How to protect your company in the event of a crisis

At some point, every business has a crisis to deal with

69% of business leaders reported experiencing at least one communication crisis in five years, while the average number of image crises per company was three in the same time frame, according to a recent PwC survey of 73 countries and 29 industries.

The more complex the business and the greater the number of stakeholders involved, the higher the risks become. As an example, a Romanian airline company recently struggled with financial issues and operational difficulties, affecting tens of thousands of customers. The company's poor and delayed communication further worsened the situation for consumers.

Crises can have a profound impact on an organization, threatening its operations and damaging its reputation. The consequences of a crisis can be financial loss and harm to the company's image, potentially leading to the discontinuation of operations. Effective crisis management is crucial in preventing such outcomes.

The pillars of crisis prevention, management and communications can protect your business

Crisis management is an approach to handling unforeseen events that pose a significant threat to an organization's operations or reputation. The goal is to minimize the negative impact of the crisis in the short, medium and long term.

The process involves developing a contingency plan that includes gathering information, creating clear communication steps and aligning with stakeholders prior to any internal or external communication.

To be prepared for a crisis, companies can seek the help of specialists to conduct an audit, create a crisis manual, and regularly conduct crisis simulations. A well-planned crisis management strategy helps organizations control and navigate through various situations that may arise during their operations.

The process of crisis management is typically divided into three phases: pre-crisis, crisis response and post-crisis.

During the pre-crisis phase, organizations take proactive steps to identify potential risks, establish a crisis management team, develop a crisis plan and manual, train employees, and implement crisis-related policies in day-to-day operations.

In the crisis response phase, the crisis team puts their training into action and manages the crisis as effectively as possible. Clear and transparent communication is crucial during this phase, with all communication channels utilized to reach all stakeholders.

In the post-crisis phase, the focus shifts to repairing the organization's reputation and rebuilding its image. This can be done by providing updates on the cause of the crisis and recovery attempts, as well as analyzing the effectiveness of the crisis management process to optimize it for future crises.

How to manage a crisis in the pre-crisis phase

The first step in developing a crisis management plan is to assess the vulnerabilities of the organization. Based on potential scenarios, response strategies can be created to respond effectively to each situation.

The next step is to establish a crisis response team, which includes both internal and external personnel such as department managers, executives, communication specialists, and crisis communication experts. Choosing the right spokesperson to represent the company publicly during a crisis is critical for maintaining the company's image and reputation.

To ensure a prompt response in case of a crisis, it's essential to have pre-prepared key messages and a set of potential questions and answers that have been agreed upon by management. The team must also have a clear understanding of all communication channels and the individuals responsible for each channel to disseminate information quickly and efficiently.

Moreover, a database of media, NGOs, and other external stakeholders must be created and regularly updated. Regular crisis simulations with experts in the field can also help the crisis response team better prepare for a real-life crisis and understand the emotions involved.

How to manage a crisis in the crisis response phase

A poorly managed incident can turn into a poorly managed emergency, which in turn can turn into a crisis.

So these are the stages of a crisis: INCIDENT -> EMERGENCY -> CRISIS.

The importance of timely and effective communication in a crisis cannot be overstated. A crisis can arise suddenly, such as a natural disaster or fire, or it may be foreshadowed by warning signs, such as a fragile financial situation, legal charges, or customer complaints.

When facing a situation with potential warning signs, the crisis team has more time to adapt the plan in the crisis manual to the situation. Quick response is crucial to control the narrative of events and be the first to provide information internally and then externally about the chronology of events, the status of any potential victims, and the consequences.

Failure to communicate quickly and accurately can result in negative information about the company being disseminated by unauthorized sources and distorted through social media and digitalization, making the effects of misinformation difficult to manage.

Once again, we highlight that an effective communication plan is the most powerful tool to manage any crisis situation.

How to manage a crisis in the post-crisis phase

After a crisis, it's important to conduct a review of how the organization handled the situation. This review provides insight into the strengths and weaknesses in the organization, both in terms of the root cause and in terms of communication. If any shortcomings in the communication plan are identified, steps can be taken to optimize the strategy for future events, such as providing media training to employees or revising the entire communication plan.

In the midst of busy work schedules, it can be tempting to push projects that are not immediate to a later date. However, this approach can lead to major problems in the event of a crisis.

Having a crisis management plan in place before an emergency occurs is crucial for an effective response.

Hiring a PR consultancy with experts who specialise in crisis preparation, response, and management may be the best solution for a company.

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Lighthouse PR, based in Bucharest, and its management team sit on the EU SME Development board and the CMO Council. It is also a valued member of the prestigious Crisis Communication Network Europe.  It is the only member in Romania and SEE, with network offices in 14 countries across the EU.