[CM] [OCBC] [E1] [C11] Post Crisis - Crisis Recovery

Chapter 11

Post-Crisis – Crisis Recovery and Post-Crisis Management at OCBC Bank

Introduction

In the aftermath of a crisis, organizations must transition from a reactive, crisis-response mode to a recovery phase.

This phase is crucial for restoring operations, supporting employees and stakeholders, and rebuilding trust and reputation.

Post-crisis management is a delicate and multifaceted process; when executed correctly, it can significantly impact an organisation's long-term resilience.

At OCBC Bank, ensuring a smooth transition from crisis to recovery is integral to sustaining its operational continuity and protecting its reputation as one of Southeast Asia's leading financial institutions.

1. Transition from Crisis to Recovery

The first step in post-crisis management is the smooth and effective transition from crisis response to recovery. This shift marks the end of immediate emergency actions and the beginning of efforts to restore business operations to normal or improved levels.

Key Steps

• Assessment of Crisis Impact: The transition begins with a comprehensive evaluation of the crisis's impact on the bank's operations, reputation, and stakeholders. This includes a review of business continuity actions taken during the crisis, identification of any ongoing challenges, and a clear understanding of resources required for recovery.
  
  
• Recovery Prioritisation: OCBC Bank must identify critical services that need to be prioritised for restoration, such as customer-facing services (e.g., online banking, branch operations), IT infrastructure, and operational back-office functions. A Recovery Time Objective (RTO) must be established for each critical business function to ensure that it is restored promptly.
  
  
• Communicating the Transition: Communication plays a pivotal role in this phase. Clear communication to internal and external stakeholders, including employees, customers, regulators, and investors, is essential. Stakeholders should be informed about the status of recovery, expected timelines, and any ongoing disruptions. Communication should be transparent and consistent to prevent misinformation and alleviate concerns.
  
  
• Monitoring Recovery Progress: OCBC must establish mechanisms to track the progress of recovery efforts. This includes regular meetings with recovery teams, setting up a recovery dashboard to monitor key performance indicators (KPIs), and reporting updates to senior management.

2. Psychological First Aid and Stakeholder Support

In the wake of a crisis, one of the most critical aspects of recovery is addressing the psychological and emotional needs of employees, customers, and other stakeholders who have been affected by the crisis.

Psychological first aid (PFA) offers support to individuals in distress and helps mitigate the emotional impact of a crisis.

Key Components

• Employee Support: Employees are often at the frontline of a crisis and may experience stress, trauma, and burnout. OCBC Bank should provide psychological support and counselling services to staff, either internally or through external providers. Employee assistance programs (EAPs) and stress management workshops can help employees cope with the aftermath of the crisis.
  
  
• Customer Communication and Support: Customers who were directly impacted by the crisis—whether through service disruptions, data loss, or financial uncertainty—require clear and empathetic communication. OCBC should offer support through customer service teams trained in handling sensitive situations, providing clear information on recovery timelines, and offering remedies where necessary (e.g., fee waivers, loan restructuring).
  
  
• External Stakeholders: In addition to employees and customers, other external stakeholders, such as investors, regulators, and partners, also need to be engaged. OCBC must offer reassurance through transparent communication, assuring stakeholders that recovery plans are in place and progress is being made.
  
  
• Community Engagement: In some cases, a crisis may also have a broader social impact. If the situation has affected the local community, OCBC Bank should consider engaging in corporate social responsibility (CSR) initiatives to support recovery, such as charity drives or disaster relief efforts. This demonstrates the bank’s commitment to the community's well-being and fosters goodwill.

3. Reputation and Brand Management After a Crisis

One of the most significant long-term challenges after a crisis is rebuilding the organisation’s reputation. OCBC Bank’s ability to regain trust among stakeholders, particularly customers and investors, is vital for its recovery.

Effective brand management in the post-crisis phase requires a coordinated effort across the bank's communications, marketing, and leadership teams.

Key Strategies

• Transparent and Honest Communication: Following a crisis, OCBC must engage in open and honest communication about the crisis’s impact, the response efforts, and the steps taken to prevent recurrence. Transparent communication helps restore trust and reduces speculation, ensuring stakeholders understand the bank’s commitment to continuous improvement.
  
  
• Restoring Customer Confidence: The bank must rebuild customers' confidence. This can be achieved through direct outreach (e.g., emails, calls, or meetings), offering compensation where appropriate, and showcasing improvements in systems or procedures to prevent future crises. If the crisis involved operational disruptions, OCBC must highlight the steps taken to enhance resilience, such as investing in more robust technology infrastructure or introducing more comprehensive risk management practices.
  
  
• Reaffirming Brand Values: Rebuilding the brand also involves reiterating the bank's core values, including trust, security, and a commitment to excellent customer service. OCBC should utilise its corporate communications channels to reinforce these values and demonstrate how they have been implemented during the recovery.
  
  
• Reputation Monitoring: Following a crisis, OCBC must monitor public sentiment and media coverage. This can be done through traditional media monitoring and social media listening tools. The bank should actively manage its online presence, responding promptly to misinformation or negative commentary.
  
  
• Highlighting Crisis Lessons: Demonstrating that lessons have been learned is crucial for long-term brand recovery. OCBC should consider publishing a post-crisis report that details the lessons learned, outlines any changes to crisis management processes, and describes ongoing efforts to strengthen the bank's resilience. This demonstrates to stakeholders that the crisis presented an opportunity for growth and improvement.

Post-crisis recovery and management are vital phases in ensuring that OCBC Bank not only recovers from a crisis but also emerges stronger and more resilient.

By focusing on a smooth transition to recovery, providing psychological support to stakeholders, and carefully managing its reputation, OCBC can restore trust and credibility.

These efforts will help to ensure that the bank is better prepared for future challenges, positioning itself as a leader in crisis management and business continuity.

As OCBC Bank moves forward, the lessons learned from each crisis will contribute to its ongoing improvement, fostering resilience in its people, systems, and processes.