Crisis Response: Protecting Your Reputation

This is a companion blog to the “The SafeHouse” podcast dated November 7, 2024, with host Jeff Edwards, Co-Chair of the SafeHouse Initiative and his guest Stephanie Craig, President, Kith.  View the podcast here: https://safehouseinitiative.org/the-nist-nccoe-the-hub-of-cybersecurity-collaboration/

 In today’s fast-paced digital world, the reputation of a business can be at risk from various crises, especially during cyber breaches. Understanding how to protect and manage that reputation is critical. In this discussion, Jeff Edwards, co-chair of the SafeHouse Initiative, speaks with Stephanie Craig, president of Kith, about the intricacies of crisis management and the importance of reputation protection.

Understanding Crisis Management

Stephanie Craig emphasizes the difference between crisis communications and crisis management. She states, “Crisis communications is critically important, but there is a larger approach to crisis that needs to be identified, and that is crisis management.” This broader approach encompasses preparation, mitigation, and response, focusing on maintaining reputation throughout the crisis.

The Value of Reputation

According to Craig, “the world economic forum has set a level of 25% of a company’s value as its reputation.” This statistic highlights the need for organizations to invest in protecting their reputation, just as they would protect other valuable assets. She notes, “You need to be trusted, and you need to be reliable.”

Preparation is Key

Craig likens crisis management to an iceberg, where “10% of what you see is the crisis and 90% of what it is the preparation.” She explains that organizations should conduct diagnostics to assess their readiness, focusing on key components that contribute to effective crisis management.

“Clarity and trust equal strategic speed,” Craig explains. These elements can be established before a crisis occurs, allowing organizations to respond quickly and effectively when challenges arise.

Building a Core Crisis Team

Having a core crisis team is essential. Craig mentions, “The middle of a crisis is not the time to figure out who has responsibility for what.” This team, consisting of decision-makers and subject matter experts, is responsible for executing the crisis management plan and communicating effectively during a crisis.

Collaboration Across Departments

It’s crucial to have collaboration between various departments, including communications and IT. Craig notes, “If there’s a cyber breach, who do you need to communicate with? That’s the purview of communication.” Understanding each department’s role helps streamline the response process and ensures that everyone is on the same page.

The Long Tail of Reputational Damage

Reputational damage can have long-term effects. Craig shares examples of companies like Equifax and Delta, which faced significant reputational challenges following crises. “The tail of these is very long,” she warns, underscoring the importance of building trust with stakeholders before a crisis occurs.

Kith’s Approach to Crisis Management

Kith operates under the philosophy of sharing information and building community. Craig explains, “We want to be generous with our intellectual property.” The company sends out a monthly “Crisis of the Month” newsletter to help clients think about potential scenarios and prepare accordingly.

A Practical First Step

For organizations looking to enhance their crisis preparedness, Craig suggests a simple yet effective first step: “At your staff meeting, hold up your phone with your industry publication and say, ‘What would we do if this happened to us?’” This exercise can initiate important conversations about crisis preparedness and reputation management.

Conclusion

In conclusion, managing a crisis is about more than just communication; it involves strategic planning, collaboration, and preparation. As Stephanie Craig aptly puts it, “You never know when you’re going to get to work with somebody,” highlighting the importance of building trust and clarity in advance. By investing in reputation protection and preparing for potential crises, organizations can safeguard their most valuable asset—their reputation.

For more information about the SafeHouse Initiative and to learn about ways to get involved, visit their website: https://safehouseinitiative.org/.