May 12th 4 pm reputation management dealing with the fallout of a data breach

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Transcript of May 12th 4 pm reputation management dealing with the fallout of a data breach

Page 1: May 12th 4 pm reputation management dealing with the fallout of a data breach

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Reputation Management: Dealing with the Fallout of a Data Breach

May 124:00 pm – 5:15 pm 

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Panelists

Jim MoorheadManaging Director, U.S. Public Affairs and Crisis, Burson‐Marsteller

Chris ChiamesVice President, Corporate Affairs, Orbitz Worldwide

Linn FreedmanChair Privacy & Data Security Team, Robinson + Cole

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(In)famous Cyber Incidents

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Three Pillars Define Corporate Reputation

CitizenshipSupports good causes

Environmentally consciousGood place to work

TransparentEthical

Trustworthy

Communications & Engagement

Cohesive corporate narrativeThought leadership

Stakeholder engagement Third‐Party advocates

PerformanceIndustry leader

Good customer serviceStrong managementStrong shareholder 

value

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New products and services

Financial performance

Their corporate purpose

Employees

Social responsibility

Regulatory and legal issues

US Public Wants to Hear More From Corporations

TOO MUCHNOT ENOUGH THE RIGHT AMOUNT DON’T KNOW

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The more prepared you are, the more quickly you will be able to engage.

Evolution of a Crisis

“EXPECTATION GAP”

Info vacuum filled by speculation, criticism, alarm, anger

Perceived leadership void

ESCALATINGSTAKEHOLDERDEMANDS 

Traditional media Social media

LOSS OFREPUTATION

Stakeholders lose confidence, feel betrayed

LOSS OFCONTROL

Others drive discussion,prescribe solutions

INSUFFICIENTCOMMUNICATION

Due to: Incomplete data Understandable legalconcerns Bureaucracy Anger

SURPRISE

Failure to: Anticipate Recognize Manage

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Crisis Management Preparation for Corporate Counsel

• Crisis Management Team in place pre‐breach• Vendor contracts in place, including crisis management firm

• Communications plan developed and tested• Tight control of message throughout organization

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Crisis Management Preparation forCorporate Counsel 

• Anticipate/prepare for litigation in all communications with media, consumers and regulators– Protection of attorney‐client privilege

• Cooperation/sharing with regulators and law enforcement‒ Corporate reputation

• Lessons Learned from data breaches

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“The history of the failure of war can almost be summed up in two words: too late…”

General Douglas MacArthur

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Our POV: Keys to Data Breach Management

Put victims first.  

Communicate sooner, not later. 

Prepare for a moving target.  

Be transparent about not being transparent. 

Validate your strategy through opinion research. 

Work as a team. 

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Instructive Define crisis Top crisis questions How choose spokesperson

Develop a Crisis Communications Plan

PracticalMobilization triggers First 24 hours checklist Initial statement

Predictive Specific plans for high‐priority scenarios

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Assess Situation Gather the facts Evaluate threat to reputationMonitor traditional and social media

Tools and Processes Will Enable You To

Respond Rapidly Draft initial statement Develop crisis‐specific messagingManage media (proactive/reactive)

Address Stakeholder Needs Produce stakeholder‐specific messages Engage third‐party validators Anticipate key stakeholder questions