Wojtek Dabrowski’s Post

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Managing Partner, Sovereign Advisory Inc.

Real question I received from a senior leader of a large Canadian enterprise this week: “Does having a crisis communications plan actually matter in a crisis?” It made me smile - crisis communications has been the bread and butter of my career. But I didn’t want to be flippant. So I decided I’d do a bit of research for him. Companies, especially large ones with big risk management departments, intellectually grasp the need for preparedness. After all, it’s just a matter of time before something somewhere in your business goes bad enough to cause a crisis. But what about quantitative proof? Turns out there is a significant amount of data that can show you whether it’s worthwhile or not to get a plan in place and, importantly, to test that plan from time to time. Here’s a few key stats: Firms with crisis management plans see 50% lower financial losses from a crisis compared to those without (Deloitte Crisis Management Survey 2022). Companies that manage crises effectively see their stock prices recover 20% faster than those that do not (Oxford Metrica, 2022). Organizations with crisis communications plans resolve crises 40% faster than those without (PwC Global Crisis Survey 2023). 60% of customers are more loyal to a brand that effectively communicates during a crisis (KPMG Global CEO Outlook 2022). Companies without crisis management plans can incur costs up to 4 times higher than those with plans in place (BCG Crisis Management Report 2023). 65% of stakeholders are more confident in a company's leadership if it has a robust crisis communications strategy (Accenture 2022). To me the verdict is and has always been simple: Fail to prepare, prepare to fail.

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