SVB Collapse: A Crisis Management Framework

While federal intervention seems to have averted the worst-case scenario for Silicon Valley Bank depositors, investors have been hit hard and the economy at large will certainly see longer-term implications.

Whether or not your company was directly impacted, the SVB collapse serves to remind all business leaders that they need to be able to handle crises effectively. When facing dire challenges in the consulting companies that I built and ran, I have found it helpful to apply the following 5-A framework:

• ASSEMBLE a cross-functional crisis management team
• ASSESS impacts and available resources
• ACKNOWLEDGE that it won’t be business as usual, and identify the meaningful steps that you can take
• ACT quickly to preserve cash flow and business continuity
• ANNOUNCE your response internally, externally, and frequently

Regardless of how the current crisis plays out, it won’t be the last one we see, and it highlights the importance of preparedness for businesses of all sizes to confront emergency situations. Watch the video to learn more about the 5-A framework.