Many companies often think a crisis will never happen. Believing this, they implement PR and crisis management as last resort measures, which are needed when the crisis has already occurred.

However, this approach is seriously flawed. Effective PR is a powerful tool that should be used before a crisis to mitigate risks and prepare for potential challenges. Too often, companies wait until reputation is already damaged, although the right strategy could have prevented its consequences.

A situation involving Silicon Valley Bank (SVB) at the start of 2023 is a clear example. The bank, once at its peak with profits exceeding $200 billion, collapsed within weeks, and without a clear anti-crisis strategy implemented in its PR plan. Although the main reason was falling investment costs and a massive outflow of startup funds, the roots of this fall were in failed communication.

How did SVB react to the outflow? It did nothing. The management did not admit their inability to handle the situation and did not explain what was happening to the clients. It did not use social media to explain the problem, make a clear statement, or try to prevent the panic. SVB hoped the crisis would somehow resolve itself, but instead, a reputational fire destroyed the entire financial system.

While this is not the only example, many companies still do not understand that PR is not a fire brigade that is called when everything is already burning.

To avoid such mistakes, companies should follow several key recommendations:

1. Engage with the audience regularly. Rather than waiting until a crisis starts, managers should communicate with the audience constantly, even when there is no problem.

2. Integrate risk management into PR strategy. A strong PR plan should include clear protocols for potential challenges, ensuring that everyone knows their role and can act swiftly if needed.

3. Practice transparency. Being open about the companies’ activities, the steps taken to mitigate risk, and how businesses respond to customer concerns builds long-term trust. When speaking about financial and fintech companies, reports and disclosures can serve as a tool for transparency.

4. Use real-time sentiment monitoring. When actively tracking how people are reacting online and what they are saying on social media, the company can take measures instantly.

5. Assess when to respond. Businesses also have to understand that not every negative moment requires an immediate reaction. A comprehensive PR strategy allows you to take into account what needs to be worked out publicly and what needs to be done using other methods.

6. Ensure leadership visibility. When executives regularly engage with the public and industry discussions, they establish themselves as credible voices. This helps them control the conversation and the narrative rather than simply react to it. If a crisis occurs, this leadership presence, along with a timely and clear response from the company’s top executive, is exactly what clients expect and rely on the most.

As a result, companies that only use reactive anti-crisis PR are at significant risk, including the potential loss of their business. With a comprehensive PR strategy that includes crisis response, it is easier to minimize the damage to the company and its reputation. If the crisis cannot be prevented, a good reputation can help to survive it with fewer losses.