Could Inadequate Crisis Preparation Open You to a Charge of Negligent Failure to Plan?

ASN works with the Chief Counsel and all members of the risk crisis management team to provide critical resources with regard to risk governance, risk assessment and regulatory requirements. Your concerns and our discussions include threat assessment, emerging tort liability issues, law enforcement and intelligence as well as security requirements, regulations and solutions.
 

In the 1980's negligent cases regarding foreseen dangers and/or inadequate security emerged in the courts. Over the past decade many claims for post-traumatic disorder and compensation have grown due to an increase in workplace violence.

Now, negligent failure to plan is another new legal concept that is likely to further stretch this expectation and is just another concern for the corporate officers and directors since they are charged with obligations as fiduciaries. 

Prudent risk management demands that organizations not only develop implement and rehearse a comprehensive company specific crisis management plan but may also have to prove that it is adequate and effective.
 

Therefore, in the event of a crisis the chief counsel needs to make sure that his/her manager(s) gather facts on an expedited basis in this super charged environment and disclose information to the media and its constituencies only after confirming, that these actions do not unduly compromise the company's legal position in future litigation and regulatory actions.

It is very important that the organization's legal team micro manage the preliminary investigation by coordinating all evidence gathering, witness interviewing and the relation with government attorneys because this will maximize the opportunity of being able to assert attorney-client privilege and protect from disclosure the non factual part of the investigation.

The cost for planning is far less than the loss from a single crisis.

(For more information see Legal Issues @ Disaster Recovery Journal Summer 2003)