Crisis response should be done with confidence

THE current business environment is a dynamic one in which risks can escalate at tremendous speed, particularly with the rapid dissemination of information through the Internet and social media platforms. Even small or obscure companies can unexpectedly be propelled into the headlines if an incident goes viral.

Against this context, it is evident that even though most companies have taken precautions and implemented what might appear to be an adequate and effective risk management framework, unforeseen events can and will occur.

In recent months, companies from different industries in Singapore have experienced crises of varying degrees. Some of these affected reputation and market value, such as the short-seller attack against the Singapore Exchange (SGX)-listed Noble Group. Some were physical, such as the two consecutive power outages at SGX late last year that disrupted trading at the bourse.