Crisis is easy, so why do CEOs fail?

We all know how a media crisis often turn out. Why then, when there's a crisis of some sort, CEOs don't handle them effectively? Modern crisis managers offer similar guidance and strategy. Yet companies and institutions repeatedly make mistakes, and CEOs scar their reputations, often through stupidity or ego. It's hard to imagine that individuals and institutions of caliber will not prepare for a crisis, but many do not. Others who do have plans don't follow them in times of panic.

Reputation is capital value

Corporate reputation is substantial, according to a recent study. At the end of the day you can put a number on the reputation of an organization. Echo Research and Reputation Dividend explained that a corporate reputation is worth, on average, 26 percent of the market cap of a company. That means your reputation stands for substantial corporate value and like all other elements that determinate the value of a company (like clients and human capital) should be handled accordingly.