Do You Have a Strong Risk and Crisis Management Plan?
We live in uncertain times with risk a part of daily operations for many businesses. Whether natural or man-made – such as cyber attacks, financial crime, technological threats, supply chain failure and reputation damaging fraud – the way a business leaders react to a crisis is critical to its survival. Poorly managed crisis incidents are the subject of much criticism by the media and consumers. These risks and consequences to your company’s brand can be mitigated and, in some cases, prevented with a strong risk and crisis management plan.
According to Deloitte there’s a “vulnerability gap” between awareness of threats and actual preparation. 76% of board members say their organisations would respond effectively if a crisis struck tomorrow. But only 32% percent say their organisations engage in crisis simulations or training. “It’s common to think of crisis in dramatic terms: natural disasters, people led away in handcuffs, the glare of media lights,” reports Deloitte. “For any organisation, crisis is a matter of ‘when,’ not if.’ And the larger and more global the company, the greater the exposure to risk.”
A crisis can mean many different scenarios
The top two crisis areas that make business leaders feel the most vulnerable are corporate reputation (73%) and cyber crime (70%), according to Deloitte. Traditional crisis planning shouldn’t focus only an emergency response plan without giving equal attention to crisis communications (for internal as well as external audiences), business continuity and IT plans.
Start with risk assessment
Experts agree that the outcome of a crisis is usually determined in the months and years before a crisis occurs. HR is uniquely positioned to identify key stakeholders early to assess the most likely risks, particularly as they pertain to employees, and begin mitigation strategies wherever possible.
For example, a business that knows it stores hazardous materials can track and aggressively react to incidents that might foreshadow disaster, and use that information to predict the most likely causes of mishaps. Such an assessment gains even more power from consensus when you identify key leaders to be your partner in identifying and addressing these risks. The work done may build cohesion that can carry over to your risk and crisis management team should the need arise.
4 types of plans for risk and crisis management
HR leaders should be integral to developing risk assessments, risk mitigation and comprehensive crisis planning. Internally, there are often multiple stakeholders with discrete responsibilities connected to crisis and crisis communication planning. Make sure your crisis plan lays out the following:
- Crisis communication planning — sustaining communications with employees over time
- Business continuity planning — keeping customer service lines open
- Business continuity planning — preserving the decision matrix should decision-makers within the organisation be incapacitated or cut off from communication
- IT planning — planning what could happen to the integrity and security of organisational data
HR leaders play a strategic role in ensuring the safety of their employees and helping the business can operate to its best ability even when under crisis conditions.
A different kind of drill
As the definition of a risk and crisis management plan evolves within your organisation, the opportunities for training are many. Local law enforcement and related institutions could be happy to assist in developing situations and drilling. These professionals know that training a few times in advance can make the difference between triumph and disaster when a crisis strikes.
Planning should not stop at the point where the crisis ends. Employees will need to return to work and may need ongoing help if they lost loved ones or have been deprived of shelter or other basic resources. You’ll need to transition back to normal operations. There may be new needs or intense project work to restore lost business resources. HR leaders can play an essential role in developing a recovery plan that wisely prioritises between conflicting needs as the situation normalises.
Original post at ADP Spark.