Crisis Management Strategy in Handling Financial Sector Scandals in the Digital Transformation Era

Wenjing Wang,Arthur S Guarino

doi:10.32861/ijefr.73.115.131

Abstract

This paper provides empirical evidence of how scandals could affect financial institutions in terms of market stock price, yearly returns, and the length of time it took to regain the public’s trust and ultimately recover in the long run. Moreover, we carefully examine the importance of dealing with crisis management in the digital transformation era’s financial service sector. We specialize in crisis management, which aims to mitigate the destruction of companies’ public crises in existence. Finally, based upon investigating scandals in public and private financial sectors in the United States, we list 21 strategic crisis management plans at the end of the paper to handle financial services sector scandals in the digital transformation era.

Highlights

The exponential growth of local population and consequent tourist visitors (Bailey and Buckley, 2005) over the last two decades on the Galápagos Islands has caused several impacts
One of the most significant ones is the dramatic increase on water demand, especially on the island of Santa Cruz, which holds 60% of the total population of the archipelago (INEC, 2010)
Even though the municipal water supply system came into operation in the 1980's with the objective of providing of proper water supply, it has failed to optimally serve local population in terms on quantity and quality

Summary

Introduction

The exponential growth of local population and consequent tourist visitors (Bailey and Buckley, 2005) over the last two decades on the Galápagos Islands has caused several impacts. One of the most significant ones is the dramatic increase on water demand, especially on the island of Santa Cruz, which holds 60% of the total population of the archipelago (INEC, 2010). The municipal water supply system has not been able to cope with current expansion rates in Santa Cruz island. The main issues with this water supply system is that it is unreliable and intermittent. The supplied water is not apt for human consumption due to high chloride levels (Banerjee et al, 2010) from brackish water sources and high levels of feacal coliforms (Boland and Whittington, 1998), due to the proximity of septic tanks to water sources. Due to the intermittency of the service, local population has resourced to different types of storages in form of elevated tanks and/or cisterns

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