Czaro Strategic Communications

The Institute for Crisis Management recently released their annual “Business Crisis Trend Report” based on news coverage.

When I looked at the industries listed, I relived 2008 over again – and it was not a good year. It was actually the second worst year on record. The most crisis-filled year is 2005, with Hurricanes Katrina and Rita accounting for the majority of the news coverage. However, last year, the coverage was spread around many top industries:

• Banking. Three words: Sub-prime meltdown. Then consider the complicated Bank of America/Merrill Lynch merger, and it’s easy to see why banking led the list (and this is a list you don’t want to be at the top of).
• Food Industry. Starbucks closed 600 stores and had to pay its California baristas $100 million in back tips. And it was a big year for food poisoning and e-coli problems surrounding tomatoes, infant formula, pet food, beef and jalapenos.
• Security Brokers/Investment Companies. Bailout central – Bear Stearns, Citigroup, E-Trade, Goldman-Sachs, Lehman Brothers and Merrill. Need I continue?
• Petroleum Industry. Record gas prices put a strangle hold on the country, hitting consumers at the pump and at the store with increased prices for goods. And record revenues for oil companies poured salt in the wound.
• Insurance Industry. More Katrina/Rita – I’m sure AIG rings a bell.
• Automobile Manufacturing. Bailout Central Part II. However recalls from BMW, Chrysler, Ford, GM, Honda, Nissan, Pontiac and Porsche added to the pain.
• Aircraft Industry. It was a horrible year all around. Six aircraft crashes around the world resulting in hundreds of deaths. American Airlines and Southwest we fined record sums for safety violations. ATA, along with three international carries folded, Continental cut 3,000 jobs and Northwest continued to deal with an ongoing strike. Other events included impaired pilots and unruly passengers.

Business crises are garnering more coverage than ever before. Internet reporting and social media are significant reasons why. Take this year’s KFC, Popeye’s and Domino’s catastrophes that played out on blogs and Twitter. These crises spread rapidly online, before getting the attention of traditional news outlets.

Every business should have a solid crisis communication plan if they hope to navigate through troubled times.