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CCCA_V2No2_Coping-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd 5/1/08 2:37 PM Page 32 Feature often stretch around the world,leaving corporations vulnerable to saga were delivered to bookstores amidst a worldwide fever of any weak links,while outsourcing removes direct control over the anticipation, leaks presented an obvious threat to the embargos quality of parts and services. imposed before each launch. Grossman was part of the interna- At the same time,companies are being held to higher standards tional team charged with muzzling would-be spoilers. of corporate governance and scrutinized more closely in the An “emergency kit” developed by the U.K. publisher’s in- wake of Enron,WorldCom, and a host of other headline-grab- house counsel proved invaluable. It included protocols for writ- bing scandals. Now add in litigious consumers increasingly likely ing initial letters, essential information that could be easily con- to turn to class action suits in response to any inconveniences or verted to affidavits, and a clearly delineated process for approving damages they suffer, and a wired environment where blogs, web- legal action. Internet monitoring experts were on call, ready to sites, social networks, and a 24-hour news cycle can galvanize track down on-line violators,while media relations firms contacts public opinion overnight. hovered in the wings. If you’re not geared up to face a crisis — and 66% of respon- As situations developed in the days and hours leading up to dents in the PriceWaterhouseCoopers survey admit to being at each launch, in-house counsel updated the kit.As a court order least moderately concerned about their level of preparedness — was obtained in one jurisdiction, for example, the precedent was it’s time to take action. immediately sent to other jurisdictions where similar orders were required. 1 Identify and minimize risks were sold in B.C. before one official launch, Grossman and her So when 14 copies of Harry Potter and the Half-Blood Prince The first step is to identify and minimize the major risks your company faces.While you can’t predict everything, buyers from disclosing plot details.“You’re able to react in a very you can pretty easily figure out the key issues in your industry. team were able to swiftly obtain a court injunction preventing “When one pharmaceutical company gets sued over a drug, it speedy fashion and get the judicial relief you need, and get it all doesn’t take a lot of forethought to see that if you’re a pharma- in a very timely way before the cat’s out of the bag and the dam- ceutical company, it may be that you’re going to be hit by a class age is done,” she says. action on one of your drugs as well,” says Barbara Grossman, a Assemble your team insurance numbers, health records, or any other kind of sensitive 3 While not every crisis is as predictable as leaks of the lat- senior litigation partner at Fraser Milner LLP in Toronto. If your organization gathers credit card information, social est Harry Potter plot, advance planning will serve you data, the risk of privacy breaches should be top of mind. And well when disaster strikes. if your company manufac- Decide on the roles tures just about anything, Every crisis is a key staff should play in a last year’s stories of tainted “ crisis, make sure they have pet food, lead-laced paint Shakespearean tragedy: adequate training, and lay on children’s toys, and lap- there’s a hero and a villain. And out lines of responsibility top batteries bursting into and communication. Who flame should spur you into if you’re not the hero, guess should authorize a particu- recall readiness. what role you get to play? lar action? Who needs to Then there are general be kept in the loop? risks common to all busi- Richard Levick ” “When time is short,you nesses: internal fraud, non- Levick Strategic Communications, Washington, D.C. have to be able to commu- compliance, workplace nicate and get instructions harassment, and corporate governance issues. Do your staff and in the most efficient fashion,” says Grossman. In-house lawyers are directors understand their obligations? Is the proper oversight well positioned to serve as command central,helping to coordinate in place? the various initiatives and communicate with regulators, in-house personnel, and external service providers. 2 Have a plan ready dors that you may need to call on, such as PR experts, external Once your internal team is in place, line up the outside ven- Next, consider how to react if any of these situations come to pass. “Once a crisis occurs, it’s too late to be developing your response,” says Bates. counsel, and government relations specialists. Have backups as well, in case an unforeseen conflict of interest prevents your reg- For example, when the latest installments of the Harry Potter ular provider from acting for you. 32 CCCA Canadian Corporate Counsel Association SUMMER 2008