Smoldering crises continue to be the dominant challenge for organizations, according to the 2024 ICM Annual Crisis Report. This year, these slow-burning issues accounted for a striking 75% of all crisis stories tracked—a trend that has held steady for years, with the exception of the COVID period (2020-2023). Of the 16 crisis categories monitored, smoldering crises include class actions, discrimination, executive dismissals, labor disputes, mismanagement, sexual harassment, whistleblowing, and white-collar crime. A clear pattern emerges: many of these crises are rooted in what can be described as “employees behaving badly.”
The latest ICM report highlights several high-profile examples, such as the ongoing Johnson & Johnson talcum powder litigation, more than 88,000 workplace discrimination allegations, inappropriate executive conduct, and frequent turnover in the C-suite. These are not sudden shocks; they are issues that develop over time and are often predictable and preventable with the right organizational focus.
The lesson for leaders is clear: investing in robust risk management and crisis planning is essential. The cost of prevention and preparedness is minimal compared to the financial and reputational damage a single crisis can inflict. Proactive measures today can help organizations avoid tomorrow’s headlines and protect their most valuable assets.
