Crisis Planning—Do it Right - PowerPoint Presentation

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Crisis Planning—Do it RightCommunications and Legal CoordinationCentral Chesapeake ChapterJune 2016

H a w t h o r n g r o u p Slide2

A discussion with… Larry Walsh, Vice Chairman, Hawthorn GroupManaging Director, Crisis Management, Marsh Risk ConsultingManaging Director, Hill & Knowlton, Europe and US

Steven Miller, Of-Counsel, Hogan

Lovells- Former General Counsel, Constellation Energy

Crisis Planning—Do it Right

H a w t h o r n g r o u p Slide3

I. The evolving nature of crisesAn evolution from hurricanes to cyber-terrorismThe advent of the “all-encompassing” event or crisisBoth real and imagined (or rumored)Impacts corporate reputationUndercuts trust

Occurs in real-time, globallyRequires a culture of preparedness

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II. The Changing Operating Environment

All business is public businessNew media channels (cable, digital, social, personal)

New regulations for reporting and disclosure (SOX, SEC, ex parte rules)Issues move globally in an instantMedia focus/general awareness of corporate crisis

Changing customer expectations

Public trust in business is low

Changes in distribution channels, intermediaries

Transparency and the demand for instant responsiveness Expanded board oversight of risk and complianceH a w t h o r n g r o u p Crisis Planning—Do it RightSlide5

III. Crisis PreparednessFocus on prevention and mitigationValues (i.e., Michael Porter) Strengthen customer/stakeholder trust and commitment

Attract/retain the best employeesLessen risk, protect legal position, reduce costs

Protect corporate reputation/brand

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IV. Core Crisis Communications Functions

Alert, Notification and staffing of Corporate Communications Team

Insure Corporate Communications staff is alerted and prepared

Manage stakeholder communications, reputation issues, and rumor control

Customer Communication and Public Information

Reliable, actionable information to customers/Gov’t and Community officials

Relay information effectively regarding actions being taken by the companyEmployee and Executive Communication Reliable/actionable information to employees, executivesProvide accurate information regarding company actions Operational CoordinationMaintain coordination between Corporate Communications and the CMTInsure rapid access to facts and approval of communications messagesRecoveryAssess reputational impact/damage, take corrective actionsReview all areas of response, adjust planning, training and staffing

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“Plans are nothing; planning is everything.”

Gen. Dwight Eisenhower

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Enterprise

Risk

Management

Corporate Crisis

Management

Plan

Business Continuity

Supply Chain

CommunicationsEmergency Response

Security

Human Impact

IT/Cyber

Roll Out and

Awareness

Training and

Exercising

Issues Management

Activate Teams

Define Strategy

Manage/Mitigate

Forecast Consequences

Identify Stakeholders

Messages/Outreach

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Board of Directors

Compliance

Risk

Legal/Regulatory/Gov’t Affairs

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Steve Miller, Of Counsel, Hogan Lovells US LLPJune 23, 2016Annapolis, MDPRSA – Central Chesapeake ChapterCrisis Planning: Do It RightPublic Relations/Communications and Legal CoordinationSlide10

| 10Hogan LovellsSteve Miller

Currently Of-Counsel in the Energy Practice Group of Hogan Lovells

Focus on domestic and international energy transactional, development and regulatory work

Previously served as General Counsel of Constellation Energy’s (now Exelon’s) power generation companies and also had management oversight of nuclear Communications Group

He even has some friends who are public relations professionals….Slide11

Hogan Lovells| 11Legal and Communications Coordination

During a crisis:

Lawyers must recognize the need to communicate, and to whom, especially in today’s world of instant news….

Communicators must recognize the need to avoid or mitigate legal risks and liabilities, especially in today’s world of instant lawsuits….

Both must understand when communications are required (or limited/prohibited) by statute or regulationSlide12

Hogan Lovells| 12Legal and Communications Coordination

How best to do this?

Do not wait for a crisis!

Get to know and work closely with one another

Respect and understand the other’s strategic mission/responsibility/accountability

Lawyers and communicators usually have more insight/tentacles into the organization than do other staff functions

Focus on the goal: Prudent, yet meaningful, communication that protects reputation, limits liability, and establishes trust in the company as an honest broker of informationPlan: Work through scenarios; have procedures/protocols in place Train: Lawyers are not communicators and communicators are not lawyers, but we can learn from one another. Bring in outside consultants for training and latest views/laws/trends.Drill: Work the plan and use your training in table-top scenariosSlide13

Hogan Lovells| 13First-ever union strike at a nuclear power plantInquiries re: why nuclear plant security forces are able to carry automatic weapons and use deadly force in protecting the plantNuclear contractor workers on site included an individual on FBI’s terrorist watch listResponses to school board members’ inflammatory statements about the Company while in active tax negotiationsQuestions re: a trace amount of tritium that does not require reporting to the regulatorRequest for responses that implicate settlement discussions on a class action suit Some Real-Life Examples