Why Crisis Preparedness Isn't Optional For Business Leaders

By: LaMar Holliday, CEO | Published: Feb 27, 2026 | Article featured on forbes.com

Most business owners don’t wake up thinking "today feels like a great day for a crisis."

And yet, crises rarely announce themselves. They interrupt. They disrupt. And they seem to arrive at the exact moment leadership is already stretched thin.

It often feels like there’s a new organizational crisis in the headlines every day. Government agencies, nonprofits, startups and Fortune 500 companies are all navigating the same reality. What I believe has changed isn’t just the frequency of crises, but the speed at which they escalate and how quickly reputations can be reshaped—for better or worse.

In today’s environment, the absence of a crisis plan is itself a risk. I’ve worked with organizations that spent years building trust with their customers, communities and stakeholders, only to see that trust erode in a matter of days, sometimes hours. Often, it wasn’t the crisis itself that caused the most damage. It was the lack of preparation. Messaging was unclear. Decisions were delayed. The wrong person spoke publicly, or no one spoke at all.

Here’s the reality many business owners don’t like to hear: Silence, confusion or defensiveness can damage your reputation faster than the issue that triggered the crisis in the first place. The organizations that come out stronger aren’t the ones that avoid crises altogether. They’re the ones that plan for them.

Crisis planning is often misunderstood as pessimistic or unnecessary. Some leaders will say, “We’ve never had an issue,” or, “We’ll deal with it if something happens.” That mindset may have worked years ago, but it doesn’t work now.

Crisis preparedness isn’t about assuming the worst. It’s about being a responsible steward of your organization, your people and your brand. It’s about having clarity when emotions are high and the margin for error is small. A strong crisis plan gives leaders permission to act decisively instead of reactively.

How To Get Started

Make a plan.

You don’t need a hundred-page binder sitting on a shelf. What you need is a clear, practical framework that can be activated quickly. At a minimum, every organization should have a defined plan that outlines who makes decisions, how information flows and what happens in the first 24 hours. If your leadership team can’t answer that question confidently, the plan isn’t ready.

Establish a response team.

Equally important is having a small, focused crisis response team. Having more people does not lead to better decisions. In fact, it usually slows them down. A crisis team should include no more than four individuals with the authority to act in real time. Their role is to activate the plan, align internal stakeholders and manage communications so the rest of the organization can stay focused on operations.

Prioritize scenario planning.

Scenario planning is another often-overlooked step. Leaders don’t need to predict every possible crisis, but they do need to think through the most realistic risks their organization faces: operational failures, leadership issues, data breaches, safety concerns or reputational threats. The goal isn’t to script every response, but to avoid making critical decisions for the first time under pressure.

Update the plan.

A crisis plan should also be a living document. Organizations change. Teams evolve. Risks shift. Reviewing and updating your plan quarterly ensures it stays relevant. An outdated plan can be nearly as dangerous as having no plan at all.

Decide who will be your spokesperson.

And then there’s the issue of who speaks. Not everyone should be a spokesperson during a crisis, and the CEO isn’t always the best messenger. Designating and training spokespeople ahead of time helps ensure messages are delivered with clarity, empathy and credibility. What you say and how you say it will shape public perception long after the crisis has passed.

The Takeaway: Don't Delay Planning

Many business owners delay crisis planning because it doesn’t feel urgent. There’s always something more immediate demanding attention. But the cost of preparation is always lower than the cost of recovery. Legal expenses, lost contracts, staff turnover, damaged credibility and fractured stakeholder trust are far more expensive than investing time in readiness.

One of the biggest misconceptions about crisis response is that leaders need to have all the answers immediately. They don’t. What stakeholders want is honesty, consistency and visible leadership. Prepared organizations communicate early, acknowledge uncertainty and commit to transparency. That approach doesn’t weaken trust; it strengthens it.

Crisis preparedness is no longer a “nice to have.” It’s a leadership responsibility. When preparation meets activation, organizations protect more than their reputation. They protect their people, their mission and their future.

The question isn’t if a crisis will happen. It’s whether you’ll be ready when it does.