If the point of Risk Management is to prevent being blown off course, the News International organization gets an “F.” 

The News of the World, until recently one Britain’s biggest and most profitable papers, is now shut down.  It is accused, and seems to have admitted to, acts of bribery to gain unethical access to voicemails of ordinary Britons who were victims of crime or terrorism.  This has incensed the British public, and British politicians who are now moving to launch at least two inquiries.  The political furor has also led to Murdoch abandoning his bid for BSkyB – a UK satellite and pay TV company that News International hoped would help diversify its newspaper holdings, which have challenging long term prospects in the Internet era. 

Most notably, this issue has been simmering for a number of years.  The allegations go back 4-6 years.  It seems that the team that was let go when the News of the World was shuttered was largely innocent of any wrongdoing. 

Two quotes from the last issue:

• We didn’t see it coming – comment of an editor who was surprised by the shutdown

• We Lost Our Way – title of the final issue’s editorial

The situation will get more complicated for News International before it gets better:

• Allegations of wrong doing have been leveled at other News International newspapers
• Police investigations and Parliamentary Inquiries are underway
• In the US, law enforcement agencies have been asked to look at whether there were violations of the Foreign Corrupt Practices Act (commonly called the FCPA).  This is a US law designed to capture US companies that pay bribes to overseas officials.  News International is a US Company and very much subject to this law, which can lead to criminal convictions. 
• The recent resignation of Rebekah Brooks at the centre of the scandal now leaves exposed James Murdoch, Rupert's son who was also in the direct chain of command.

Talk about being blown off course.