A crisis is any event, or series of events, that threatens a severe negative impact on an organization's financial results brand, reputation, or relations with employees, customers, or suppliers. Research shows that, on average, a company can expect to face a crisis every 4-5 years. Crisis triggers range from accounting irregularities and product recalls to terrorism, workplace violence and natural disasters.

A crisis management program must be flexible enough to confront all potential hazards and minimize the possibility that incidents become crises — or if they do, prevent a crisis from consuming your company's reputation and resources.

The Right Approach

Crisis readiness doesn't just happen. Organizations need plans, personnel and processes to support a comprehensive, integrated and flexible program. It should include:

• Prevention — vulnerability analysis, business impact analysis and defense strategy as well as assessments of organizational capabilities and culture;
• Preparation — establishment of crisis management team, development of an integrated crisis plan, and development/staging of various exercises addressing topics such as business continuity planning, human impact services and computer security planning;
• Response — execution of plans for the CEO and all Management including crisis communications, business continuity and the management of human impacts;
• Recovery — business recovery, financial recovery, and human impact recovery; reviews include claims advisory, insurance recovery (claims accounting/preparation) and crisis counseling.

Marsh's Reputational Risk and Crisis Management Practice draws on the broadest range of experts in the field to successfully integrate our clients' crisis management program.

CONTACTS:

Tracy Knippenburg Gillis
Practice Leader, Crisis Management
New York, NY
212-345-3886

Related Information

Marsh Crisis Hotline: Companies that are in a crisis or are interested in developing or enhancing their crisis management plans can call Marsh at 1 877-24-MARSH. Marsh's crisis management specialists are available 24 hours a day, 365 days a year.

Vist Marsh's Emergency/Disaster Recovery Web site.

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