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Crisis Trends: the ICM Annual Crisis Report Analysed
In this edition I am looking at the Institute for Crisis Management's (ICM) 2023 Annual Crisis Report.
Philippe Borremans
August 01, 2024 • Estimated Reading Time: 10 minutes
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Dear reader,
Sorry… this edition of the Wag The Dog Newsletter is a day late! 😅
In this edition I am looking at the Institute for Crisis Management's (ICM) 2023 Annual Crisis Report.
Deborah Hilleman, the CEO of the ICM, does a fantastic job every year of analysing the general trends in crisis communication.
The report provides an in-depth look at the evolving crisis landscape, highlighting the key trends and changes that have characterised the past year.
From the increasing impact of natural disasters to the rise of cyber threats and legal action, these insights are vital for organisations looking to stay ahead.
Let’s check out the findings. Enjoy!
Table of Contents
Key findings from the ICM Annual Crisis Report 2023
The Institute for Crisis Management (ICM) has published its Annual Crisis Report for 2023, and provides a comprehensive analysis of the global crisis landscape.
This year’s report1 highlights significant changes in various crisis categories, reflecting broader societal and environmental changes. Here is an overview of the key findings:
Overall decline in crisis news:
The total number of crisis news stories decreased by 9% in 2022 and totalled 1,977,722 stories in 2023.
Balanced crisis types:
The ratio between sudden and smouldering crises is almost 50:50 again and corresponds to the 2020 level.
Declining categories:
Five categories saw a decline: accidents, consumer activism, executive dismissals, sexual harassment and whistleblowers.
Increase in disasters:
Disasters accounted for 26.10% of crisis reports, up from 20.81% in 2022, primarily due to natural disasters.
Impact of natural disasters:
In 2023, 399 natural disasters caused 86,473 deaths and affected over 93 million people worldwide.
Economic losses from these events totalled more than USD 250 billion, exceeding the 20-year average.
Record weather events in the USA:
The U.S. experienced 28 separate weather and climate disasters with billions in losses, more than ever before.
Legal and cyber trends:
Class action lawsuit reporting increased from 7.70% in 2022 to 11.37.
Cybercrime reports more than doubled from 3.21% to 7.24%.
Reports of discrimination also doubled from 3.44% to 7.19%.
Environmental and corporate issues:
Reports of environmental damage increased from 0.07 in 2022 to 0.47%.
Hostile takeovers rose from 0.42% to 3.71%.
Reports of white-collar crime increased from 1.8% to 10.8
Reports of workplace violence rose to 9.39%.
Trends shaping the crisis landscape
The report highlights a dynamic and evolving crisis landscape for 2023. Here are some key trends:
Climate change and natural disasters:
The increase in disaster declarations and economic losses from natural disasters highlights the increasing impact of climate change3 . Organisations need to prioritise resilience and preparedness for extreme weather events.
Increase in litigation:
The significant rise in class action litigation demonstrates the increasing legal scrutiny and demand for corporate accountability. This trend reflects increasing public and legal activism against corporate misconduct.
Cybersecurity Concerns:
With reports of cybercrime more than doubling2 , digital security remains a critical area of concern. Companies need to invest in robust cyber defences and remain vigilant to new threats.
Workplace issues:
The rise in workplace violence and white-collar crime points to underlying societal and economic stressors. Organisations need to create a safe and ethical working environment.
Staying Prepared: Recommendations for businesses
The ICM report stresses the importance of being prepared for crises. Here are the key recommendations:
Involve senior management: Ensure that board members are actively involved in crisis management and decision-making processes.
Invest in planning and training: Regularly update crisis communication plans and conduct comprehensive training for employees at all levels.
Evaluate vulnerabilities: Conduct thorough risk assessments to identify and mitigate potential vulnerabilities.
Stay current: Keep contingency plans up to date with new threats and best practises.
Methodology
The Institute for Crisis Management (ICM) conducts an annual analysis of global economic crises, categorising 1,977,722 crisis news stories from 2023 into 16 categories such as natural disasters, cybercrime and workplace violence.
ICM uses quantitative and qualitative analyses and compares the current data with that of previous years to identify trends and shifts in the crisis landscape.
Supplementary data from sources such as the Centre for Research on the Epidemiology of Disasters (located in my home country of 🇧🇪) and the U.S. Securities and Exchange Commission are included for a comprehensive overview.
Recap
The ICM Annual Crisis Report for 2023 offers valuable insights into the changing crisis landscape. From natural disasters to cyber threats, organisations must remain vigilant and proactive in their crisis management efforts.
By understanding these trends and implementing robust preparedness strategies, organisations can manage the complexity of today’s crisis environment and protect their operations and reputation.
References and further reading.
1 Annual Crisis Report | Institute for Crisis Management. (2024, July 31). ICM Crisis Consultants. https://crisisconsultant.com/icm-annual-crisis-report/
2 Rising Cyber Threats Pose Serious Concerns for Financial Stability. (2024, April 9). IMF. https://www.imf.org/en/Blogs/Articles/2024/04/09/rising-cyber-threats-pose-serious-concerns-for-financial-stability
3 sigma 1/2024: Natural catastrophes in 2023. (2024, March 26). Https://Www.swissre.com/Institute/Research/Sigma-Research/Sigma-2024-01.Html; Swiss Re Institute. https://www.swissre.com/institute/research/sigma-research/sigma-2024-01.html
Did you check out my crisis and emergency communication resources yet? You can download templates, checklists, and practical guidance on this page. You will find tools such as a Crisis Communication Plan Template, the Audience Canvas for Emergency Communication, and much more.
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