managing reputation risk in a crisis - atem · managing reputation risk in a crisis aicd atem risk...

Managing reputation risk in a crisis AICD ATEM Risk and Rewards conference, Sydney, 11 November 2016

›❯  “Our assets are our people, capital and reputation. If any of these is ever diminished, the last is the most difficult to restore.”

- from Goldman Sachs & Co’s prospectus, 1998

Communication objectives during a crisis

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§  Minimise unwanted publicity §  Set media agenda §  Obtain share of voice §  Correct misperceptions §  Provide an efficient flow of balanced information

Enhanced reputation with stakeholders

©2016 Financial & Corporate Relations

Essential actions during a crisis §  Quick response/communication; but first be sure of facts §  Nominate most senior executive as spokesperson §  Express empathy and concern for those affected

§  Never speculate or name casualties §  Take responsibility, without admitting blame §  Avoid blaming others

§  Communicate directly with all stakeholders §  Engage with media

§  Evaluate how the issue may develop and prepare for the worst §  Establish your communication strategy, but be prepared to change it as

circumstances change

§  Internet and mobile technology have led to faster coverage than ever before

§  Once perceptions have been established, they are more difficult to change

§  Fast engagement with media and approval of statements/messages are essential

§  If you set the media agenda, your reputation is less likely to be damaged

Speedy response is critical


Deepwater Horizon

The impact to reputation when media response goes wrong

“I think the environmental impact of this disaster is likely to be very, very modest” - Tony Hayward


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At last an apology – but a tactless one “Criminal charges looming for BP BP could be pursued through the criminal courts

over the devastating Gulf of Mexico oil disaster.”

“We’re sorry for the massive disruption it’s caused their lives.

There’s no one who wants this over more than I do.

I would like my life back.“

“If our laws were broken, leading to this death and destruction, my solemn pledge is that we will bring those responsible to justice on behalf of the victims of this catastrophe

and the people of the Gulf region.”


The damage from poor communication

“…this reaches beyond the titanic incompetence of BP’s public relations….

Companies that get into this kind of trouble with the public may be letting slip something about themselves, which they can normally keep hidden” The Guardian, London, 21 June 2010


The impact of good communication

“Through all this the Wallenius Wilhelmsen Line conducted a carefully nuanced response to Canberra. There was never a public brawl with the Howard Government, nor did the shipping line feed the electoral controversy that ensured. Though the red-hulled ship sitting off Christmas Island was the image of the elections of 2001, the Line kept insisting only issues of search and rescue were at stake. It was masterful.” David Marr, Sydney Morning Herald, 2002

“…this reaches beyond the titanic incompetence of BP’s public relations….

Companies that get into this kind of trouble with the public may be letting slip something about themselves, which they can normally keep hidden” The Guardian, London, 21 June 2010


Today’s media environment


Situa&on Consequences

Less print media Less opportuni&es to balance nega&ve coverage with posi&ve coverage in other media Coverage syndicated in other media

Less journalists Necessary to compete for journalists’/editors’ a@en&on

Journalists forced to cover more stories Less &me to check details

Many experienced journalists retrenched Necessary to educate journalists in industry dynamics/jargon

Growing use of online media Need for succinct messages; essen&al to be able to respond quickly

Growing use of social media Monitor and – if appropriate – be able to par&cipate quickly. Use Twi@er to demonstrate immediate concern

Increased input by ci?zen journalists Be aware of ‘eyes and ears’ everywhere

‘Click-‐bait’ methods used Increased focus on major incidents, drama&c pictures

Growth of email/SMS/TwiHer/Facebook Enables direct communica&on with stakeholders, control of messages and seMng the agenda

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The need to respond quickly


11:28: Asiana B777 crashes on landing at SFO

11:29: Google employee boarding another flight uploads the first photo on TwiHer

11:45: Survivor posts photo of the evacua?on on TwiHer, Path and Facebook

12:00: More than 44,000 tweets about the accident

12:08: First ‘tweet’ from Boeing 12:23: First ‘tweet’ from NTSB 12:30: More than 52,000 tweets about the

accident 12:39: First ‘tweet’ from Asiana

What is corporate reputation

Corporate brand or reputa?on

CORPORATE IDENTITY: name, logo,

typeface, colour scheme

PUBLIC IMAGE: impression the en&ty makes on

people PRIOR

PERCEPTIONS: appropriate

behaviour for this type of en&ty

The importance of non-verbal communication

§  Research shows the importance of body language

Stanford University UCLA

Body language, facial expression, appearance 45% 55%

Speaker’s pitch, volume and variation 20% 38%

Words 35% 7%

How you deliver your message is as important as the message itself. ‘The medium is the message’ (Marshall MacLuhan)


managing reputation risk in a crisis - atem · managing reputation risk in a crisis aicd atem risk...

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