Financial Services Reputation

Client Overview

A publicly traded financial services firm became the subject of a regulatory investigation related to certain business practices. The investigation threatened to damage the company's reputation, erode customer trust, and negatively impact shareholder value.

The Challenge

The company faced several critical challenges:

• Managing public disclosure of the investigation while complying with regulatory requirements
• Maintaining investor confidence during a period of uncertainty
• Protecting the company's reputation with customers and partners
• Addressing media inquiries without exacerbating the situation
• Preparing for various potential outcomes of the investigation

Our Approach

We developed a comprehensive crisis management strategy:

• Crisis Response Team: We established a dedicated crisis response team that included IR and PR professionals, legal counsel, and key executives.
• Stakeholder Communications Plan: We developed tailored communications for different stakeholders, including investors, customers, employees, and regulators.
• Disclosure Strategy: We created a disclosure strategy that balanced transparency with legal considerations, ensuring compliance with regulatory requirements.
• Media Relations: We implemented a proactive media relations approach to manage the narrative and correct inaccuracies.
• Investor Engagement: We conducted targeted outreach to key investors and analysts to address concerns and maintain confidence.
• Scenario Planning: We developed response plans for various potential outcomes of the investigation.

The Results

Beyond these quantitative results, the company also experienced qualitative improvements:

• Maintained customer trust and saw minimal account closures
• Strengthened relationships with key stakeholders through transparent communications
• Established a robust crisis management framework for future issues
• Positioned the company as committed to compliance and best practices

Key Takeaways

This case study demonstrates the importance of:

• Rapid response and coordination between communications and legal teams
• Transparent communications that balance disclosure with legal considerations
• Proactive engagement with key stakeholders during a crisis
• Consistent messaging across all communication channels
• Preparation for various scenarios to enable quick decision-making