Crisis Communication: How to Prepare for a Storm and Protect Your Reputation

Imagine a situation where your company finds itself at the centre of an unexpected scandal. Perhaps a product has turned out to be dangerous, an employee has behaved unethically, or there has been a data breach. Regardless of the nature of the crisis, one thing is certain: the trust relationship with stakeholders is at risk, and so is the reputation of the entire organisation.

The frequency and scale of crises have increased. This is due to several reasons. Social activity has grown, and the media environment has changed. Stakeholders are more aware of their rights, and societal expectations towards organisations have risen. As a result of increased media coverage, crises now develop and spread faster — information travels quickly, making the escalation of crises more likely. Global pandemics, natural disasters, technological failures and even social media scandals can instantly derail a company’s operations.

Crises are inevitable in today’s business world. What happens, happens. The crucial part is how you respond in a crisis situation and how much attention is paid to communicating with your audience. Why is this critical?

What happens, happens. The crucial part is how you respond in a crisis situation and how much attention is paid to communicating with your audience.

Thoughtful communication, that is, interacting with your primary audience, makes crisis resolution efforts visible and understandable to them and reflects the efforts being made to resolve the crisis. In cases of accidents, it is essential to provide accurate instructions so that people can protect themselves or their property. Well-organised crisis communication can help a company protect its reputation, restore trust, and even emerge stronger from the crisis. Leaving key target groups, such as employees, customers, and partners, in the dark can worsen the situation, causing irreversible damage to the company’s reputation and financial results.

Where is the line between a crisis and a particularly challenging workday?

A crisis is an unexpected event or situation that threatens an organisation’s operations, reputation, or stakeholders. This could be a natural disaster, a workplace accident, a product failure, a cyberattack, a financial crisis, or even negative media coverage. Crises are characterised by their suddenness, rapid development and potentially significant impact.

While the potential effects of accidents are often clearer — such as significant financial loss, disrupted supply chains, or operational standstills — it can be harder to gauge the potential impact of so-called reputation crises in their early stages, even though their effects may be far more extensive. These can lead to employee strikes, a sharp change in market position due to brand damage, or even regulatory changes that significantly harm the company’s business objectives.

Preparation and being ready

A crisis cannot be predicted exactly. The best way to get ready for a crisis is to be prepared. This means developing a crisis management plan, forming a team, and conducting regular training and simulations. A crisis management plan should include clear roles and responsibilities, communication protocols, and messages to be used in crisis situations.

Being mentally prepared should not be considered less important than practical preparation. Crisis situations are stressful, and it’s crucial that the team remains calm and makes quick and effective decisions even under pressure. Regular training and simulations help the crisis team develop mental resilience — practicing necessary skills and maintaining confidence.

Regular training and simulations help the crisis team develop mental resilience — practicing necessary skills and maintaining confidence.

Rapid and transparent communication

The first 24 hours in a crisis are critical, and the initial response of the organisation can significantly influence the course of the crisis and its impact. Unfortunately, the main problem organisations and individuals face in crises is often indifference. Instead, the approach should be to take the initiative and act with the mindset that the consequences of the crisis could be severe for the organisation. Typically, organisations are not judged publicly based on the cause of the crisis but on their ability to respond.

The first step is to assess the extent of the crisis and gather the crisis team. The team should collect all available information, assess the situation and decide on further actions. It’s also important to inform all relevant stakeholders, including employees, customers, partners and the media.

Transparent communication is crucial during a crisis. The organisation must provide relevant information, even if not all facts are known. It is important to acknowledge the problem, express regret in proportion to the responsibility and explain what is being done to resolve the situation. Companies often initially deny or downplay their responsibility in a crisis, but lying always makes the situation worse and damages the reputation.

It is important to acknowledge the problem, express regret in proportion to the responsibility and explain what is being done to resolve the situation.

Crises cannot be prevented. Preparation is needed for the impact of the crisis—the loss of trust—and for regaining it. The ability to act and communicate with your audience in a crisis situation will determine whether, after the situation is resolved, the company can continue as before or if poor crisis communication management will haunt the organisation for a long time.