A review of 100 crises over the past 20 years, highlighting patterns that have emerged and their effects on businesses within a three-month window after the crisis becomes publicly known.

Key Points:

  • Categories of crises:
    • Accidents & Events; Cyber Security Breach; Financial Mismanagement; Individual Corruption; Market Collapse; Product Issues and Recalls; and, Media Driven Crises.
  • Impact of Crisis:
    • Crisis induced reputational damage can have significant, long-lasting impacts.
    • This part of the document can be used to better understand the impacts of a crisis in the following areas:
      • Existential damage; Share price; Media and Social media; A new (online) world.
  • The Blame Game:
    • Blame and the perception of culpability matters in a crisis.
    • This section examines the relationship between how much a portion of blame can impact business share price.
    • Also considered is the role the media can play in affecting levels of perceived culpability.
  • Saying Sorry:
    • This section examines whether a company should apologise in the event they are found culpable in a crisis.
    • A quick apology is better than a slow one in terms of share price value.
    • The financial case for making an apology also indicates making one, rather than not, is better by more than 2 to 1.
  • Final thoughts:
    • This report was designed to investigate the intuitions you may have about corporate crises. It confirms many pre-existing assumptions, but also provides insight as to how crises are responded to, these will help to sure up against newer, emergent crises.