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How RIG professionals can act in corporate crisis management
Crisis management is an increasingly present topic in the corporate environment, especially in a scenario where political and regulatory issues can profoundly impact a company's operations and reputation.
When a crisis arises, the rapid and coordinated reaction of Institutional and Government Relations (RIG) professionals can make the difference between preserving and losing an organization's value.
This article explores corporate crisis scenarios, the belgium mobile database undamental role of RIG professionals in their prevention and management, and the skills that these specialists must master to face these challenges.
Possible corporate crisis scenarios
A corporate crisis can arise for a variety of reasons: internal problems, operational failures, financial or conduct scandals, and even external events, such as sudden changes in government regulations or political crises.
However, crises caused by political and regulatory events can be particularly challenging, as they involve not only the company, but also its relationship with the government, regulators and society in general.
Crises caused by political and regulatory events
Changes in legislation, new regulations, government investigations or political crises can have severe consequences for companies. Delays in compliance or inadvertent non-compliance with laws can result in heavy fines, operational restrictions and irreparable damage to a company’s reputation.
Recent examples show how a lack of preparation can be detrimental. Companies in the technology sector, for example, have faced significant crises following changes in data protection legislation . In Europe, the GDPR (General Data Protection Regulation) has forced many companies to review their practices, and those that have not complied have faced severe sanctions.