Risk Manager, PRO Allies in a Crisis

What is the working relationship between the corporate communicator and the risk manager in business continuity management? In my interaction with risk management professionals, I find them to be knowledgeable of the issues related to crisis communication planning. In fact, the basis of any business continuity plan rests largely on risk projections.

Many private-sector and state-run organizations did not see the COVID-19 pandemic in their crystal balls despite being forewarned by the outbreak and rapid movement of SARS across the globe early in the 21st Century. So, was the global unpreparedness for COVID-19 a failure of risk management? This underscores the critical role of the risk management professional as a member of the business continuity management (BCM) or crisis management team, although the C-Suite may be tempted at times to downplay the assessment and recommendations from the risk management unit because of cost implications.  

However, the risk management and corporate communication professionals are natural allies in developing BCM plans. The more knowledgeable and forewarned the BCM team is about the likely hazard to normal operations, the better prepared it is to prevent, minimize and mitigate the adverse impact or risk to the organization or business. Certainly, from the perspective of the communication team, foreknowledge of the likely hazards or risks helps to fashion the crisis communication plan, viz identifying which stakeholders are to receive information, in what priority and through what channel.

What is risk? 

 What is risk? ISO 31000 defines risk as the effect of uncertainty on objectives. These uncertainties can be related to supply chain delays, corporate governance, enterprise risk, regulatory non-compliance, environmental hazards, financial and credit risk, information and security breaches, as well as technology failure. Many of these of these, singly or combined, can cause reputational damage to an organization depending on the nature of its business.

In many instances uncertainties in a crisis can be remedied by an effective communication strategy in terms of timing, messaging, audience contact and using the appropriate channel. To underscore the point: a risk can be aggravated by how communication by the organization is (mis) handled. Communication strategy is a tool of risk management. If the risk is reputational damage, the communication response must be fast and factual. Delay in communicating with critical stakeholder groups (creditors, shareholders, regulators et al) could result in the demise of an organization. Communicators should avoid off-tone and insensitive responses. Poor communication can aggravate a risk or escalate a crisis.

Tips to identify risks

Where a small or medium sized organization does not have a risk manager in place, the communication professional can be guided by several rules of thumb in anticipating risks. Here are a few:

·         Lightning can strike the same place twice: anticipate the same disaster or crisis to recur and plan for it. This underscores the importance of recording the response to an incident or crisis and including it in the BCM training.

·         Industry origin: if a hazard disrupted your competitor’s operation in the past, it could also affect you in the future. So, plan for it and learn from your competitor’s experience through reports filed with regulators or information shared with industry/trade associations.

·         Conduct a SWOT analysis. At least annually an organization should assess its Strengths, Weaknesses, Opportunities and Threats. This process can highlight risks and threats to your business.

·         Of course, monitor disaster management forecasts/reports related to weather and environmental conditions, public health, supply chain, law enforcement, civil disturbance, among others.

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