Denialism in life equals burying your head in the sand—mentally rejecting negative scenarios, refusing to consider the worst‐case outcomes, and neglecting to prepare for them.
Denialism is, unfortunately, a common cause of reputational and business crises in enterprises. Refusing to acknowledge reality undermines effective crisis management and communications.
For example, consider a company that maintains databases but is unprepared for a cyberattack. When a breach occurs, and the media and other stakeholders spotlight the enterprise, the organization has to launch reactive damage control and recovery. Usually, communications and top management scramble to present a coherent external narrative.
In haste, response often fails.
Failure can result in significant business losses—and, yes, destruction.
Preparation Pays Off
Yet, proactive preparedness is simple and effective. Ninety-five per cent of crisis communications situations are foreseeable. They are relatively easy to address in advance with well-prepared messaging.
When prepared, management need not improvise when a crisis strikes. Both external and internal communications proceed as a routine, freeing up resources to address the underlying issues.
I have repeatedly seen success converting into stakeholder satisfaction, business continuity, and reduced burden on key personnel.
Crisis readiness is a critical part of reputation management. Preparedness pays off as a good reputation usually converts into increased revenue.
During a Crisis, the Process Matters
As a crisis hits, coordinated action is key. For example, in a cyber crisis, different parts of the organization must work in a controlled, collaborative manner outside silos.
IT's role is to manage the investigation of the crisis's causes and implement corrective technical measures. The legal is to ascertain the contractual implications of the situation and ensure appropriate dialogue with authorities.
As the guardians of reputation, business leadership and communications should work and engage with other key stakeholders.
When customers, media, investors, and politicians perceive that the company is handling the crisis skillfully, they are more inclined to continue commercial transactions and dialogue with the organization. Success in crisis handling secures business continuity and reinforces the conditions for growth.
The crisis communications process must be planned, roles defined, and rehearsed in advance. Resource investment is always minimal compared to the benefits that materialize when crisis management prevents business loss.
As the saying goes, "Well planned is half done." The principle applies to cyber and other crises alike.
Preparedness is not rocket science
General Electric's former CEO, Jack Welch, urged companies to change "before you have to." Finnish president J. K. Paasikivi reminded us that "acknowledging reality is the beginning of all wisdom." Already in the Middle Ages, it was fact generally acknowledged that "praemonitus, praemunitus" (Latin for "forewarned is forearmed").
My observations from countless encounters with multinational enterprises and domestic growth companies confirm that destructive denialism is a burden from which, fortunately, one can break free.
I would not be writing this blog if issues management and crisis communications were not part of our service offering. Acclaimed cyber crisis simulations are a pronounced part of our offering. Please get in touch if you want to learn more about them – or any of our crisis mitigation services.
You're, of course, welcome to visit our office in Eteläranta for a talk, too. I’m confident we'll find a way forward together.
