Managing Reputational Risks: A Crisis Manager’s Essential Role

1. Reputation … A Risk Manager’s Role

2. Bruce T. Blythe, Chairman • Crisis Management International • Crisis Care Network • Behavioral Medical Interventions • 404-841-3402 • bblythe@cmiatl.com • Darius Delon, AVP Risk Services • Mount Royal University • ddelon@hotmail.com

3. What to Expect • Protection of Crisis-Related Reputational Risks: • Protecting Company Reputation as a Function of Risk Management • Protecting your Personal Reputation During Crises • Take-and-Use Components of A Risk Manager’s Reputation Management

4. “What if Your Plans Don’t Work as Expected?”

5. Reputation • The set of . . . • Perceptions, • Evaluations, and • Beliefs . . . a community forms about an organization or one of its members

6. Senior Management Concerns • 4 Cornerstones of ERM • Reputation Risk • Finance Risk • Operation Risk (People/Process) • Hazard Risk

7. 2 Stakeholder Expectations • Post-crisis Expectations • Preventive Actions • Take adequate preventive measures? • Prepared to Respond • Respond in timely, caring, effective manner? • If not = Outrage

8. “Reputation” Red Flags • Outrage • Fear • Media Involvement • Perceived to be at fault: • Foreseeable • Unprepared • Unjust • Intentional • Negligent

9. Potential Stakeholders • Employees/ Families • Contractors/ Business Partners • Facility/ Site Managers • Staff Managers (HR, IT, etc.) • Senior Managers/Board of Directors • Institutional investors/ Shareholders • Insurance representatives • Suppliers/ Distributors • Customers • Government regulators/ politicians • Competitors • Media representatives • Union • Communities • Internet (users/ bloggers) • Industry activist groups 9

10. Anticipate • Identify Weaknesses in Your Preparedness -------------------------------- • Early Incident/Crisis Recording and Reporting • Crisis Response Plan • Crisis Communication Plan • Crisis Operations Center

11. Reputation Response Mindset Focus on “CIA” • Core Assets • Protection • Impacted Stakeholders • Identify and address needs and concerns • Anticipation • Likely progression

12. 9 Reputation Response Strategies • Deny Crisis • Minimize/No Harm Done • Ignorance • Lack of Information • Explanation • Reasonable Person Test Anticipate Reactions to Each

13. 9 Reputation Response Strategies • Locus of Control • No control over events leading to crisis • Blame Others • Identify Scapegoat • Attack Accusers • Motives/Shortcomings Anticipate Reactions to Each

14. 9 Reputation Response Strategies • Honorable Intent • Meant to do well • No Harmful Intent • Accident • Past Positives • Previous good works Anticipate Reactions to Each

15. Diermeier Trust Quadrant Empathy Commitment Transparency Expertise • Empathy • Reaching out to victims with warmth and authenticity • Expertise • We know what we’re doing • Our experts will fix it • Commitment • Senior management shows up and takes charge • Transparency • What you know, don’t know, when follow up

16. Reputation Institute • Emotional Appeal • Financial Performance • Products and Services • Vision and Leadership • Social Responsibility • Workplace Environment Best 9/11 response companies = highest reputation

17. Bruce T. Blythe, Chairman • Crisis Management International • Crisis Care Network • Behavioral Medical Interventions • 404-841-3402 • bblythe@cmiatl.com • Darius Delon, AVP Risk Services • Mount Royal University • ddelon@hotmail.com