GERMANY Law and Practice Contributed by: Rainer Wilke, Ingo Theusinger and Ralph Schilha, Noerr
Noerr Speditionstraße 1 40221 Düsseldorf Germany Tel: +49 211 499 860 Fax: +49 211 499 860 100 Email: info@noerr.com Web: www.noerr.com
1. Market Overview 1.1 Market Comparison Key Aspects of Crisis Management
Regulatory changes Germany and the EU have ramped up their crisis legislation. Companies are adapting by updating compliance systems and engaging in scenario- planning to align with such new regulations. Cyber-attacks and AI Cyber-risks have become increasingly signifi- cant – especially due to an increase in cyber- attacks and the malevolent use of AI. Product liability/green claims Companies face liability for defective products and misleading green claims, which can lead to legal action. Whistle-blowing As critical behaviour or actions can often only be identified from within an organisation, regula- tors and other bodies place great importance on employees having appropriate channels to raise concerns. This can effectively spotlight unlaw- ful behaviours that would have otherwise gone unnoticed. ESG/working conditions The increasing importance of ESG poses legal risks. This global trend reflects society’s increas- ing focus on sustainability, which is leading to greater scrutiny and potential legal consequenc-
For the purposes of this article, the authors define “crisis” as any internal or external situ - ation that poses an acute and significant threat to an organisation’s reputation, assets or oper- ations and that therefore requires immediate action. Crisis management is understood as dealing with such situations. The following aspects are particularly important. Economic challenges Germany’s 0.2% GDP contraction in 2024 has prompted companies to enhance their crisis pre- paredness. Businesses are focusing on financial resilience and supply chain stability to navigate economic uncertainties. Global political developments Recent political manoeuvres have introduced new risks, leading companies to reassess their crisis management strategies to address poten- tial political instability. Political changes can lead to delays or changes in the legislative process and can affect the country’s geopolitical stance, potentially altering international relations and trade agreements.
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