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Yorkshire County Cricket Club: the stark lessons in reputational risk and crisis management

By David Bennett | November 30, 2021

With many sporting organisations worrying where the floodlights will glare next, it’s likely those that have prepared effectively will be the ones to emerge with the least reputational damage.
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Yorkshire’s crisis is about much more than its reputation

When reputational damage affects the potential economic viability of an organisation, we believe it’s a factor that no organisation can afford to ignore.

The ECB’s suspension of Yorkshire from hosting international and major matches means the club is already set to lose a Test Match and a One Day International in 2022.

It could also miss out as a venue for the 2023 Ashes tour unless it is able to meet the requirements set out by the ECB.

With sponsors also severing ties with the club, financial losses have been estimated to run into millions.

£2.5m
reported to be brought into the Headingley area by test matches

It’s not just the club that will suffer either: the cost to the wider Yorkshire economy will also be measured in millions, with BBC News reporting that test matches bring in about £2.5m to the Headingley area.

Any organisation that finds itself facing environmental, social and governance (ESG) allegations has choices.

  • Should you double-down and deny or should you open up and invite transparent investigation?
  • What steps do you take when the world is watching to see if you stumble from defiance to defence?

How you respond will reflect who you are as an organisation and what you stand for.

And with social media, the world is not just watching, but forming and sharing opinions.

With social media, the world is not just watching, but forming and sharing opinions.”

David Bennett | Global Markets P&C Hub, Willis Towers Watson

Taking a wrong step may only make your situation worse.

Perhaps more than any other industry, sports organisations understand the value of preparation.

Fortunately, there are steps you can take to mitigate the risks of reputational damage should you find your organisation at the centre of a crisis.

Build reputation into your business planning

Including reputation on your risk register is a positive step towards understanding the risks you face.

We advise carrying out regular reputational risk assessments, including risks relating to equality and diversity.”

David Bennett
Global Markets P&C Hub, Willis Towers Watson

We advise carrying out regular reputational risk assessments, including risks relating to equality and diversity.

Make it a senior management responsibility, as part of your ESG agenda and horizon scanning.

Measure how you’re doing, report on it, and have clear plans for how to mitigate any risks that emerge.

This can highlight any gaps or where you’re falling short, helping to prevent issues before they become a crisis.

Make sure you know what’s being said about you

Even if your organisation has a very positive and inclusive culture, you can never control the actions of every employee.

An isolated incident or the actions of an employee can quickly become big news.

This means it’s vital to monitor what’s being said about your organisation, especially on social media.

Consider whether you have a social media strategy in place, how closely it is aligned to your organisation’s wider strategy, and who owns it at board level.

Have a crisis plan that includes reputational risk

Make sure that your crisis management plan includes reputational risk scenarios and specifies what to do if an adverse publicity event happens.

What matters is how you respond. In an unfolding situation, how you react in the first hours can either calm the situation or make it much worse.

What matters is how you respond. In an unfolding situation, how you react in the first hours can either calm the situation or make it much worse.”

David Bennett | Global Markets P&C Hub, Willis Towers Watson

Recognise that a full-blown crisis may be beyond your communication capability and consider getting outside help to advise and manage your response.

Plan for the financial fallout of a crisis

Loss of contracts, sponsorships and ticket revenue can represent a serious financial risk.

  1. Think about how you would manage if this happened. If the crisis and its impact dragged on, how much could it end up costing you?
  2. Would you be able to carry on?
  3. What contingency do you have in place to deal with any resulting hole in your finances?

Consider how to rebuild your brand in the aftermath of a crisis

The damage inflicted by a crisis can linger long after the story recedes from the headlines.

Recovering your reputation from the wreckage can be a long haul, taking months or even years. Make sure you plan for this.

  • What would you do to rebuild your brand?
  • How would you win people round?
  • What resources will you devote to it and over what timescale?

Willis Towers Watson Reputational Risk solution

At Willis Towers Watson, we believe sports organisations need a holistic solution that can help prevent a crisis happening in the first place and will support response and recovery if one does occur.

We’ve partnered with some of the global leaders in their fields to develop a comprehensive reputational risk solution that includes:

Planning

A Reputational Risk Readiness Review can help your organisation define and quantify its reputational risks, identify the potential impacts, and map any gaps in mitigation that need to be addressed.

Prevention

Real-time horizon scanning through the powerful Polecat platform. Algorithms powered by artificial intelligence (AI) synthesise data from all online and social media channels into dashboards and risk alerts that link directly to the relevant media.

This can help you get ahead of events and prevent potential reputational issues escalating into a crisis.

Response

Our solution provides access to experienced crisis communications experts who have managed crisis situations of all kinds around the world, including advising on everything from media handling and strategy to senior leader statements and speeches.

Risk transfer

Our insurance product underwritten by Liberty Specialty Markets, offers up to $50 million cover for loss of gross profit as a result of a significant adverse publicity event, spread evenly over up to 12 months to help you stay afloat during and after a crisis.

Rehabilitation

Our experts will work with you over the longer term to develop campaigns and communications that can help you turn the tide of public opinion back in your favour.

To find out more about our Reputational Crisis Insurance and Risk Management Solution, please get in touch.

Author


Head of Reputational Risk Management
Direct and Facultative

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