When a crisis hits, it is imperative that banks communicate and reassure their employees and the public – no matter the time of day or the resulting impact from the event.

Unlike many companies, banks are expected to endure and overcome all manner of crises without missing a beat, be it the loss of confidential customer data, a hurricane or the sudden departure of a key executive. Indeed, banks are required to have an operational disaster recovery plan in place to bolster the public's trust in the nation’s banking system.

Yet banks are not required to have a matching plan for communicating with the public in the aftermath of a crisis, even though this is critical for generating public trust and safeguarding a bank’s reputation among its customers and key stakeholders.

All banks would be well-served by having a crisis communications plan in place before such an event occurs, to quickly and efficiently communicate key messages even in times of uncertainty. They should also be well-versed in how to communicate with the media during a crisis.

Crisis Communications Planning

Here are some general guidelines to follow when developing a crisis plan:

•  Identify potential issues that could directly affect the bank, such as a robbery or fire at a branch. Discuss potential issues and outcomes with the managers heading each operational and business line area.

•  Next, identify indirect factors that could affect the bank, such as customer data theft at the bank’s credit card processor.

•  Designate a point person(s) whom employees can call first to inform that there is a crisis. And appoint a crisis communications team involving key personnel that likely will play a role in the response (in most cases, executive management and general counsel, the corporate communications head or PR counsel, and a spokesperson who is the only employee authorized to speak on behalf of the company).

•  Develop a detailed process for gathering information, developing and approving key communication vehicles such as press releases.

•  Have an outlet to inform employees immediately, such as an intranet site or an emergency number to call to get information.

•  Be ready to coordinate with the person in charge of the bank’s Website to immediately post updates.

•  Develop a list of key media contacts who are likely to cover the crisis, including print, broadcast, wire and trade press. If possible, have b-roll video footage of normal banking activities ready to go for the TV media, which they can use to help tell the story. Having reassuring images will help keep the bank in a positive light.

Communicating With the Media

Most emergency scenarios unfold very quickly, generating media attention before companies are ready to answer questions in public. Invariably, the media will ask when the company discovered the problem, what it did in response and what it is doing going forward.

In the event of an unplanned emergency situation, a bank’s communications goal should be to present information to the media in a complete, consistent, truthful and timely manner, while speaking with candor to address the interests of customers, employees, vendors and the public. Above all, demonstrate that the bank is concerned, prepared and responding effectively to all emergency situations.

Many times the spokesperson may not be able to immediately answer every question. To avoid speculation by the media and the public, the spokesperson should immediately address four key elements:

1. Acknowledge awareness of the problem.
2. Express concern for the problem and the victims, if any.
3. Detail the company’s approach to addressing the problem (to the extent possible).
4. Commit to getting answers, providing scheduled updates and remaining available.

Take careful note that the media can be a bank’s best friend in a crisis situation if dealt with proactively and honestly. They have a legitimate interest in an emergency situation, and they will get the story, no matter how or from whom.

In fact, cooperation with the media is the best guarantee the company has for factual coverage and the fair presentation of its viewpoint during a crisis situation. Just make sure to balance the interests of customers, employees and vendors with those of the news media.