The cost of a crisis
Having blind faith that you can help your brands weather any type of crisis will cost you dearly in the long run. In this guest post Tony Jaques explains how you can crisis-proof a company to avoid financial fallout.
Crises cause a range of impacts – organisational, reputational, operational and political – but no crisis impact is typically so immediate as the financial fallout.
Jacques: consulting and managing director of Issue Outcomes P/L
Think no further than BHP Billiton which lost $8.9 billion of market value in a single day in May when the Brazilian government announced a mega-claim against the company arising from the Samarco dam collapse.
Or when Crown lost $1.3 billion of market value on one day in October when some of the casino company’s employees were arrested in China. Or think of the Costa Concordia disaster off the coast of Italy, where refloating and removing the sunken cruise ship took total costs to well over £1 billion.
