Private Investment Firm — Crisis Management, Policymaking Analysis, and Risk Assessment
State of Play
A private investment firm became exposed to public scrutiny when a portfolio company in the communications sector it owned became involved in a politically charged business negotiation. Because several elected officials started to criticize the portfolio company and its owners, the firm needed expert guidance on responding to political attacks in the short term. Yet, they also wanted long-term plans to mitigate future political disputes for its portfolio companies, prepare for such disputes when they occur, and better position themselves for proactive or defensive advocacy when needed.
action
Media/Stakeholder Monitoring & Analysis – To ensure that the firm’s executives were aware of any political stakeholder mentions of its portfolio company in real-time, Narrative developed a daily monitoring system. This consisted of daily press reports that provided every mainstream and social media mentions and official statements on the firm’s portfolio company in the context of the controversy. These reports also monitored the rhetoric of politicians who consistently made statements against the firm and/or its portfolio company. It also included analyses of each news clip and meaningful stakeholder quotes — translating how this rhetoric could affect the firm’s reputation and the likelihood of more scrutiny.
Additionally, one of the firm’s energy sector investments came into the public eye after government agency hearings were scheduled to determine whether a large project the company wanted to construct across multiple states should be approved. To help the firm better understand the scrutiny that the portfolio company was experiencing on a local level — and the risk of that scrutiny shifting over to the firm itself — Narrative created press reports for the hearings that provided an analysis of local political and activist actions and their effects on the public image of the project.
Policymaking Analysis – Environmental-Social-Governance (ESG) investing – a set of principles used to screen investments on corporate policies that encourage companies to act responsibly in specific areas – has been under immense scrutiny from state and federal policymakers. As a firm that engaged in several investments related to reducing greenhouse gas emissions, the investment firm wanted a better understanding of the status of anti-ESG legislation and regulations nationwide. Narrative developed a weekly ESG report, compiling a complete summary and timeline of legislation in states where the firm had particularly vulnerable investments. The report also included a weekly roundup of news and views on ESG from both the state and national levels.
Risk Assessments – As this private investment firm determined the viability of existing investments and looked for new ones, they wanted to be sure they understood the political risks of investing in particular businesses and industries. To better predict these future political risks, Narrative conducted a comprehensive review of the firm’s portfolio companies to identify investments in sectors or business models that could be weaponized by political leaders or influencers on both sides of the political spectrum. Narrative also developed multi-case research analyses for new investments the firm was considering by examining similar firms that came under political attack or received reputational damage due to investments in similar companies or industries.
impact
Instead of being blindsided by public uproar over specific investments, the firm now has the information and confidence to proactively prepare itself for political attacks and media inquiries from all directions. Through daily media monitoring, policymaking analyses, and expert council, Narrative ensured that the firm’s leadership and external affairs teams had the information and perspective they needed to appropriately respond to a high-stakes crisis in a political arena for which they were unfamiliar — eventually leading to the resolution of the business negotiation.
Narrative’s further risk assessments of investments continue to provide the firm with a valuable outlook on the political and media landscape, helping to predict public reactions to investments based on controversies that have arisen in the past for certain companies in specific industries. This has allowed the firm to determine better the strength of its current investments and the merit of future ones.
