Survey: 81% of Philadelphia Companies are "Crisis-Prone" 80% admit feeling "skeptical" or "worried" about ability to respond effectively to large-scale crises Philadelphia, PA - September 24, 2003 - A survey released today reveals that 81 percent of CEOs and top executives in the Philadelphia area consider their companies to be "crisis-prone," with 88 percent or respondents admitting their companies are "not ready" to respond to a negative crisis event. The survey, conducted by Braithwaite Communications, a leading crisis and PR firm, polled 150 senior executives using an anonymous online survey questionnaire. Although the findings indicate a high awareness of the likelihood of a negative incident and the need for effective planning, it showed a lack of sufficient preparation. According to the survey, 82 percent of respondents feel that a crisis is either "likely" or "very likely" to occur within the next five years. A vast majority (90 percent) believe that crisis preparation and planning is either "critical" or "important" to achieving strategic and financial business goals. Yet, 74 percent admit they have not made a dedicated effort to evaluate their company's vulnerabilities. In fact, 80 percent report feeling "skeptical" or "worried" about their company's ability to react and respond effectively to a large-scale crisis. "Like it or not, crises have become a permanent fixture in today's media driven corporate landscape," said Hugh Braithwaite, President and CEO, Braithwaite Communications. "Today's companies have to plan for the improbable and the unthinkable - but this survey clearly shows that some of the region's most successful companies aren't even planning for the predictable." According to the survey, the barriers to effective crisis preparation are largely internal, with 58 percent of respondents citing "lack of crisis specific expertise" and "lack of time" as their greatest obstacles. In response to the survey, Braithwaite Communications announced the launch of a streamlined crisis planning program called CPR (Crisis Planning and Response™). The 30-day intensive planning program leads participating companies through a four-step scenario plan. It includes: a customized crisis audit; threat analysis; message and material development; response testing and simulations. Research shows companies prepared for crises statistically perform better financially, stay in business longer and boast a stronger reputation than companies not prepared for crises. A study conducted at Oxford University assessed the financial impact of various crises (occurring 1980-1995) on 15 leading corporations. It found that stock prices of companies that managed their crises well rose seven percent on average in the following year. By contrast, the stock price of companies with less effective crisis management dropped 15 percent. Additional Survey Findings 80% of companies report being "skeptical" or "worried" about their ability to react and respond effectively to a large-scale crisis As many as 70% of those same companies do not have an updated Crisis plan. About Braithwaite Communications Braithwaite Communications is a Philadelphia-based independent public relations firm specializing in strategic marketing, public affairs and crisis management. Founded in 1996, the firm provides leadership and counseling to select regional and national corporations in the technology, e-commerce, financial service, consumer, business services and healthcare industries. For more information please visit www.braithwaitepr.com.