Crisis Management: How General Counsel Helps Navigate Reputational Risk

From data breaches to regulatory violations, there are countless situations that can quickly lead to a crisis for a business. This is especially true in the age of social media, where a single mistake or misstep could cause lasting harm to your image.

The support of general legal counsel can be invaluable in these times of crisis. For startups and businesses that lack their own in-house legal team, outside general counsel could help weather the storm.

Rapid Response

The first step in crisis management is understanding the legal implications of the event and how to contain the damage. General counsel can move quickly to determine what legal exposure you might have before you make any kind of immediate response. Of course, the fallout from a crisis might still be harmful to your organization even if you do not face any legal liability. Having a legal team to rapidly evaluate the situation can pay off substantially when things go badly.  

Coordinating the Company’s Public Response

The damage to your organization often hinges on how quickly and effectively your company communicates during a crisis. Your general counsel can shape public statements and media responses to avoid inadvertently admitting liability or violating disclosure laws. They can also work with public relations experts to craft a strategy on how best to respond publicly to the crisis as it unfolds.

Handling Your Internal Investigations

When a crisis stems from internal misconduct or compliance failures, general counsel often leads or oversees the investigation. They identify key facts, interview employees, and ensure that the inquiry is handled confidentially and legally. A properly managed internal investigation builds credibility with regulators, shareholders, and the public. It also helps leadership take swift corrective action, demonstrating accountability and a commitment to transparency. Without legal guidance, these efforts can appear disorganized or biased, compounding reputational harm.

Dealing with Regulators

Many crises involve interaction with government agencies, whether it’s a data breach triggering mandatory notifications or a compliance violation under federal scrutiny. General counsel acts as the company’s point of contact with regulators, ensuring you do not put your business at risk through a careless reply or offhand comment.

Protecting Your Interests Over The Long-Term

While managing the immediate fallout is critical, general counsel also plays a key role in protecting the company’s long-term interests. They assess the broader impact of the crisis on everything from contracts to your standing in the industry. The strategic advice from general counsel can help position the company for the path ahead.

Talk to One Oak Legal Today

Whether your organization is facing a crisis or simply preparing for the future, the support of general legal counsel can be invaluable. If your business lacks a dedicated legal department, outside general counsel might be the answer for you. Reach out today to learn more about your options.