BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá, Bermudes Advogados
• Objective identification of the first immediate steps to be taken once a crisis arises, includ- ing: (a) who to engage internally and through which channels; (b) informing management/executive direc- tors; and (c) how to convene the crisis committee members, and where, etc. • The roles, mandates and members of the crisis committee. • Nomination of “public face” of the company for the crisis, which is usually not the com- pany’s CEO/manager. • Immediate communication with relevant governmental authorities (appropriate to their different roles/regulatory powers or concur- ring competences), by whom and through which channels. • Proper communication with the public and other stakeholders, with a transparent and consistent response on all fronts. • Engagement of external consultants to help structure and co-ordinate an immedi- ate response, assuring consistency in the response and that records are kept from day one. • Depending on the origin and nature of the crisis, engagement of external consultants to initiate internal investigations. 3.2 Internal Governance Having a specific corporate structure in place to co-ordinate crisis response efforts within the company is essential for successful crisis man- agement. The multifaceted nature of a crisis demands that individuals from different areas of the company collaborate for a proper evalua- tion of each problem and the best solution, and co-ordination of the company’s efforts on one single structure is key for an adequate and con- sistent response. Because of the complexity of
crisis response and the multiple demands aris- ing therefrom, these demands will need to be the primary concern of the employees/execu- tives involved. Formally appointing them to the crisis committee ensures that such priorities are respected, including by their superiors within the company. 3.3 Crisis Committees: Composition and Attributes Convening the Crisis Committee The crisis committee should be formed in the event of a significant crisis that demands its operation, and although such significance will vary from company to company and depend- ing on the circumstances, the internal crisis response protocols can (and should) establish some thresholds and triggers for the identifica- tion of the need to engage the committee. Composition of the Crisis Committee A crisis committee is comprised mostly of inter- nal employees/executives of the company, but may also include a few external consultants, usually from: • management consulting firms (to help with business continuity/restructuring matters); • law firms with expertise in crisis response; and • media/communication experts. When considering internal members of the crisis committee, one should include mid to high-level employees/executives of the company with con- sistent knowledge of its internal procedures and policies. There should be representatives from: • the supply and contractual departments that can implement the demands from the com- mittee efficiently; • the executive board;
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