Public companies increasingly find themselves under scrutiny from many directions—from government agencies like the U.S. Securities and Exchange Commission and Department of Justice and state attorneys general; from shareholders challenging corporate policies, executive compensation, or perks; from current and former employees; and from investors, analysts, and the press. In this environment, virtually every public company will become a target of such scrutiny, but many are unprepared to deal with such scrutiny when it arises.??

In an article originally published in the Journal of Securities Law, Regulation and Compliance, WilmerHale Partners William McLucas and Laura Wertheimer set forth a flexible framework that can be used by a company's board and senior management team when confronted by this increasingly familiar situation, discuss the importance of reviewing existing compliance and risk management functions and controls as part of this framework, and argue that an effective response almost always leaves the company better positioned than it was at the start.????

Read the full text of the article: Responding to a corporate crisis — A framework for dealing with bad news.