Crisis Communication Playbooks

Effective crisis communication reduces stakeholder anxiety and prevents reactive decision-making. Research on investor behavior during the 2020 market volatility found that clients who received structured, timely updates from advisors were 40% less likely to make panic-driven portfolio changes compared to those receiving ad-hoc communications (Vanguard Advisor's Alpha, 2020). The point is: communication cadence is a risk management tool.

Communication Objectives During Crises

Every crisis communication should accomplish three things: acknowledge the situation, provide context, and outline next steps. Failing to address any element creates information gaps that stakeholders fill with speculation.

Primary objectives:

1. Acknowledge: Confirm awareness of the event and its potential relevance
2. Contextualize: Provide factual perspective on exposure and historical precedent
3. Direct: Specify what actions (if any) are being taken and when the next update will arrive

The mistake to avoid: leading with reassurance before acknowledging reality. Stakeholders detect dismissiveness, which erodes trust for future communications.

Audience Mapping: Who Needs What

Different stakeholders require different levels of detail and different communication channels. A one-size-fits-all approach either overwhelms some audiences or leaves others with insufficient information.

The 6-hour rule: Senior stakeholders (board, large institutional clients) expect initial contact within 6 hours of a significant market-moving event. Silence beyond 6 hours signals either unawareness or unpreparedness.

Message Cadence Framework

Communication frequency should match event severity and market volatility. Over-communication creates noise; under-communication creates anxiety.

Cadence Table by Event Severity

Practical example: During the February 2022 onset of the Russia-Ukraine conflict, portfolios with energy or European equity exposure warranted Level 3 cadence. Portfolios with minimal direct exposure could maintain Level 2.

Disclosure Considerations

Crisis communications must balance timeliness with accuracy. Regulatory requirements vary by jurisdiction and client type.

What to disclose:

• Known exposure to affected regions, sectors, or securities
• Actions taken (trades executed, hedges implemented)
• Timeline for next assessment or communication
• Whom to contact for questions

What to avoid disclosing:

• Speculative forecasts presented as fact
• Specific trading intentions that could constitute front-running concerns
• Confidential client information in group communications
• Political commentary or blame attribution

Compliance checkpoint: Before distributing any crisis communication to clients, review with compliance for:

• Accuracy of factual claims
• Consistency with prior disclosures
• Regulatory filing requirements (Form ADV amendments, material change notices)
• Record retention requirements

For SEC-registered advisors, Regulation S-P requires safeguarding client information even in crisis contexts. A 2021 SEC enforcement action cited an advisor who disclosed client positions in a group email during market stress (SEC, 2021).

Communication Template: Crisis Update

Use this template structure for client-facing communications during geopolitical events:

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SUBJECT: [Event Name] - Portfolio Update and Next Steps

Date: [Date] From: [Authorized Sender] To: [Client/Distribution List]

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1. Situation Summary (2-3 sentences)

State what happened, when, and the current status. Use neutral language.

Example: "On [date], [description of event]. As of [time], markets have responded with [specific data: index moves, currency changes]. Trading is [normal/disrupted]."

2. Portfolio Exposure (3-5 sentences)

Quantify relevant exposure. Use percentages and dollar amounts where appropriate.

Example: "Your portfolio has [X%] direct exposure to [affected region/sector]. This represents approximately [$X] of your total portfolio value. Indirect exposure through [multinational companies, supply chain dependencies] is estimated at [Y%]."

3. Actions Taken (Bullet points)

List specific actions, or explicitly state if no action is warranted.

Example:

• Reviewed all positions with [region/sector] exposure
• Confirmed [hedging positions] remain in place
• No trades executed at this time; rationale: [brief explanation]

4. Our Assessment (2-3 sentences)

Provide context without predicting outcomes.

Example: "Based on historical precedent from [comparable event], market volatility typically [pattern]. We are monitoring [specific indicators] for signs of [escalation/stabilization]."

5. Next Steps and Contact

Specify when the next communication will occur and how to reach the team.

Example: "We will provide an update by [date/time]. For urgent questions, contact [name] at [phone/email]."

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Cadence Checklist: First 72 Hours

Use this checklist to ensure communication discipline during the critical first 72 hours of a crisis.

Hour 0-6

• Internal team alerted via designated channel
• Initial facts gathered (what, when, where, market reaction)
• Preliminary exposure assessment completed
• Draft communication prepared for compliance review
• Spokesperson/authorized communicator designated
• Board/Investment committee notified

Hour 6-24

• Compliance-approved communication sent to Tier 1 stakeholders (board, large clients)
• Client service team briefed with talking points
• Q&A document drafted for inbound inquiries
• Media statement prepared (if external attention expected)
• Next update scheduled and announced

Hour 24-48

• Broader client communication sent
• Inbound inquiry log reviewed for common questions
• Q&A document updated based on actual questions
• Portfolio exposure analysis refined with more granular data
• Decision made on any portfolio actions

Hour 48-72

• Second update sent to all stakeholders
• Cadence adjusted based on event evolution (escalation or de-escalation)
• Documentation of all communications saved for records
• Lessons-learned notes drafted for playbook refinement

Common Implementation Mistakes

Mistake 1: Waiting for Perfect Information

Teams delay communication hoping to have complete answers. Result: Stakeholders interpret silence as incompetence or indifference.

Fix: Send an initial acknowledgment within 6 hours, even if it only confirms awareness and states when substantive information will follow.

Mistake 2: Inconsistent Messaging Across Channels

Different team members provide conflicting information to different clients.

Fix: Designate a single source of truth (one document, one authorized communicator) and require all client-facing staff to reference it.

Mistake 3: Overreacting in Early Communications

Initial communications predict dire outcomes or promise aggressive action. When reality is milder, credibility suffers.

Fix: Use conditional language ("based on current information," "we are monitoring for") and avoid definitive predictions.

Maintenance: Keeping the Playbook Current

A crisis playbook is only useful if it reflects current contact information, regulatory requirements, and team responsibilities.

Quarterly review:

• Verify all contact lists (client emails, team phone numbers, media contacts)
• Confirm regulatory filing thresholds remain accurate
• Update historical precedent examples with recent events
• Test communication channels (does the distribution list work?)

Annual tabletop exercise:

• Simulate a geopolitical crisis scenario
• Walk through the playbook in real time
• Identify bottlenecks (compliance approval delays, unavailable personnel)
• Document improvements and update procedures

Implementation Checklist

Essential (Start Here)

• Designate crisis communication team and backups
• Build tiered stakeholder contact lists
• Draft template communications for Levels 1-4 severity
• Establish compliance review process with target turnaround times
• Create internal distribution channel for real-time team coordination

High-Impact Refinements

• Develop Q&A document with 20 most likely stakeholder questions
• Pre-approve boilerplate language with compliance for faster deployment
• Set up monitoring alerts for relevant geopolitical news sources
• Document escalation criteria (what triggers Level 3 vs. Level 2)
• Schedule quarterly playbook reviews

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Related: Building a Risk Event Dashboard | Scenario Planning Workshops for Investors | Mapping Geopolitical Risk to Asset Classes

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Sources: Vanguard (2020). Advisor's Alpha: Quantifying the Value of Financial Planning. | SEC (2021). In the Matter of [Redacted] Investment Advisors, Administrative Proceeding.