BRAZIL Law and Practice Contributed by: Thaís Vasconcellos de Sá, Bermudes Advogados
ing the consequences of the crisis in an efficient manner; therefore, this reporting line to manage- ment cannot deprive it of such mandate, includ- ing from a financial budget perspective. 3.5 External Advisory The engagement of external experts to help a company prepare for and deal with a crisis is also extremely important. There are external management consultants and law firms in Brazil that provide consulting services to help guide a company with drafting and training of inter- nal policies and procedures for risks and crisis management. Some areas of expertise will always be para- mount during a crisis – one of which is the law. All crises have legal implications, both regard- ing their origin and arising from the measures adopted by the company to address their con- sequences. One should not underestimate the importance of engaging external law firms in crisis response, and certain law firms and law- yers in Brazil have been responsible for the co- ordination of companies’ responses to major crises in the country during the last few years. Management/corporate consultants are also important to help guide a company’s efforts in mitigating impacts/threats of disruption to the company’s activities, as well as other financial setbacks arising from a crisis. There are also consultants that specifically pro- vide input on communication efforts related to a crisis and response efforts, which includes external communication with media platforms and engagement with governmental authorities. These efforts should also be accompanied by the external law firm(s) engaged to co-ordinate the response, review their adequacy, complete- ness and legality, and ensure that the external
communications and engagement with third par- ties is consistent on all fronts. 3.6 Assessing Crisis Management Success An evaluation of a company’s response to a crisis should involve examining the efficacy of efforts to deal with the crisis itself (that is, dealing with its immediate consequences, including by mitigating or repairing impacts caused to third parties in an efficient and adequate manner) as well as those directed at successfully surviving the crisis by mitigating its effects on the com- pany’s activities. 4. Managing and Preventing Crises 4.1 Identifying a Crisis Efficient and Adequate Response One of the most important aspects when dealing with a crisis is a company’s capacity to effect an immediate response. Transparent commu- nication and taking material steps to address the consequences of a crisis are key to working through it. Companies should have immediate action plans in place, with clear steps for: • forming and engaging the internal crisis com- mittee; • effecting immediate communication through the company’s reporting lines; • taking immediate actions and external communication with relevant governmental authorities and other stakeholders; and • structuring an exceptional budget assignment to deal with the crisis that is adequate to its mandate. It is common for companies to rely on exter- nal experts/consultants when structuring these immediate action plans and when putting them
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