A special guest post by Global Security Consultant and Political Risk Expert, Paul Crespo. This is the seventh post in the series.
Global companies today face a variety of serious risks that range from political disturbances, terrorist bombings, supply chain disruptions, natural disasters and cyber-attacks, to the kidnapping of key executives.
Any of these threats can create corporate crises that can seriously damage your company’s operations, reputation and even existence. Even worse are the threats we don’t foresee or predict – potentially catastrophic Black Swan events like 9/11.
Depending on the country where it occurs, a corporate crisis can also be severely compounded by language and cultural differences that will magnify the confusion and multiply the damage. How your company handles a crisis can make or break its future. So, what can your international company do to prepare for a crisis?
Below are 3 key steps to take before a crisis explodes:
1. Identify Threats & Vulnerabilities
- Risk Assessments are conducted to identify threats and vulnerabilities and the likelihood of an event arising from them. Think outside the box. Prepare for worst case scenarios. If your company is prepared for the worst, it will better handle lesser crises.
- Business Impact Analysis (BIA) is conducted to identify critical business functions in the company and their potential vulnerabilities to different crises. This will help create plans to maintain, or quickly recover, these critical functions during a crisis.
2. Develop Strategic Plans
Once risks, vulnerabilities and critical functions have been identified and prioritized, your company should develop strategies to mitigate the risks, and then make plans to face and manage a crisis. These plans should include:
- Crisis Management plan to provide specific guidance to respond to a given crisis. It should include forming a Crisis Management Team (CMT) directed by senior management and composed of representatives from key business areas, as well as procedures to follow before, and during a crisis.
- Crisis Communications plan to communicate promptly, accurately and confidently during an emergency and its aftermath. It should identify a primary crisis spokesperson and all audiences (internally and externally) needing to be reached with information specific to their needs.
- Business Continuity Plan (BCP) expands on the BIA and Crisis Management plan to help manage any business disruption caused by the crisis, and ensure critical business functions are maintained throughout.
3. Train, Test & Update
Plans and systems can only be assured if staff is properly trained, and plans are tested. Your company should therefore regularly conduct: