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<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >Research Wrap: Senate SHJ Crisis Index 300</span>

Research Wrap: Senate SHJ Crisis Index 300

Senate has released its 2025 Crisis Index 300 research, revealing the financial impact of some 300 crises impacting listed firms across 32 industry sectors over the past 40 years. The study revealed the average resulting drop in share prices was 35.2 per cent, and the companies involved took an average of 427 days to recover from a crisis, while nearly a third of the companies' share prices have yet to recover. Telum spoke with Craig Badings, Partner and Head of Reputation at SenateSHJ, to understand some of the detail behind the research, and the lessons listed companies and other firms can take from the study.

Are the scenarios and the crises that are detailed in the index across the different industries worst case scenarios, or are there lessons in here for a typical listed entity?
There are always lessons for listed entities or any company for that matter. It often depends on what the crisis is and how they react to that crisis.

We've seen in the past, companies that deal with crises will typically recover quicker. And there are some great examples where companies have done it well. Johnson and Johnson. Whole Foods. KFC.

But those who deal with it badly can create a secondary crisis for themselves based on the way they react or don't react.

The Index is based on crises befalling listed companies globally, but they can impact any firm. Is the impact on listed firms exacerbated because of the attention they get from analysts and investors?
It depends what that focus from the shareholders or the investors is like. If the shareholders or investors view the company as handling the crisis well - they're doing everything they can to rectify it, they've been transparent, they have apologized, they have laid out what they're going to do to make the reforms required – then typically that results in less of the blowtorch being applied by those stakeholders.

However, analysts and shareholders in particular, if they view the company as being remiss in their response, not transparent, hiding behind too much legalese, or slow to react and not being authentic, the punishment can be quite harsh.

A lot of these crises were either “self-inflicted” or at least preventable. Are there any common lessons we can learn from these?
Typically, when we look back at a crisis, including many of those that are listed on the Crisis Index, it's often a result of culture, or behaviour, and typically that behaviour occurs across seven categories:
  • Taking a shareholder primacy over the stakeholder primacy view
  • Not taking a stand on an issue
  • A lack of governance
  • Gaps in supervision, monitoring or reporting
  • Taking shortcuts
  • Blame culture - them versus us, like a union stoush
  • Training and staff, such as security guards put at the doors of hotels during the pandemic with no training in how to deal with COVID
The report talks about the importance of preparedness and scenario planning and testing, but some things are unforeseeable, and can't be prevented, like natural disasters or pandemics. How far should a company go in anticipating and planning for events that are out of their control?
Planning is everything. Everything.

If you don't plan and run crisis simulations, I can guarantee your response is going to fall over, or your team is not going to be up to it.

Those simulations very often need to take into account things that are outside your control, but also things that typically could happen in your environment.

But if you're not going to be running simulations, and you're not going to test your people and your processes, I guarantee you're going to have a problem.

I can't begin to tell you how many companies don't run simulations. And they find out when the proverbial hits the fan that they're just not prepared.

I think it was a Prussian Field Marshal who said no battle plan survives its first encounter with the enemy. How much of a difference can preparation make - what advantages does it give you when the proverbial does hit the fan?
There are three advantages. The first is teamwork. If you run a simulation, the team starts knowing who's doing what, and you can start relying on people and trusting people. And you can only do that when you're under the pump.

The second advantage is when you're under the pump, you discover where the gaps are. Running a simulation will highlight the gaps both in your crisis response, and also your operational response internally.

And that leads to the third thing: typically in a crisis, the management within the crisis management team doesn't have time to run the business.

And so when you run a simulation, they quickly realize they may be taken out for a week, a day, two weeks, or more. Who runs the business when they're running the crisis?
 
You’ve opened up the information behind the Crisis Index providing free access to firms to analyse and draw information from. How can they use it?
There are a lot of ways. If you're an analyst in the banking and financial services and insurance sector, you can have a look at it to understand what the biggest threat is in that sector.  What are they most likely to suffer in terms of a crisis? We know from the Crisis index 300 that it's actually mismanagement and white collar crime.

So an analyst could say to the bank that they invested in, what are your plans for managing a crisis that involves mismanagement of white collar crime?

Another example would be a crisis manager handling an issue at an automobile manufacturer, and they can go into the Crisis Index and find out what typically is the length of time to recovery for EPS or share price in that sector. They can look at what they need to do to mitigate that and bring that back a bit. At what they need to put in place that can help this company or brand recover quicker.

Finally, Criag, aside from “be prepared” are there sort of fundamental principles underpinning effective crisis response?  
We know from decades of dealing with crises that ultimately, your guiding light, or your North Star, should be your values or vision statement - that should guide your decisions.

Too often we see decisions made in the heat of the moment that are ego-driven, or outrage-driven, and by that I mean companies are outraged at the regulator or they're outraged at the consumer, the way they're getting stuck into the company. That never leads to a good decision.

Always stick to your values when you're making a decision. And don't let fear or confusion interfere with that moral compass or cloud your decision making.

And finally, an apology doesn't make you legally liable. If you apologize, you can do it in a way that doesn't admit fault, but actually does show genuine concern for those who are impacted.

I can't tell you how many times lawyers get in the way of apologizing, and the company comes across as cold-hearted, uncaring, and their stakeholders turn around and say, you guys actually don't give a damn.

Empathy is absolutely key to the way you respond and it's always got to be a people-led response, a human-led response, because otherwise you run the risk of being called callous and uncaring.
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Nicole
Industry update

Nicole Reaney to head IPREX, Asia Pacific

Global communications group, IPREX, has named Nicole Reaney as its new Asia Pacific President. She succeeds Anu Gupta of APRW in Singapore.

This announcement comes as part of a series of leadership changes to the group's global board, which includes the recent appointments of Heidi Otway as IPREX Global President and David Rudd as Americas Regional President.

Nicole, who is also CEO of InsideOut PR, will continue in her role, adding the IPREX leadership remit to her portfolio.

Nicole said: "I'm thrilled to take on this role and help strengthen APAC region's visibility on a global front." 

The Earned View

The hidden cost of seeing risk everywhere

There is a particular psychological condition that develops in senior communications leaders over time, and nobody talks about it because it looks too much like competence.

It rarely appears in job descriptions or competency frameworks. But it quietly shapes how organisations think, behave, make decisions, as well as how we think about ourselves.

Our profession trains us to anticipate failure. We are taught, often implicitly and through hard experience, to read the room before the room knows it has a temperature. To feel the tremor before the quake. But the organisations we serve still need us to be capable of belief, momentum and possibility, and somewhere in the gap between those two truths, a lot of us have quietly lost our footing.

The competency nobody questions

Modern communications leadership has always revolved around institutional threat interpretation.

  • What if this leaks?

  • What if this offends people?

  • What if activists organise around it?

  • What if the media reframes it in ways we cannot control?

For senior communicators, this kind of thinking is not paranoia. It is a core competence, and in many ways, it has rightly been rewarded as such.

But there is a point at which healthy vigilance begins to distort institutional behaviour in ways that are difficult to see from the inside, because from the inside it still looks like diligence.

 

Spun out

Institutional trust was already eroding before many of us arrived at the table. The scepticism was real, the scrutiny was justified, and the pressure on organisations to protect themselves from an increasingly unforgiving public environment was entirely understandable. But as the Edelman Trust Barometer continues its steady annual decline, I sometimes wonder how much of that erosion we have since built ourselves. Whether the old art of spin has, quietly and over time, spun the web we now find ourselves increasingly caught in.

 

We are what we rehearse

Ultimately, organisations become what they rehearse. And organisations that rehearse fear long enough eventually struggle to distinguish discomfort from danger, criticism from crisis, and the raised eyebrow from the burning building.

I want to be honest here: I don’t have clean answers to this, and I’m not writing from the outside looking in. I have been and continue to be rewarded for exactly this kind of thinking, incentivised to find the risk, name the threat, and walk into rooms as the person who could see what others couldn’t. I understand its seductiveness, because it works. It earns us a seat at the table in a way that few other professional postures do, and that feeling of being genuinely useful to leaders navigating real pressure is one of the main reasons I get up to go to work.

Which is perhaps why it is so difficult to notice when the thing that made us valuable has begun to make us and the organisations we serve, smaller.


 

The case for genuine accountability

When avoiding exposure becomes the primary organisational reflex, accountability starts to erode. Not through any conscious decision to evade responsibility, but because genuine accountability requires a willingness to be clearly and publicly wrong, and clarity has become precisely what these organisations fear most.

What emerges instead is the language of accountability without its substance: acknowledgement without admission, review without consequence, apology without change.

Into that vacuum our profession has enthusiastically poured the concept of authenticity. We have advised organisations to be more human, more genuine, more real. And they have listened, briefed agencies, approved strategies, and published content that performs authenticity with considerable production value while remaining perfectly, carefully, and strategically safe. Which is not authenticity at all. It is its most sophisticated impersonation, and audiences know the difference in their bones even when they struggle to articulate it.

The result is not dramatic scandal. It is something slower and more damaging: campaigns that lose their personality through endless risk management until what remains is technically inoffensive and completely forgettable, public statements nobody inside actually believes and nobody outside actually trusts, and organisations so focused on avoiding negative attention that they have been stripped of the distinctiveness that made them worth paying attention to in the first place.

It doesn’t happen often, and most leaders we work with are genuinely trying to do the right thing in genuinely difficult environments. But we recognise it when it does. Those moments when the organisation is so focused on managing the perception of a decision that the decision itself becomes secondary, and we are brought in to help bridge that gap rather than to challenge it. It is a role that can flatter our craft while quietly diminishing our purpose, and most of us who have been in this profession long enough have felt that tension from the inside.


Us at our best

Our role is not to eliminate risk from institutions. That is impossible, and the pursuit of it is its own kind of damage. Our role is to help organisations navigate uncertainty without becoming psychologically captive to it, and sometimes that means being the person in the room who says that the greater risk is not the one everyone is currently afraid of.

That takes judgement, perspective and the kind of confidence that comes not from certainty, but from experience. And it is, I think, the most valuable thing our profession has to offer when we are at our best.

An organisation that optimises exclusively for reputational safety may well protect itself from backlash.

But it will also, quietly and incrementally, protect itself from relevance.


Matthew (Matt) Thomas is Founder and Chief Catalyst at Stake: The Reputation Company, a Melbourne-based consultancy working across brand, reputation, communications, and public affairs. He has advised some of Australia’s largest private companies and has worked extensively with global organisations localising their storytelling and narratives for Australian audiences. His experience spans consumer, government, health, infrastructure, technology, and corporate reputation, including advisory work at all levels of government in Australia.

Matt’s work sits at the intersection of communications, behaviour change, and institutional strategy. He is also a contributor to the The Oxford Handbook of Social Purpose, writing on reputation, legitimacy, and the growing gap between organisational messaging and operational reality.

Read more from our columnists in The Earned View

Welcome
The Earned View

Welcome to The Earned View

Telum Media is all about creating connections between journalists and PR / comms practitioners. Key to that are the connections we forge with media outlets and newsroom leaders on the ground in each of our markets, and with PR leaders and industry bodies.

Today we launch The Earned View - a curated collection of senior industry figures, sharp operators, and KOLs from across the Middle East and Asia Pacific, who have earned the right to pen regular columns on their chosen areas of expertise.

From Acorn Strategy’s Kate Midttun in Dubai to The Savage Company’s Chris Savage in Australia, Ashbury CommunicationsAdam Harper in Singapore to PRINZ CEO Susanne Martin in New Zealand, each of our 12 columnists will bring a thought-provoking mix of analysis, opinion, and practical advice to Telum Media’s PR News pages.

We kick things off with Matt Thomas, Founder and Chief Catalyst of Stake: The Reputation Company, writing on the hidden cost of risk in his strategic communications and reputation column.