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SECOND WAVE RESPONSE PLANNING

LOOKING FURTHER AHEAD

IMMEDIATE STEPS

Identify operational vulnerabilities and assess where to shore-up versus where energy and resource may be better directed

Identify and collate key documents where relevant rights and obligations sit (e.g. supply contracts and insurance policies)

Plan internal and external communications

Reflect upon lessons learned to dateIntroduce / update a second wave response plan

Last updated 1 July 2020

Immediate steps

All companies should take stock of lessons learned to date and plan ahead for any potential second wave of Covid-19 cases.

Looking further ahead

Much has been made of the possibility of a further spike of 19 cases, with the potential for further lockdown restrictions being imposed. Although it is difficult predict the form such restrictions may take a second time around, with reports of restrictions being re-imposed in some areas of the world, companies should take the opportunity now to reflect on their response to the initial outbreak and take active steps to ensure measures are in place should a second wave materialise.

As many businesses have seen already, the speed and quality of delivery of any crisis response correlates directly to the thought and time invested in planning and preparing for events. Companies that are prepared and can respond confidently are able to:

Safeguard business operations and the wellbeing of staff and customers

Maintain financial resilience and retain investor confidence

Minimise damage to reputation and legal liabilities

Avoid the need for stakeholder intervention

Retain or enhance goodwill and strengthen and appropriately showcase brand and values

Minimize effects of negative media coverage

Accordingly, boards should be actively encouraging management to undertake this exercise now and ensure they remain informed throughout.

Response plan

Companies should revisit their response procedures to the initial outbreak and consider any lessons learned. In particular, did the company have a written response plan in place to deal with the issues Covid-19 has given rise to? Was it fit for purpose and where could it be improved or adapted should a second wave, and re-instatement of restrictions, bring about further disruption?

Broadly, any plan should contemplate two essential elements:

Operational: i.e. what do we do? when is it done? who does it?Communications: i.e. what do we say? who says it? how and where do we say it?

1.2.

Operational issues: what do we do and when?

The operational issues that should be covered in the response plan will vary from company to company and much of this will be informed by how they have been impacted to date by Covid-19. Companies will need to give careful thought to the nature of their operations and how they may be affected by any second wave.

For example, with health and safety of staff and customers a primary concern for nearly all businesses, early and thorough assessments of whether premises can remain open (now and/or in the event of further restrictions) are likely to be a key priority. Businesses may also need to identify swiftly which of their activities can continue remotely and ensure the IT infrastructure necessary to support that remains fit for purpose and that virtual networks remain adequately secured.

Likewise, close oversight of supply chain vulnerabilities and management of key contracts (including insurance policies), will enable companies to anticipate and respond promptly to potential operational exposures and mitigate potential litigation risks. If they haven’t already ,businesses should take the opportunity now to identify and collate relevant documents in which their legal rights and obligations sit – where later required, technological solutions can help to triage this data and allow the business to focus on the key areas of key contracts and determine the extent of such rights and obligations.

Ongoing liquidity management and oversight of the company’s financial position will inevitably also be critical in ensuring it is able to remain resilient and weather the impact of any second wave. No doubt this is already happening in most companies but it is worth reflecting on whether  internal and external reporting remains fit for purpose and that consideration is given to realistic lead times for securing and arranging any necessary re-financing or additional liquidity lines.

Operational issues: response team

Any response plan should outline the team who will be responsible for handling any second wave consequences and implementing the plan.

Key decision-makers with appropriate authority will need to be identified and thought should be given as to whether and how to involve representatives from different parts of the business that may be affected, as well as any relevant organisational heads (e.g. HR, IT, Legal etc.) and any external parties it may be appropriate to engage (e.g. PR or law firms and other third party consultants). It is important the team is not so big as to become unwieldy or inhibit effective decision-making and consideration should be given as to how best to address this.

Board members (if not otherwise included) should ensure reporting lines are in place to enable ongoing visibility and oversight of the response team’s strategy and progress.

Communications strategy

Many companies will have dedicated significant resource already to addressing the communications aspect of their Covid-19 response. Constant monitoring of communications strategy will be required to ensure that it continues to be appropriate in the dynamic environment and in keeping with prevailing sentiment. It will need to ensure that accurate updates are provided to key stakeholders to limit rumours, misinformation and speculation. Credibility will be key and ensuring the right messages are delivered at the right time by the right people may be crucial in riding out any second wave.

Companies will need to work closely with their Communications team and PR advisors to determine or adapt internal and external messaging - some of which work can be done now (for example, preparing or updating pre-approved holding statements). There should be a clear view as to the severity of any second wave impact on the company. This may change over time, but be aware for example of immediately labelling the advent of a second wave as a “crisis” given the serious connotations this term carries - some companies may find a different characterisation more appropriate.

Key stakeholders (including the company’s board, for example) should be identified and controlled lines of communication with those stakeholders established. In particular, it will be critical to ensure the PR strategy is appropriately aligned with any regulatory or contractual reporting obligations – getting this wrong can expose the company to litigation risk as well as long term damage in terms of market confidence.

Looking furtherahead

Immediate Steps

Reflect upon lessons learned to dateIntroduce / update a second wave response plan

Identify operational vulnerabilities and assess where to shore-up versus where energy and resource may be better directed

Identify and collate key documents where relevant rights and obligations sit (e.g. supply contracts and insurance policies)

Plan internal and external communications

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The contents of this publication, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.