Risks

When a media crisis is handled poorly, it can have the following consequences:

• The trust of investors, customers and the public can be undermined.
  
• A brand may suffer long-term damage because it becomes associated with a damaging news event.
• Employees may lose confidence in the leadership.
  
• A media crisis creates opportunities for rivals and critics to jump in and further denigrate the company or organization.
  
• Bad news can go viral, spinning beyond the company’s ability to contain it or effectively respond to it.
  
• Executives can lose the trust of their board, and be fired or forced to resign.

Opportunities

When a media crisis is handled well, it can result in the following:

• Companies and organizations can gain or maintain the trust of consumers and investors. 
• If they are candid and forthcoming with information, they can gain credibility with the media and the public. 
• Effective management can shorten the crisis, reducing the operational costs and the reputational damage.
• In some cases, you can turn a negative into a positive. JetBlue turned many angry passengers into loyal customers after the 2007 blizzard when it offered refunds and credits toward future flights.
• You can strengthen employee loyalty if you communicate with them throughout the crisis -- and you will need them on your side.