When I talk to CEOs about crisis management, I like to start by asking the same two questions:
“Have you faced a crisis? How did you handle it?”
The responses are telling.
Most CEOs recount situations where a crisis occurred completely unexpectedly, and they were forced into reaction mode. With the clarity of hindsight, they can acknowledge that the proper preparation could have helped them manage the situation more effectively.
As the conversation continues, it becomes clear that the issue isn’t a lack of awareness about crises. On the contrary, CEOs are acutely aware of the potential for crises and even have specific scenarios that keep them up at night.
Here’s a look at the top crisis concerns among CEOs and my advice for taking a proactive rather than reactive approach.
6 Top Crisis Concerns
1. Data breaches
I have to put data breaches at the top of this list because protecting their data is by far the biggest concern among most of the CEOs I meet.
According to the Identity Theft Resource Center, there were over 1 billion data breach victims in the first half of 2024, representing a 490% increase from the same period in 2023. The issue is so common that it’s not a matter of if it will happen but when. And as the schemes become more sophisticated, even the most tech-savvy professionals can fall victim.
2. Losing top clients
Another significant fear is the potential loss of a top client—especially when that client represents a substantial portion of the business. I have heard from many executives that they had no warning when one of their clients/customers decided to “move in a new direction.” This is particularly harmful when said client represents 50% of a company’s business or more.
While this type of crisis does not often attract media attention, its impact hits hard and can potentially derail the company and jeopardize its future.
3. Disgruntled employees
We’ve all seen stories about rogue or disgruntled employees retaliating against an organization. Whether it’s ranting on social media, staging a protest outside the company, or—in the most extreme cases—committing an act of violence, these actions can have serious consequences for all involved.
CEOs I speak with cite smear campaigns as a particular area of concern. In a time when online backlash can lead to significant reputational damage, a viral social media post can potentially end careers, regardless of its accuracy.
4. Shutdowns and recalls
Product recalls, shutdowns due to regulatory compliance failures, and similar issues can have repercussions ranging from financial losses to tarnished reputations. No company wants to be known as the one whose product or operations were deemed unfit, no matter the reason.
5. Weather-related threats
Weather-related threats are always on the radar (pun intended) as climate disasters and their associated costs increase. Floods, fires, hurricanes, tornadoes, and other severe weather events can knock out all communication channels at a moment’s notice, leaving companies unable to reach customers (and vice versa).
6. Financial malfeasance
The threat of financial malfeasance looms large, particularly in organizations where many employees can access company assets. Incidents of theft or embezzlement can be devastating, causing economic losses and signaling a serious breach of trust within the organization. These acts are often committed by employees facing personal difficulties and must be handled delicately.
How to Mitigate the Impact of a Crisis
You can’t always stop a crisis from happening, but you can mitigate its impact. By being proactive, you’ll be better equipped to handle an unfortunate situation and protect what you’ve worked hard to build. Here’s how to get started:
Establish a crisis response team.
One of the top crisis management rules of thumb is: don’t go it alone. Think intentionally about who you want in your corner, and curate a crisis response team well before a crisis strikes. Team sizes can range from a few people to a dozen or more. Who you include on your team will vary depending on factors unique to your organization. But be sure to include a communications professional to help with messaging and legal counsel to advise on the risks and ramifications of your actions (or inactions).
Schedule a brainstorming session.
Once you’ve assembled your team, schedule a brainstorming session to do a deeper dive into the risks and vulnerabilities that are most pertinent to your organization.
Develop a crisis management plan.
This step can be uncomfortable, but its importance cannot be overstated. Imagine how the potential crises you’ve identified would unfold. Ask “what if” questions with the goal of determining the worst-case scenario. Then, devise a plan for how you would manage through that scenario.
Think through how you would message to different groups of people, including employees, customers, and the general public. Remember that effective communication during a crisis is the single most important tactic to ensure that your company successfully emerges.
Run guided crisis drills.
One way to level up crisis management is with guided crisis drills. By simulating critical scenarios, companies strengthen their crisis response skills, improving their ability to navigate worst-case situations wisely and effectively.
When I run a crisis drill with a client, I create a crisis simulation individualized to their risk profile, discuss the key considerations, walk through various response scenarios, and help my client craft or edit strategic messaging.
Rest easier at night knowing you’re prepared for whatever comes your way. Contact me today to learn more about Goodwin Consulting’s crisis management services!
