The idea of having to deal with a crisis situation that could affect your reputation may be a daunting prospect for most business owners but, if you have an experienced Crisis Communications team in place, it certainly doesn’t have to be. Digital marketing agency Digital Ethos provides a few reasons why businesses should have a crisis communication plan in place.
Hannah Blencowe, PR Executive at Digital Ethos, says: “Crisis communications is defined as ‘the process by which an organisation manages communications regarding a major incident, allegation or perception that can seriously threaten its reputation and has the potential to negatively influence its stakeholders.’ Whilst it’s easy to think that your business is unlikely to need to respond to a crisis, it’s important to remember that there are no limits as to what can happen and media interest in an incident can be unpredictable. Some examples of a potential crisis to deal with include data breaches, customer complaints, or serious workplace misconduct.
“Here are a few ways that a crisis communication plan can help your brand should a situation occur.”
Maintaining your company image
By proactively having a plan in place in the event of a crisis, brands can be equipped to handle any unexpected situations. This plan should include any potential risks of a crisis, fleshed-out response protocols, and training for any relevant staff members. In the event of an emergency, it is best practice to have more than one staff member trained in crisis management to ensure that if someone is on annual leave, the situation can still be mitigated quickly and effectively.
An effective crisis management strategy is also key to maintaining and attracting stakeholders as it demonstrates competence, professionalism and the ability to not panic under pressure.
Preserve employee morale
Being employed by a company that is in the throes of a public crisis can be overwhelming and deeply concerning for employees. By having a crisis management plan in place, brands can provide clear guidance, support, and reassurance to employees which helps to minimise the impact of a crisis on employees. Open and transparent communication is vital during a crisis. Keeping employees informed about the situation, the steps being taken to address it, and any potential impact on the organisation helps reduce uncertainty and anxiety. Regular updates and clear messaging demonstrate that the brand values its employees and their well-being.
Minimising financial losses
Unfortunately, a major crisis usually comes hand-in-hand with financial losses, either as a direct result of resolving a crisis, a decline in sales or loss of customers. A comprehensive crisis management plan will help to minimise financial loss as much as possible in the form of a business continuity strategy. This involves identifying critical business functions, developing backup plans, and establishing alternative operational processes. By ensuring that key operations can continue during a crisis, brands can reduce the disruption and financial impact on its revenue streams.
All in all, crisis management plans facilitate post-crisis evaluation and improvement, enabling brands to learn from the experience and enhance their resilience for future crises. Ultimately, having a crisis management plan in place is a proactive measure that helps brands preserve their image, minimise disruption, and safeguard long-term success.
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