is the average cost assessed for managing the installed crisis

In addition to affecting the most valuable asset of organizations – which is their credibility – crises have a significant financial impact. Consultants and experts estimate that the cost of a crisis is at least 10% to 20% of the company’s annual revenue, which includes fines, indemnities stipulated by law and authorities. Another cost arises from immediate expenses with legal defense and communication. Emergency expenses with lawyers, publication of public clarification reports, strategy development and communication consultancy do not amount to less than R $ 3 million reais.

experienced corporate crises in the last 5 years**

We live in a society where we produce risks all the time. Operational, technological, financial, legal failures, consumer dissatisfaction and risks in the management of human capital affect the reputation of organizations on a global scale. Those who deal directly with this scale of problems are the main leaders, whose responsibility is included in the legal processes. Almost 8 out of 10 Brazilian leaders, that is, 77% of executives, have faced at least one crisis in the last five years. The world average is also high and reaches 69% of companies, according to a global crisis survey prepared by PricewaterhouseCoopers. Crisis, unfortunately, occurs, hence the competitive advantage in preparing.

is what a company spends to manage a crisis instead of avoiding it ****

The crises demonstrate that the cost-benefit ratio of investments in Compliance needs to be seriously considered. Investing in Compliance prevents the loss of even more significant amounts. “Anyone who doesn’t take preparation seriously is preparing for failure,” the phrase attributed to Benjamin Franklin makes perfect sense. Investing in Compliance costs the equivalent of US $ 222 per employee. Non-compliance results in an expense equivalent to almost four times as much, of about $ 820 per employee. The average annual costs of Compliance are estimated at US $ 5.47 million dollars. This includes structure with employees, equipment, training, outsourcing, etc. The damage generated by problems resulting from the lack of care is, on average, three times greater, reaching the figure of US $ 14.82 million per year. The data are from a study by the Ponemon Institute and Globalscape, published in 2017.

Damage resulting from non-compliance can lead to a devaluation of the business, a drop in the value of shares and a decrease in sales and the number of customers. As reputation is an intangible asset, nothing compares to image damage, which undermines the brand’s reputation, such as talent leakage, consumer distrust, loss of contracts and customers. Communication is a strategic ally of compliance to strengthen the internal culture and protect the organization with compliance procedures that are frequently published, reach and quality.

Training and capacity building in the strategic field of communication are now priorities for companies. Communication affects and contributes to results. Leaders and teams need to improve skills and develop their activities with autonomy. We prepare courses on contemporary challenges for organizations:

• Compliance and communication
  • Mídia-training compliance
  • Planning and implementation of the compliance program

• Coaching and leadership narratives
  • Communication Empowerment: media training, public speaking coaching, risk and crisis management
  • M&M Women and Media: customized training for women

* PriceWaterCooper survey, December 2019, conducted with 2,084 executives from 43 countries.
** Data Ponemon Institute / 2017