USA Law and Practice Contributed by: Jeff McAndrews, Megan Bouchier and Peter Gardner, FGS Global
3. Corporate Crisis Management 3.1 Crisis Management Plans The Crisis Playbook Effective crisis management plans typically consist of two essential elements. The first is an overall crisis response protocol, which outlines a set of core principles, team member roles and responsibilities, and a clear structure for evaluat- ing, escalating and responding to potential cri- ses the organisation may face. The second is a set of sample scenarios – often the top five or six most likely to occur or most problematic/impact- ful issues – and specific guidelines for how to address them. This type of framework is the foundation for effective crisis management efforts and is the central document around which the crisis team organises and, if necessary, executes in real time. Key Components of a Crisis Strategy The crisis management plan should also take into consideration how stakeholders are man- aged during a crisis, including: • a stringent but flexible decision-making and approval process; • a holistic stakeholder strategy that can be adapted according to real-time insights into the most crucial internal and external audi- ences; • a solid understanding of the facts and a strong narrative, communicated by well-pre- pared spokespeople; • a shared commitment to rapid action during a crisis; • an effective system for consistently dissemi- nating information to key stakeholders as a crisis plays out and evolves; and
2.5 Transparency Requirements Publicly traded companies in the USA are required by the SEC to disclose material risk factors in their public filings, including in annual reports or through a Form 10-K, meaning they must identify and explain to investors the most significant events, risks or financial factors that could potentially affect their business, opera- tions and financial condition. As it relates to cybersecurity, for example, the SEC mandates that publicly traded companies must disclose “material” cybersecurity incidents on Form 8-K within four business days of discovering them, providing details on the nature, scope and Requirements vary industry-to-industry and cri- sis-to-crisis. Any organisation, particularly pub- licly traded companies or those in highly regu- lated industries, should work with legal experts and disclosure counsel to understand and pre- pare for the required disclosures or evaluations to which they may be subject. 2.7 Public-Private Co-Operation There is no applicable information in this juris- diction. 2.8 National Crisis Management Plan There is no applicable information in this juris- diction. 2.9 Inter-Agency Co-Operation There is no applicable information in this juris- diction. potential impact of the incident. 2.6 Sectorial Requirements
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