Crisis Simulation Exercises

Why Simulate Crises?

Crisis plans that haven't been tested probably won't work. Processes that seem logical on paper reveal gaps when executed under pressure. Team members who understand their theoretical roles struggle when facing realistic scenarios. Simulation exercises bridge this gap between planning and capability.

For listed companies, the stakes are high enough to justify investment in realistic testing. Share prices, regulatory relationships, and institutional confidence all depend on effective crisis response. Discovering your plan doesn't work during an actual crisis is extremely costly.

This guide covers how to design, run, and learn from crisis simulation exercises.

Types of Crisis Simulations

Simulations range from simple discussion exercises to immersive multi-day events. The right format depends on your objectives, resources, and current capability level.

Start with simpler formats if you're new to crisis exercises. Build complexity as your team develops confidence and capability. Running an overly ambitious simulation before teams are ready can be counterproductive.

Designing Effective Scenarios

Good scenarios are realistic, relevant, and challenging without being impossible. They should test your actual vulnerabilities rather than generic crisis types that don't reflect your risk profile.

Scenario design principles:

1. Base scenarios on your identified risk areas
2. Include realistic ambiguity and incomplete information
3. Build in decision points that test your protocols
4. Add time pressure that reflects real crisis dynamics
5. Include stakeholder dimensions relevant to listed companies
6. Create injects that evolve the situation realistically

For listed companies, scenarios should include regulatory dimensions. How does the issue affect disclosure obligations? What's the market impact? When does the board need involvement? These elements distinguish exercises relevant to public companies from generic crisis training.

Sample Scenario Elements

Effective scenarios typically include several phases with escalating complexity.

Phase 1: Initial Alert (30 minutes)

• Issue first surfaces through monitoring or internal report
• Initial information is limited and somewhat ambiguous
• Teams assess situation and activate response protocols
• First decision point: declare crisis or continue monitoring?

Phase 2: Escalation (60-90 minutes)

• Additional information emerges, some conflicting
• Media enquiries begin, social media activity increases
• Stakeholder pressure builds, including investor enquiries
• Decision points: holding statement? Market announcement? Media briefing?

Phase 3: Peak Crisis (60-90 minutes)

• Full media attention on the issue
• Multiple stakeholder groups requiring communication
• Unexpected developments test adaptability
• Leadership visibility decisions become critical

Phase 4: Stabilisation (30-60 minutes)

• Immediate crisis begins to subside
• Focus shifts to recovery communications
• Planning for ongoing stakeholder management
• Initial lessons learned discussion

Facilitation Best Practice

Good facilitation makes the difference between a valuable learning experience and a frustrating waste of time. Consider using external facilitators for important exercises, particularly if internal options lack crisis experience.

1. Brief participants on objectives and ground rules beforehand
2. Maintain realistic pace without allowing exercise to stall
3. Inject new information at appropriate intervals
4. Observe decision-making process, not just decisions
5. Take notes on process gaps and training needs
6. Stay in facilitator role rather than becoming participant

Evaluation and Learning

The real value of simulations comes from post-exercise analysis. Schedule dedicated debrief time immediately following the exercise while experiences are fresh.

• Process adherence: Did teams follow established protocols?
• Decision quality: Were decisions appropriate for the information available?
• Communication effectiveness: Were stakeholder messages clear and consistent?
• Timing: Did response occur within acceptable timeframes?
• Coordination: Did different teams work together effectively?
• Leadership: Did appropriate people take appropriate roles?

Document findings formally. Create action items with owners and deadlines. Update crisis plans based on lessons learned.

Frequency and Scheduling

Minimum recommendation: comprehensive tabletop exercise annually, covering your highest-probability crisis scenarios. More frequent exercises for organisations with higher risk profiles or less mature crisis capabilities.

• Following significant organisational changes
• After plan updates or new protocol implementation
• When new executives join who would have crisis roles
• Following actual incidents to test improvements
• Before high-risk periods such as major announcements

Involving External Partners

Consider involving external advisors in simulation exercises. PR agencies, legal advisors, or crisis consultants can provide realistic role-play as media, regulators, or other stakeholders. Their external perspective often surfaces blind spots that internal facilitators miss.

At Corpcast, we participate in crisis simulations for clients, particularly testing communications capability including rapid video content production. Contact our team at hello@corpcast.co.uk to discuss how we can support your crisis preparedness.