Crisis and emergency management is an important skill and technique to analyze and use across several industries.
The data-driven innovation such as social listening insights has boosted the strategic decisions made during the crisis and helped in the better and more balanced management of resources.
As we move into a new year with developments and technological advancements, here are some crisis management trends to look forward to in 2023.
Understanding Current Situation
Before we check out the expected trends, we need to understand the current situation.
While many marketing, public relations, and other enterprises have realized the problem at hand and the possibility of an imminent crisis, many organizations still have yet to understand the seriousness of it all and employ management skills.
So, keeping in mind the extreme differences in crisis awareness among many enterprises, here are some of the predicted crisis management trends for 2023. The list includes cyber attacks threat, single-issue crisis management, online reputation management, and more.
Let us discuss them in detail.
More than risk management, it is a competitive edge for enterprises
When we talk about crisis management trends in 2023, a common factor we should observe is that enterprise risk management (ERM) is viewed as more than just a way to mitigate the crisis.
This is a vital trend because companies today view crisis management as a competitive advantage rather than just a set of methods that could help them avoid or tackle bad situations.
While we talked about the previous two years, ERM was mainly about mitigating the pandemic damages and transforming to the digital space, keeping in mind the risk appetite.
However, with slow growth, an understanding of the digital space, and a more sustained atmosphere, companies today have started viewing crisis management as a competitive tool to stay ahead in the race.
So, there are talks within companies and among chief risk officers (CROs) about minimizing risk or seeking risk management as a competitive advantage.
So, one of the trends we could or should observe in 2023, or at least in the next few years, is how companies treat risk with a transformational approach instead of a traditional one.
Cyber-attacks will remain the biggest threat
Unfortunately, one of the most predictable trends is that cyber-attacks will remain the most significant threat for enterprises this year.
Given the vast and sudden development in the digital world, our security at the cyber level needs more protection.
For example, the latest ransomware is nearly 60 times more destructive than the ransomware of 2015. So cybercrime is going to be one of the biggest risks in 2023.
In addition, it is said that cybercrimes will cost the global economy 10.5 trillion dollars annually by 2025.
Single-issue crisis management
Another common trend that could extend into 2023 is that more enterprises will invest in single-issue crisis management playbooks, focusing on their high-impact risks.
Since there has been an increased awareness about emergencies, crises, and risks in the past few years, there has been an increase in corporations investing in a series of single-issue crises.
This focus on single-issue crises will help in developing detailed response plans tailored to that particular crisis.
From cyberattacks and workplace facilities to executive misconduct and sponsorship controversies, enterprises have a lot at stake when discussing their top reputational risks.
Understandably, reputation management will gradually emerge as a trend that people in the business world will sit down to discuss.
Reputation management has not been considered a serious issue at the crisis leadership table, but it is set to slowly change in 2023.
The “It will never happen to us” thought will continue in many enterprises
While some organizations have begun to understand the market, risks, and crisis possibilities, most enterprises have yet to understand the crisis and learn to manage it entirely.
Keeping this in mind, many organizations will still maintain the attitude that “it will never happen to us” when responding to an immediate crisis in 2023.
While it would be amazing to see companies come forward and take necessary measures, the trend of major companies not having crisis-ready methods will continue into 2023.
Integrating risk management with digital transformation
When discussing risk management, the first few steps concern understanding the organization’s complexity and management strategies.
Only when the intricate details are precise can an enterprise develop a proper crisis management plan.
But with the development of the online sphere, which propelled digital transformation, we have also got to understand the complexity of the technology, data, and operating environments.
So, the trend in 2023 will be about integrating risk and crisis management with digital transformation.
At a time when enterprises are focusing on digital transformation and trying to create a conducive environment that supports the transformation, integrating crisis management with digital transformation becomes all the more crucial.
The IT leaders should understand that they should work with other departments to assess the impact and strategize plans to mitigate risks.
So, enterprise risk management comes full circle only when integrated with digital transformation and assessed following the company’s risk appetite.
The rise in emergency communication systems
One of the fundamental troubles that enterprises face when facing a crisis or emergency is that they might not be able to communicate seamlessly because of the problems.
So, it is necessary to establish a system or find tools to help during emergencies. The communication tools to mitigate the risks are increasing, and many companies adopt tools that create infrastructure-independent voice communication systems.
Therefore, the rise in emergency communication systems will be a major trend in 2023. These enhanced communication tools include the common ideas of enhanced wireless, satellite, and 5G connectivity.
Hence startups offering such emergency communication tools will create more creative communication methods. Social media, an affordable and effective medium to promote awareness, is also expected to rise this year.
Risk mitigation tools multiply
Measurement tools that help detect emerging crises or risks, similar to better communication, can help mitigate risks.
Such tools for actively measuring and rescuing risks will get better. These tools will also improve in terms of internal and external risk-sensing tools.
These tools add more value as they help detect patterns of risk or crises.
GRC meets ESG
A significant trend in the upcoming year will be the merging of GRC and ESG. GRC means governance, risk, and compliance, and ESG means environmental, social, and governance agendas.
So, we can expect a rise in scenario planning and assumption testing capabilities. So, connecting the dots between enterprise risk and the environmental, social, and governance agendas brings about a change in the way many enterprises think about crises and mitigating the risk.
It promotes interactive workshops that enable cross-functional thinking about risk, which in turn impacts the planning and strategies of these enterprises. When one considers both ESG risk planning and GRC strategies, they are exposed to a new world of risk initiatives.
Cyber risk quantification
Preparedness is one of the best ways to tackle a crisis. As we all know, the saying goes, “Prevention is better than cure. We must stay prepared and try to prevent the crisis from happening.
It is here that preparedness comes in handy because, even when you can’t prevent it, curing doesn’t take much time, money, or work. So, a trend that companies will observe in 2023 is cyber risk quantification.
There will be an increased demand for cyber risk quantification services because the executives also understand that simple quantification and steps like customizing cybersecurity rules can go a long way in protecting their company during a cybersecurity threat.
This assessment process also helps them understand the monetary value of risk mitigation, budget constraints, and many more financial aspects.
Contextualized Risk Monitoring: What do different officers seek from crisis management?
In addition, even in an enterprise that wants to plan and strategize its crisis management, the different officers seek to do different things with risk management analytics.
For instance, if CEOs want to drive secure business transformation using the crisis management plan, CFOs might want to reduce business risks and the cost of breaches. Similarly, Chief Information Security Officers (CISOs) might want to run resilient business operations. In contrast, Chief Information Officers (CIOs) might want to make security and crisis management foundational elements of IT strategy.
Many organizations today have come up with numerous crisis management plans. These enterprises are ready to take management methods seriously and build greater crisis preparedness.
They are investing in the management plans and working towards developing the necessary skills, structures, and protocols. But what matters is that these companies do not end up “greenwashing” and instead focus on making measurable progress.
So in 2023, most organizations are expected to rise and understand the need of the hour to have a proper plan and protect the enterprise against all odds.