Miami, FL. July, 2021: Corporate crisis management firms point out that in the last decade, corporates are increasingly facing crisis events that can range from product recalls, employee injury, environmental damage to data breaches. Corporates across most industries, according to a McKinsey report, have had casualties. The U.S. FDA sent out 15,000 warning letters in 2016 while the auto industry had to recall over 53 million vehicles in the same year.

Without a strong crisis management plan in place, these unpredictable and disruptive events can go on to harm your company's reputation, impact stakeholders and result in expensive lawsuits and penalties.

A case in point

In 2018, a whistleblower revealed that Cambridge Analytica, a British firm had bought 87 million users' data from Facebook without their consent. The company built voter profiles using the data that were said to have been leveraged in election campaigns.

By allowing Cambridge to collect the personal data of its users, Facebook had violated consumer trust and its own policies that mandated deleting of user data. Crisis management firms point out that while the CEO of Facebook acknowledged the mistakes in a statement, the response was delayed, inadequate, and underwhelming. While Facebook placed newspaper ads and changed its data handling practices, the consumer trust in the social media platform remained damaged. Corporate crisis management experts said that Facebook’s responses not only came too late but its apology rang hollow.

Poor crisis management not only resulted in the loss of user confidence but in hefty fines. The Federal Trade Commission levied a $5 billion fine on Facebook while the Securities and Exchange Commission (SEC) imposed a $100 million fine. The drop in user engagement also affected Facebook's ad revenue following the scandal.

Preparing a crisis mitigation plan

Crisis management is all about expecting the unexpected. It involves anticipating and planning for, handling, and recovering from all kinds of crises that a corporate can face. The aim of corporate crisis management is to safeguard the corporate to the maximum possible extent while mitigating public harm.

Instead of reacting when the crisis occurs, crisis management firms can help you with proactive planning enabling your business to respond effectively.

It is important to ensure crisis management is optimized across the three phases of:

- Pre-crisis stage - identification of all possible crises and preparing an action plan for each of them.
- Response during the crisis - with the use of the right PR platforms
- Post-crisis management -:following up on commitments and finding better ways to respond to the next potential crisis.

It is critical to plan what your company will do when an unforeseen crisis occurs. While the goal is to protect your business, the crisis management plans need to have specific goals including

- providing guidance and leadership when a crisis occurs
- appointing a crisis management team
- demonstrating your company’s competence
- managing your resources
- providing reassurance to key stakeholders

About The Principal Post

A vital part of the corporate crisis management plan is to ensure the flow of communication to all your stakeholders - including the media, customers, shareholders, government regulators. The best way to curb the damage caused by speculation, rumor mills, and misinformation is to work with an experienced crisis management firm. Managing your reputation is seamless on The Principal Post, a self-publication platform that reviews your narratives before it is published.

For More Information :- https://www.principalpost.com/