What a CEO Should Do in the First 24 Hours of a Crisis
In the first 24 hours of a crisis, a CEO should confirm the facts, form a small decision team, appoint one spokesperson, tell the people closest to the problem first, and issue a short holding statement. Accuracy and consistency matter more than speed. Avoid any irreversible statement or decision until the facts are confirmed.
This guide sets out the first day in order, hour by hour, for CEOs and board members facing a serious issue.
By Scott Thompson, Founder of The Reputation Agency. Scott is a former journalist with more than 25 years in corporate communication and executive advisory, including issues management for the Business Council of Australia and crisis management in large consultancies.
Hour 1: stop, assess and secure the facts
The first hour sets the quality of every decision after it. Do nothing irreversible. Write down what you know, what you assume and what remains unknown, with a time against each item.
Name one person to own the fact repository. That person keeps a single running record of events, decisions and times.
Separate confirmed facts from assumptions. List open questions and who is finding the answers.
Tell legal counsel and your insurer early. Check your policy for notification terms, because some run to short windows.
Preserve records. Instruct staff not to delete emails, messages or files linked to the matter.
Defer decisions about cause, blame and personnel until the facts are confirmed.
Hours 1 to 4: assemble the team and set roles
Form a small group with clear decision rights. Larger groups slow every approval.
A workable core team has five seats:
the CEO or crisis lead, who decides
legal counsel
the head of communications
the leader of the affected area
an adviser outside the line of fire, who tests assumptions
Agree who approves each statement and how quickly. Set a meeting rhythm, for example every two hours, and write down every decision with its time.
Brief the Chair early. If your company is listed, ask counsel to check continuous disclosure obligations before any public statement.
Hours 4 to 8: map stakeholders and issue a holding statement
Decide who hears what, and in which order. Employees should never learn about their own organisation from the media.
A sensible notification order:
People directly affected
Employees
Regulators, where a duty to notify exists
Customers, partners and investors
Media and the public
Write a holding statement once the order is set. Keep it short and factual. A holding statement does four things:
acknowledges the situation
says what you are doing now
commits to a time for the next update
names a contact point
Leave out speculation on cause, blame and numbers you cannot confirm.
Hours 8 to 16: prepare the spokesperson and align every channel
Choose one spokesperson. The CEO fronts the media when the matter is severe and the CEO is ready. Otherwise a senior executive speaks, with the CEO visible in the response. Spreading the role across several leaders produces inconsistent answers.
Prepare the spokesperson for the hardest questions, then rehearse them aloud:
What happened, and when did you know?
Who is affected, and what are you doing for them?
Who is responsible?
What happens next, and when will you update us?
Check every channel against the holding statement: website, social accounts, switchboard, staff briefings and customer service scripts. Log every media and stakeholder enquiry, and give each a time for a reply.
Hours 16 to 24: lock in the next 48 hours
Review what has changed since the holding statement. Update the fact pattern, and issue a second statement at the time you promised.
Before the first day ends:
Brief all staff on what is known, what is not, and who speaks for the organisation.
Set the time of the next team meeting and the next public update.
Assign owners for regulator, customer and investor follow-up.
Roster decision-makers to sleep in shifts. Tired leaders make poor calls.
Record every decision and its reason for the after-action review.
Five mistakes CEOs make in the first 24 hours
Going silent. Silence lets others define the story. Acknowledge the situation within hours, even with incomplete facts.
Explaining too much. Long statements invite error. State what you know and when you will update.
Speculating on cause or blame. Early guesses become quotes. Wait for confirmed facts.
Mixed messages. Leaders who speak separately contradict each other. One spokesperson, one source of truth.
Handing the whole matter to communications. The CEO owns the decisions. Communications carries them out.
When to call a crisis adviser
Call as soon as a risk emerges. Early advice reduces impact and cost.
The Reputation Agency's senior advisers support boards and executive teams through the first 24 hours and the weeks after. Read about our crisis management consultants in Melbourne, or book a confidential 30-minute conversation. For an urgent matter, call +61 403 241 128.
Common questions
How quickly should a CEO respond to a crisis?
Acknowledge the situation within the first few hours, even when facts are incomplete. Regulators and stock exchanges set their own deadlines, and some run shorter. Confirm each one with counsel in hour one.
Should the CEO be the spokesperson?
Use the CEO when the matter is severe and the CEO is prepared. Otherwise appoint a senior executive. Whoever speaks, keep to one spokesperson.
What goes in a holding statement?
Acknowledge the situation, say what you are doing now, commit to a time for the next update and name a contact point. Leave out speculation on cause and blame.
Who belongs on the crisis team?
The CEO or crisis lead, legal counsel, the head of communications, the leader of the affected area and an adviser outside the line of fire.