White completely dismissed the investor’s views on operational risk. She stated,
“Trucks are the backbone of Australia and will continue to work round-the-clock – as they have done for the last 55 years. I cannot think of a simpler business – buy a truck, get someone to drive it, and a few days later- the customer settles the account. Involving
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