From fake “apologies” that spread like wildfire on social media (as was the case during the Astronomer CEO scandal) to companies facing backlash for using generative AI without safeguards, recent crises have shown how quickly brand reputations can unravel in the digital age. The rapid spread of misinformation online, combined with new risks tied to emerging technologies, has left organizations more vulnerable than ever.
Companies that are not ready to deal with a crisis are putting their brands, reputations, and future at risk. There are three warning signs that your workplace is unprepared for the next disaster, scandal, or other corporate emergency.
1. There’s No Crisis Management Plan
Unless a crisis management plan is in place, organizations will not know what to do when a crisis strikes, who will do it, how to do it, or why it should be done. For every minute a business delays in responding to a crisis, it will find itself in a defensive position and at a loss on the steps it should take to address the unfolding situation.
Just as bad as having no plan is having one that has not been updated to account for the latest risks that can threaten the organization. Take AI, for example. According to research conducted by Riskonnect, 65% of surveyed companies do not have a policy in place to govern the use of generative AI by partners and suppliers. The reckless use of AI can result in fraud, plagiarism, and violations of intellectual property laws, all of which can create the risk of litigation and a crisis for businesses.
The best and most effective plans should include these major categories:
- When and how the plan was prepared, updated, and tested
- The event or development that will trigger a crisis for the company
- Who has the authority to activate the plan
- What should be done and in what order to address the crisis
- What needs to be said about the situation, and who will say it
- Who should be told about the crisis, and how they should be notified
Depending on the nature of the risks that companies can face, it is prudent to create separate crisis management plans for each of the risks. That is because responding to the threat of a lawsuit will be vastly different than responding to the death of the CEO, for example.
The plans should be tested regularly to ensure they will work when needed. The plans can be evaluated through tabletop, field exercises, and computer simulations. Based on the results of the exercises, the plans should be updated and strengthened.
Information about the plans should be shared with corporate officials and employees so they know there are protocols and policies in place that should govern how the company will respond in case of a crisis.
2. A Crisis Management Team Has Not Been Appointed
Without a team in place to implement a crisis management plan, organizations will find themselves scrambling to figure out what to do and who will do it when a crisis strikes. The composition of teams will depend on the nature and size of organizations. For large companies, a team of five to seven people will usually suffice, and could include representatives from HR, IT, legal, marketing, public relations, and the board of directors.
The team should meet regularly to practice working together under deadlines and pressure, test the crisis management plan, and make necessary adjustments to the team and plan.
3. You Don’t Know What To Say When There’s A Crisis
Silence is not golden when a crisis strikes an organization. The longer that you remain quiet about a crisis, the more likely it is that others will fill the vacuum and take control of the narrative. At the very least, businesses should prepare appropriate generic statements that can be issued immediately and then customized and updated as necessary. For example, if a lawsuit is filed alleging sexual abuse by a top corporate executive, one example of an initial statement is that “We are aware that a lawsuit has been filed and will have more to say about it at a later date.”
But be careful about saying anything that could create a risk for litigation or liability in connection with the crisis. Consult with legal counsel to help minimize those risks.
A qualified individual should be appointed ahead of time who will serve as the public face of the company when a crisis strikes. The best spokesperson will have a background in public relations or journalism and will have gone through media training. If you don’t have anyone on staff to fill this important role, then consider retaining the services of a public relations firm or consultant who could serve as the public face of your company during this critical time.
When the plans and teams are activated, corporate officials should resist any temptation to micromanage or second-guess them. Team members will have their hands full dealing with the matters at hand, and any efforts to interfere with their responsibilities will make their work that much harder—and could extend or worsen the crisis.
After the crisis has passed, a report should be prepared on how well the plans were followed, how well the teams worked to manage the crisis, and any lessons learned that can be applied to improve the organization’s response to its next crisis.
