Five Ways Banks Can Master Crisis Management
February 11, 2015 7:30 AM
From regulatory settlements to data breaches, bankers need to handle negative press with finesse and care. Here are several ways executives can effectively communicate with stakeholders and restore investor and customer confidence .
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Get In Front of the News
Executives need to inform shareholders, employees, customers and the media in a timely manner, while providing updates as needed. Absent such communication, rumors may run rampant, particularly on blogs and social media.
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Frame the Issue
Bankers should accentuate the positive by focusing on what they are doing to avoid repeating mistakes. People usually understand that miscues happen, as long as the bank is honest about problems and how to fix them.
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Connect with Stakeholders
In times of crisis, executives often miss out on an opportunity to connect with affected stakeholders. Executives must deal with emotional elements first, or the facts won't matter that much. A dose of humility can go a long way.
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Avoid Jargon
Executives need to avoid "banker speak" by using terms that the average person can understand. Sincerity and empathy are often lost when bankers fall back on industry terms and difficult-to-understand acronyms.
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Take Time to Debrief, Reflect
When the dust has settled, executives should complete a post-mortem evaluation of the crisis to see how it can be avoided in the future. When possible, those findings should be shared with stakeholders and the media.
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