The impact of crises on shareholder value
15% decrease on shareholder value
Non-recover companies experienced a 15% decline on their shareholder value after experiencing a crisis.
- Unpreparedness: the organization has never trained or simulated a crisis
- Slow response: the organization fails to deliver a fast message
- Unaligned communication: the organization has an unaligned flow of communication
5% increase on shareholder value
Even more interestingly, the recover companies experienced a 5% rise on their shareholder value after experiencing a crisis.
- Preparedness: the organization has trained employees for crisis management
- Fast response: the organization is fast to deliver a message
- Alignment: the organization has an aligned flow of communication
Source: Knight, Rory F.; Pretty, Deborah (1996). The Impact of Catastrophes on Shareholder Value
Source: MIT Technology Review: "Crisis Communication After an Attack"
for crisis and incident management
The world is constantly changing
The level of implication
Today new types of crises have emerged thus the level of implication. What would not have been a crisis 15 years ago can become one in matter of seconds to day. This demands organizations to be very well-prepared. Especially for the unexpected.
spread at very high pace
Managing a crisis has become much harder. Today information spread incredibely fast through social media and other digital services which require organizations to keep up at a very high pace. Today, organizations need to be a step ahead.
The level of complexity
has raised as well
All organizations are digital today. Private information such as customer data are stored digital and when comprised this can lead to disaster. Managing crises with such a high level of complexity is not an easy task.
Krizo is a uniformed platform capable of handling any type of crisis
- Natural disaster
- Technological crises
- Organizational Misdeeds
- Workplace Violence
- Terrorist attacks/man-made disasters