Managing Public Risk and Political Opportunity

Corporations today are at risk. Not only are they at risk but they are vulnerable to regulatory agencies, legislators, shareholders and customers.

When confronted with evidence or allegations of potential wrongdoing the company should first understand all the accusations and facts, monitor what is being said, and then respond deliberately & thoughtfully and directly.

Attorneys are often a corporations first responder. That person who receives the call about a problem, investigation or allegation that could potentially put the company's brand and their corporate reputation at risk. Often times, the attorneys are too focused on the legal risk and not focused at all on the public or political risk.

While the company's corporate counsel is working with their legal team of in house and outside counsel, they should be working in tandem with the public relations team, including social media managers to orchestrate a response no matter what the issues or facts are. In the public, sometimes perception trumps reality, and a company must be ready to respond. Therefore, having a PR team ready to get engaged with their legal team in the first moments a crisis hits, will most likely become that make it or break it moment in how that company will emerge from the crisis.

Therefore, it is helpful for some PR professionals who just happen to be attorneys to work as an attorney with attorneys handling any investigation, manage the response and protect the brand and brand leaders. An attorney, skilled and experienced in PR and media relations is in a better position to work as a member of the legal team to protect attorney-client privilege and to add additional credibility to the response.

Elections are about change, Public Affairs helps manage the risk during that change

Elections are about change. In fact, Change is what President Barack Obama campaigned on four-years ago and won. And change is at the core an effective public affairs strategy. Public affairs professionals help companies and individuals navigate the changing landscape in capitals across the world, and help them better understand the politics, the personalities and the policies that affect their industry, company, employees and other key stakeholders. For example, what will a new administration mean for your business?  Will the leadership in a new Congress provide a Third Way, or does that new committee chair have priorities counter to my industry?

Public affairs professionals help CEOs understand the dynamics of governments in transition and help them build relationships with key decisions-makers who will have an impact on their business goals.

Public affairs professionals, also help companies manage risk -- Political risk and risks to their reputation in a constantly changing legislative and regulatory environment. You just never know who will get elected and who will sit in leadership positions. So you should know who these folks are and proactively work to develop meaningful relationships with them, should you ever need their help in the future.

Managing Political Risk in an Election Year

There are some things we can control and others we cannot. But we are all susceptible to risk. Some are natural, like the Tsunami that ravaged the pacific, the Quake that destroyed Japan or the Tornado that ripped through the south. Others are economic, such as the credit crises or the recession.  While others are political. While we may not know when we will be hit by a crisis, we can plan and prepare for them by monitoring the news, engaging our business, political and economic leaders, meeting with our employees and vendors on a regular basis and talking to others to  see where are vulnerable. With 2011 now behind us, we need only look forward, yet a new year brings new crises. In fact, on January 3, Iowa voters will turn out to support their candidates for the GOP Presidential nomination and so beings a year of extreme political risks. Candidates will say anything to win a vote, promise to make key decisions without the advise and consent of a Congress, while we have a Congress that will delay important issues only as to avoid any political fall out, leaving the issue yet again for another day. As business owners, we need to be mindful of the politics behind the policy, the issues behind the people and the issues that affect our bottom-line and ability to build a sustainable company. It is our job as business owners to ask the candidates the difficult questions about job creation, business development, creating a sustainable economy, long term solutions over short-term fixes and holding those that we elect or that are elected, accountable for improving our economy.

However, with all these uncertainties, it is important to identify and asses risk across the country. Public affairs plays a vital role in identifying, managing and avoiding risks.  Public Affairs professionals can spot risks that may be overlooked. They are familiar with the big picture, know the politics behind the issues and the key influences behind them. Public affairs professionals are able to offer a company a broad view as to how they fit or could fit into the big picture and where risks may exist now or down the line, so companies a can better prepare and plan.

They can also communicate the companies key messages to key decision-leaders and influencers in the political sphere, as well as to the public through the media. Companies can mitigate risks by improving stakeholder-relations with government leaders and through community engagement. Risks can emerge whenever decisions are made.

A New Year and an election year is the perfect opportunity and excuse to become more engaged in the political process, and develop deeper relationships with the candidates or elected officials. It will help a company protect and enahnce their reputation in the media and before the public, while raising awareness for the products or services it provides. To begin, we suggest:

• Building relationships before you need them
• Monitoring legislative, regulatory and political action
• Attend fundraisers for candidates you support -- not to win influence but to develop relationships and expand your network
• Talk openly about the issues that matter to you personally and to your company
• Invite candidates to visit you in your office or plant to see first hand the work you do, the jobs you create and the benefits you provide to the community