FTX’s Collapse: A Stark Reminder that the Audit Committee is more than a rubber stamp.

The downfall of FTX wasn’t just a crypto story — it was a governance failure. 

At its peak, the FTX crypto exchange was the envy of the financial world. But like many empires, it crumbled swiftly. Not because of one catastrophic decision, but a series of silent, overlooked flaws. And at the heart of this collapse? The absence of a critical safety net: an independent audit committee.

Here’s the fascinating part. It wasn’t just a failure of numbers or crypto hype. It was a failure of questions. The kind of questions an audit committee asks: 

How solid are these financial controls? 

What risks are we not seeing? 

Who’s watching the watchers? 

Without this sounding board, FTX operated in a vacuum of unchecked optimism, where the allure of innovation drowned out the whisper of caution.

The Takeaway: The audit committee is often seen as a bureaucratic formality — a rubber stamp. But in reality, it’s the unlikely hero of every boardroom story, the unseen hand that guides companies away from the cliff’s edge.

The next time you marvel at a fast-growing startup or a shiny new tech firm, look closer. Who’s asking the tough questions? If no one is, history might just be about to repeat itself.

If there’s one lesson from FTX, it’s this: good governance isn’t just about celebrating success; it’s about catching the fall before it happens. That’s the role I embrace, and it’s one I push every board to take seriously.

#AuditCommittee #CorporateGovernance #RiskManagement #BoardOversight #LessonsFromFTX