Crisis
Research into the financial and organisational impacts of crises
A crisis can have an immediate and lasting impact on a company’s reputation and its future financial and organisational outcomes.
SenateSHJ conducted two research projects, the Crisis Value Erosion Index and Crisis Executive Experience, to better understand these impacts and the experiences of executives who weathered them.
Read the full reports here
Key Insights
- Only 31% of executives felt they were well-prepared to deal with the crisis in question.
- On average, companies experienced a 19% loss in share price value and 77% loss in average earnings per share (EPS).
- The share price took an average of 147 days to recover to pre-crisis levels, while EPS took an average of 224 days to recover.
- 61% of executives said the crisis negatively impacted their entire sector.
- 71% of executives cited adverse organisational impacts such as erosion of trust, staff burnout, mental health issues and an inability to attract talent.
Prepare. Communicate. Support. Respond.
The research highlights the importance of being prepared for a crisis. The executives surveyed said certain actions can have a positive impact on an organisation during a crisis. These include being decisive and responding quickly, communicating actions taken and being transparent.
As one executive put it, “Act early, quickly and proactively. Have an established crisis management structure and principles and adhere to them.”
