INTRODUCTION Contributed by: Thiago Jabor Pinheiro, Rômulo Silveira da Rocha Sampaio and Lucas Guimarães Ribeiro, Mattos Filho
continue to have disastrous consequences for the communities and the environment in which affected companies operate. However, today’s interconnected world introduces a remarkable novelty: crises can now emerge from a far more diverse range of sources, evolve much faster in scale and reach, and have a much broader impact. At the same time, the expectations of stake- holders – including regulators and communities – have evolved regarding the degree of care and responsibility that corporate leaders are expect- ed to take and the ethical standards that they are expected to follow. Regulators have developed new legal and practical tools to respond to crises and hold companies and individuals account- able. Communities now have more resources to raise awareness and seek redress. Conse- quently, companies are held to a much higher standard than ever before, requiring a broader perspective for their crisis prevention and man- agement practices as well as their mitigation and remediation efforts. Cross-border crises and geopolitical tension Another complicating factor is the cross-border potential of certain crises. A crisis event that happens in Brazil, for example, can very easily generate impacts, investigations and litigation in other jurisdictions, as regulators and communi- ties have deeper connections and the ability to reach beyond territorial borders. All of this occurs in a time of increasing geopolitical tension, pre- senting an additional challenge for organisations that operate in several jurisdictions. In some parts of the world, political instability, disputes concerning immigration and foreign trade, and decreased trust in multilateral organi- sations and negotiations can also disrupt supply chains, affect market stability, and pose security
risks – creating additional complexity for those whose job it is to ensure that a global business remains stable. The German chapter by Wilke, Theusinger and Schilla in this guide exemplifies how both the local and global political landscape can affect crises and their management. Technological challenges Technological progress and the reliance on data have increased companies’ exposure to IT threats that could have unpredictable effects and lead to serious corporate crises. Data protection is a significant modern concern for companies and the rise of cyberthreats makes privacy an increasingly important issue. Data breaches and cyber-attacks can have dra- matic effects and consequences may range from legal penalties to the loss of trust from custom- ers and counterparties. Recent high-profile data breaches highlight the importance of cybersecu- rity policies and protections in crisis prevention. In their insightful contribution to this guide, Sing- er and Griffanti discuss the complexity of cyber- security crises and the importance of managing the expectations of various stakeholders. In the USA – Illinois chapter, the authors discuss the role of the media in shaping public perception of privacy and safety. In the USA – Washington, DC chapter, Marlin, Becker, McQuillen and Pulio- Deighton emphasise the critical importance of comprehensive risk assessment and preparation for cybersecurity crisis response. They argue that commitment from management is indispen- sable in successfully addressing the impact of
cyber-incidents. Climate change
For some time, climate change has been an emerging source of crisis as companies and communities adapt to its risks and consequenc-
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