You’ve painstakingly built up your reputation over a number of years… at the cost of marketing and sales operations. It would be a shame to risk it collapsing in the space of a few hours, wiping out all that hard work. Whether it’s a cyber-attack following a data leak, a scandal linked to an error (deliberate or not) or inappropriate behaviour, certain alerts need to be taken seriously if they are not to degenerate into a crisis.

In the age of social media and the free expression of opinion, particularly among the younger generations, an incident can very quickly degenerate into an unmanageable crisis.

Here are 5 warning signs not to be ignored.

They may seem obvious, but they are often underestimated, as demonstrated by the examples given for each case.

SIGN #1

Sudden surge
on social media

The first signs of a reputational crisis often emerge on Twitter (X), LinkedIn, TikTok or Reddit. Negative comments, a complaint launched by a post that goes viral, accompanied by a killer hashtag to denounce a bad practice that the management team has applied shamelessly or through negligence.

Example: In August 2019, a passenger on an EasyJet flight from London to Geneva tweeted a photo of a woman sitting on a backless seat. The image quickly went viral, amassing over 40,000 likes and 20,000 retweets. EasyJet’s initial response, which included asking the poster to delete the picture, was met with public backlash, highlighting the importance of appropriate and timely responses to social media crises.

ACTION TO BE TAKEN

Don’t let the conversation get away from you: watch, listen, analyse and respond quickly with transparency and honesty.

SIGN #2

Rumours on Suspicious Employee Behavior

Never allow a rumour to spread in internal chat rooms or coffee corners, whether it concerns questionable employee behaviour or management practices or decisions that have not been understood and accepted.

Unhealthy rumours undermine the trust of employees, who will perceive them as a sign of impunity or complacency on the part of the management team. It generates frustration and discontent. Disgruntled or shocked employees may share sensitive company documents, either voluntarily or involuntarily. They may also alert the media to dubious practices at their employer. This opens the door to misinformation, disinformation and scandal.

Example: In 2019, H2O Asset Management, a London-based investment firm, faced scrutiny from the UK’s Financial Conduct Authority (FCA) over controversial investments linked to financier Lars Windhorst. The situation escalated when it was revealed that H2O executives had fabricated documents and meeting minutes to cover up insufficient due diligence and lax valuation processes. This incident underscores the risks posed by unethical behavior within an organisation.

ACTION TO BE TAKEN

Watch out for weak signals internally, mood swings and things left unsaid that mask disapproval or distance from your decisions. Make sure, too, that your HR management and cyber security are solid.

Find out what Oz’n’gO can do for you

SIGN #3

Insistent journalist and elusive partners

When a journalist insists on commenting on a sensitive subject, or partners start to distance themselves, there’s often a fire brewing. And the consequences of poor media management can be dramatic, putting you at risk of even going out of business.

Example: In 2022, KPMG, one of the Big Four accounting firms, came under investigation by the UK’s Financial Reporting Council (FRC) regarding its audit of Entain’s 2022 accounts. This probe added to KPMG’s ongoing challenges in restoring its reputation amid previous fines and lawsuits, illustrating how increased regulatory scrutiny and media attention can signal reputational risks.

ACTION TO BE TAKEN

Anticipate: don’t be caught unaware by a media investigation that could explode into the open. Identify the riskiest elements, the possible abuses and prepare your counter-arguments and documents.

SIGN #4

Unexplained and inexplicable resignations and departures

The loss of more or less strategic clients or an abnormally high turnover of key talent are often linked to a crisis of confidence. This phenomenon can be amplified by a climate of internal uncertainty or suspicion of irregularities. A strong signal that should trigger an immediate internal investigation.

Example: In 2020, Wirecard, a German payment processing company, collapsed after it was revealed that €1.9 billion were missing from its accounts. Following the scandal, several key executives resigned or were arrested, and major clients and partners severed ties with the company, leading to its insolvency. This case highlights how financial misconduct can result in the abrupt loss of stakeholders and talent.

ACTION TO BE TAKEN

These examples illustrate how inappropriate behaviour within management can lead to legal action and seriously damage the company’s reputation. Make sure your ethics match your practices. If a scandal is reported, communicate with transparency and humility. Do a post-mortem and take the necessary corrective measures. Communicate them.

SIGN #5

Early Signs of a Cyberattack or Security Breach

An increase in phishing attempts, unusual activity on servers or leaked internal emails are all signs of a potential cyber attack. Companies need to keep an active watch on their IT infrastructures and have communications ready to be deployed in the event of an attack.

Example: In 2018, British Airways experienced a significant data breach where hackers obtained the personal and financial details of over 420,000 customers and staff. The airline faced substantial fines and legal actions, emphasizing the critical need for robust cybersecurity measures and prompt responses to potential breaches.

ACTION TO BE TAKEN

Simulate a cyber-attack to identify your strengths and weaknesses. Set up cybersecurity governance (risk analysis, prioritisation of your data, verification of legal procedures). Carry out regular penetration tests and vulnerability scans (especially on the vulnerabilities most frequently exploited by hackers). Train your teams on cyber attacks (techniques, methods, vocabulary, etc.). Set up crisis communication processes and flows .

Oz’n’gO can help you to lay the foundations of crisis communication and liaise you with recognised cybersecurity experts.

📢 Prevention is better than suffering! These 5 signs should be a warning to any informed manager or communicator. The key: proactive monitoring, a team ready to react and well-prepared crisis communications.