This document discusses managing reputational risk and crisis communications. It outlines the value of reputation to businesses and examples where companies lost market value due to reputation issues. It then provides guidance on developing a crisis communications strategy including auditing existing procedures, creating communications plans and key messages, and training spokespeople to handle media interviews. The document also covers best practices for using social media during a crisis and concludes with contact information for media training and communications consultancy services.

2. KRisk.co
The Institute of Risk Management
Managing Reputational Risk
3rd March 2015
Ann Wright, Rough House Media
www.roughhousemedia.co.uk

3. KRisk.co

4. KRisk.co
o The value of your reputation to your business
o What to do if criticism went viral
o How to cope if you were besieged by the media
o How your chief executive would handle an aggressive interviewer
o When your company last assessed how it manages crisis communications
Crisis Communications: factors to consider

6. o Released 6th July 2009
o 14.6 million views
o $180,000,000 drop in share price
o Now part of United Airlines customer service training
o Musician Dave Caroll has a career in crisis management
United Airlines, United Breaks Guitars

7. KRisk.co

8. 63% of a company’s market value is down to reputation
(Safeguarding Reputation 2013 Weber Shandwick)
The value of reputation
o Poor sales
o Diminished influence
o Ridicule
o Job losses
o Failure & Closure

9. KRisk.co
o The Tesco horsemeat scandal wiped £30m off its market value
o $24billion wiped off Google’s value in eight minutes when news leaked of a
drop in profits
o $2.2billion fall in market value of Goldman Sachs after a NY Times piece
questioned the CEOs moral fibre
The value of reputation: examples

10. KRisk.co

11. KRisk.co
How a crisis escalates

12. KRisk.co
o Divide into two groups
o You are the senior management of Excel Helicopter Charters
o Please assign roles: CEO, risk manager, head of comms, head of
customer service, head of health and safety
o Discuss the potential risks to Excel business
Exercise 1:

13. KRisk.co
1. Establish the facts
2. Know your key audiences & what they need to hear
3. Use different communications channels
4. Deliver key messages
5. Communicate frequently
6. CAC – Care, Action, Context
In a crisis:

14. KRisk.co
Successful companies
Identify what
might go
wrong in
advance
Have
procedures
to contain
difficult
situations
Have
prepared
key
messages
Have trained
personnel
to handle
the media

15. Crisis comms interviews

16. KRisk.co
Stage one:
1. Audit existing emergency & crisis communications procedures
2. Brainstorm the issues specific to your business
3. Group risks into key categories
4. Prioritise the most damaging
5. Create communications action plans for these
Crisis communications strategy

17. KRisk.co
1. Create clear procedures, areas of responsibility & chain of command
2. Refine current media and social media policies
3. Develop a communications manual for all staff
Crisis communications strategy Stage two:

18. KRisk.co
1. Devise your key messages & holding statements
2. Understand how to handle the demands of the media
3. Undergo rigorous practice interviews & consider other
training programmes, such as crisis simulation
Crisis communications strategy Stage three:

19. KRisk.co
Essentials
1. A clear chain of command
2. Clear areas of responsibility & lines of communication
3. Prepared key messages & holding statements
4. Readily accessible contact details
5. Access to additional phone lines & PR support

20. KRisk.co

21. KRisk.co
Exercise 2
A helicopter taking private clients
to the British Grand Prix has crashed
at Silverstone race course.
There is no indication of the cause.
Pilot killed. Two passengers critical.
Lewis Hamilton injured
What do you need to consider?
What are your first actions?

22. Crisis comms interviews: how to do it

23. KRisk.co
Going viral
o Free
o Open access
o Instantaneous
o Impossible to control
o Forum for complaints: 32% people who complain via social media expect
a response in 30 minutes (The Social Habit, 2012 Edison Research)
o In 2012, 60% of CEOs thought they could respond to a negative post or
arficle in 24 hours

24. KRisk.co
o Vital communications channel
o Conveys information widely
o Immediate
o Under your control
The benefits of social media in a crisis

25. KRisk.co
Monitor &
respond
Update
regularly
Stay
constructive
& factual
Quash
speculation
Be accurate
& approved
Co-ordinate
website &
social media
Using social media in a crisis

26. Saving your reputation: Greggs 1

27. Saving your reputation: Greggs 2

28. Exercise 3:
o Rumours are circulating on social media that the helicopter pilot
had a drink problem
o Discuss the implications for Excel Helicopters
o Devise a holding statement for release to the media
o Decide how to release it

29. KRisk.co
1. Hungry for information
2. Publish speculation
3. Instantaneous
4. Like “victims”
5. Look for new angles
Rules of engagement with the media

30. Exercise 4:
o The media are besieging Excel Helicopters HQ in Farnborough
o You have decided to do an interview on Radio Five Live
o Devise a holding statement & key messages for the media
o Decide who is the most appropriate interviewee
o They will then be interviewed

32. KRisk.co
o Have a robust crisis communications policy
o Have an integrated social media policy
o Prepare key messages in advance
o Monitor what is being said about you
o React quickly, factually, pro-actively & frequently
o Have trained key spokespeople in advance
Smart companies

33. KRisk.co
Rough House Media
Training
Media training
Crisis comms
Presentation skills
Media master-
classes
Press releases
Consultancy
Crisis strategy
PR strategy
Message
development
Media relations
Social media
Production
Videos
Podcasts
Blogging
Article writing
020 8332 6200
info@roughhouse.co.uk
roughhousemedia.co.uk
twitter.co.uk/roughhouse01
Contact us