Goshawk Investments discovers that their company software was hacked and that their clients' sensitive financial information may have been compromised. Jason, the head programmer, was able to quickly detect and shut down the malware that had infected their computer network. The media has already reported the story. However, Fawzia, the CEO, decides to delay making a public statement until the company has had a chance to run diagnostic tests and conduct interviews with senior IT staff about their security protocols. Several other members of the executive management team disagree with this decision. What is wrong with Fawzia's decision, as it relates to the crisis management process?
A)Strategic actions, such as planning the most effective response, should take precedence over evaluation and diagnostic actions.
B)A public response should be immediate to reassure clients and avoid greater damage to the company's reputation.
C)The executive management should focus on intra-office communication, while Jason and the senior IT staff handle the interviews.
D)Fawzia should make a statement to shareholders before issuing a public statement to the media.
E)Meeting with the IT staff at this point in time could send a negative message, undermining staff cooperation.

Question

Quizplus · Accepted Answer

In a crisis, it is important for companies to respond quickly and effectively to minimize damage to their reputation. Delaying a public statement can allow rumors and misinformation to spread, causing greater harm to the company's image. While diagnostic testing and interviews with IT staff are important in addressing the root cause of the problem, they should not take precedence over the need to reassure clients and stakeholders that the company is taking action to protect their information.

Goshawk Investments Discovers That Their Company Software Was Hacked and That