A crisis response plan sets out how an organization will respond, should a crisis arise. More than that, the plan should encompass measures for preventing, detecting, investigating, responding to, and recovering from crises. It should define what constitutes a crisis for a company, and who takes charge of crisis management. Pre-planning is essential as poor preparation can have economic, reputational, and legal repercussions for a business.
Creating an Effective Crisis Response Plan
Effective plans should address key considerations before, during and after the crisis, so a company does not have to deal with issues ad hoc. Pre-crisis planning focuses on prevention and preparation, while also setting out protocols for handling the situation when prevention fails. During the crisis, the focus should be on investigation and clear communication, while after the crisis steps will include assessing the company’s handling of events and ensuring that lessons are learned.
A crisis response plan should serve as a flexible reference guide for how to deal with a crisis, and should be regularly updated. It should serve to provide core details, such as contact information, parameters for when the plan should be activated, and documents such as template press releases.
The crisis response plan should address the typical phases of a crisis: the pre-crisis phase, responding to the crisis, and learning from the crisis.
Pre-Crisis -
Prevention and
Preparation
Pre-Crisis – Prevention and Preparation
Assess Vulnerabilities – conduct a comprehensive risk assessment and prepare a business continuity plan in order to identify risks and minimize disruption during through the crisis
Assemble a Crisis Response Team – designate senior management, compliance staff, legal counsel and PR advisors to roles on the response team
Create a Crisis Communications Plan and Team – select spokespersons appropriately trained to communicate clearly with the press
Establish a Media Monitoring Team – appoint individuals to monitor coverage of the company and the evolving crisis
Fund Crisis Response Efforts – ensure adequate funding for risk assessment exercises and third-party advice
Create Crisis Identification and Escalation Processes – train staff on risk awareness and promote a culture of reporting issues. Staff should also know how to obtain information during a crisis
Develop a Social Media Strategy – have clear policies on use of social media and develop pre-approved messages for senior management as the crisis unfolds
Identify Third-Party Advisors – identify the external advisors who would be on call in a crisis
Pre-Crisis – Prevention and Preparation
Assess Vulnerabilities – conduct a comprehensive risk assessment and prepare a business continuity plan in order to identify risks and minimize disruption during through the crisis
Assemble a Crisis Response Team – designate senior management, compliance staff, legal counsel and PR advisors to roles on the response team
Create a Crisis Communications Plan and Team – select spokespersons appropriately trained to communicate clearly with the press
Establish a Media Monitoring Team – appoint individuals to monitor coverage of the company and the evolving crisis
Fund Crisis Response Efforts – ensure adequate funding for risk assessment exercises and third-party advice
Create Crisis Identification and Escalation Processes – train staff on risk awareness and promote a culture of reporting issues. Staff should also know how to obtain information during a crisis
Develop a Social Media Strategy – have clear policies on use of social media and develop pre-approved messages for senior management as the crisis unfolds
Identify Third-Party Advisors – identify the external advisors who would be on call in a crisis
During the Crisis –
Responding to
the Crisis
During the Crisis – Responding to the Crisis
Understand the Extent of the Crisis – assess the severity of the crisis and the company’s involvement in it
Transparent Communications – communicate relevant information quickly, accurately and consistently with stakeholders, and provide regular updates
Issue a Statement – consider the merits of putting the company’s own narrative into the public domain, while also evaluating messages for additional risks
Press Engagement – consider dialogue with the media, putting forward the Crisis Response Team as a source of information on crisis evolution and handling
Review Feedback – review staff and stakeholder feedback on the company’s crisis response
Activate Internal Defense Mechanisms – bring in appropriate expertise to manage legal and regulatory risks and safeguard information
Reputational Repair - begin the process of mending the company’s reputation
During the Crisis – Responding to the Crisis
Understand the Extent of the Crisis – assess the severity of the crisis and the company’s involvement in it
Transparent Communications – communicate relevant information quickly, accurately and consistently with stakeholders, and provide regular updates
Issue a Statement – consider the merits of putting the company’s own narrative into the public domain, while also evaluating messages for additional risks
Press Engagement – consider dialogue with the media, putting forward the Crisis Response Team as a source of information on crisis evolution and handling
Review Feedback – review staff and stakeholder feedback on the company’s crisis response
Activate Internal Defense Mechanisms – bring in appropriate expertise to manage legal and regulatory risks and safeguard information
Reputational Repair - begin the process of mending the company’s reputation
During the Crisis –
Responding to
the Crisis
Post-Crisis – Learning from the Crisis
Establish a Post-Crisis Recovery Plan – define the measures needed to get the company back to normal operations
Identify the Root Cause – seek to understand what led to the crisis and assess whether it warrants deeper investigation
Review Company Response – compare the company’s crisis handling with examples of successful crisis management at other companies
Update the Plan - Discuss the risk assessment findings, review processes and update the company’s crisis response plan accordingly
Post-Crisis – Learning from the Crisis
Establish a Post-Crisis Recovery Plan – define the measures needed to get the company back to normal operations
Identify the Root Cause – seek to understand what led to the crisis and assess whether it warrants deeper investigation
Review Company Response – compare the company’s crisis handling with examples of successful crisis management at other companies
Update the Plan - Discuss the risk assessment findings, review processes and update the company’s crisis response plan accordingly
Jennifer Kennedy Park
Partner
New York
T: +1 212 225 2357
jkpark@cgsh.com
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James Norris-Jones
Partner
London
T: +44 20 7614 2336
jnorrisjones@cgsh.com
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Nowell D. Bamberger
Partner
Washington, D.C.
T: +1 202 974 1752
Hong Kong
T: +852 2532 3785
nbamberger@cgsh.com
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