Who has the most to lose? The simple answer is the chief executive officer (CEO). According to Payscale.com, a CEO’s salary in Malaysia is somewhere between RM250,000 to RM820,000 per year. That is a serious amount of money to put at risk because of a failure to manage a crisis properly. This does not take into consideration the share value or the reputational cost to the entire organisation.
News Hub Asia, in our series on corporate resilience in the face of crisis, we spoke with industry leader, Nordin Abdullah, who is the founder of the Crisis Management Centre, which operates regionally out of Kuala Lumpur, Malaysia. Read his comments below.
In the current global climate, crises come in all forms—cybersecurity threats, natural disasters, political instability, public health emergencies, and reputational damage. As a CEO, it is no longer enough to simply respond to a crisis. You must proactively equip your team to handle the unexpected. That needs to have been documented and discoverable in a forensic review. Crisis management training is not just a precaution; it is a critical investment in the future of your organisation.
Here are five key reasons why every CEO must prioritise crisis management training for their teams:
- Your Duty of Care as a Leader: CEOs hold the ultimate responsibility for the welfare of their employees. The moment a crisis strikes, employees look to leadership for direction. Providing crisis management training ensures that your team knows how to respond, minimising the risk of panic and poor decision-making. A well-prepared team is better able to safeguard not only themselves but also your organisation’s assets and reputation. Failure to invest in such training may lead to catastrophic outcomes, both legally and financially. The consequences of ignoring your duty of care could be severe.
- Inaction Creates Job Insecurity: In the absence of clear crisis protocols, your employees may feel uncertain and unprepared, leading to insecurity about their roles. This fear often manifests in lower morale, decreased productivity, and higher turnover rates. Employees need to feel that their jobs are secure, and that the organisation is capable of weathering any storm. Regular crisis management workshops help to foster a sense of confidence and stability within the workforce. Without this preparation, the uncertainty created by an unexpected event could erode trust and lead to internal chaos. The question is: have you done a crisis scenario planning workshop recently?
- Crises Can Strike Anytime, Anywhere: Whether it is a financial downturn, a supply chain disruption, or a public relations disaster, crises can happen without warning. The speed at which a crisis escalates often leaves little time for decision-making. That is why training is essential. When your team has already practised different crisis scenarios in workshops, they will be more prepared to act decisively and mitigate risks. Crises do not wait for you to be ready, so do not wait until one happens to begin preparing. One area that has seen an increase in recent years in Malaysia is the area of activist aggression towards the corporate sector. Specific training exists to deal with this for the broader team and corporate leaders.
Image for illustrative purposes only. | Illustration by marrio31 from Getty Images Signature via Canva Pro / NHA File Photo
- Protecting Your Corporate Reputation: In today’s digital age, news of a company’s mishandling of a crisis can spread like wildfire, severely damaging your reputation. Failure to manage a crisis properly stays with you for the rest of your career. CEOs must understand that their company’s reputation—and their personal legacy—can be significantly harmed by a poor response to a crisis. By training your team to manage crises effectively, you protect your brand and position your company as one that can be trusted. At the same time, CEOs may require spokesperson training or a refresher on how to deal with aggressive media during a crisis. There is a need to use the right level of expertise to do this training; someone who has been in the centre of a crisis before.
- Save Time, Money, and Jobs: The Crisis Management Centre’s internal research suggests that staff attrition rate either through leaving the organisation or no position because the company wound up is higher than 43 per cent post-crisis. Investing in crisis management training now can save your company a significant amount of time and money in the long run. Well-prepared teams can detect potential crises early and prevent them from escalating into major financial or operational disasters. Additionally, employees who are trained to handle crises are more likely to feel valued and secure in their roles, reducing turnover and retaining critical talent. Proper crisis preparation is an investment that yields high returns in terms of financial savings and employee loyalty.
As a leader who is always front and centre, a CEO is responsible for ensuring that their team is as ready as possible to face the unpredictable. If you have not yet begun crisis management training, now is the time. The future of your company, the future of your career and the livelihoods of your team depend on it. Speak to our team at the Crisis Management Centre today. 
