Overview

Crises—whether natural disasters, cyberattacks, economic shocks, or leadership transitions—can destabilize cooperatives without warning. Unlike traditional corporations, cooperatives have an added responsibility to protect not just assets, but member trust and democratic processes. A proactive, customized crisis preparedness framework is essential to safeguard the cooperative’s mission, assets, and community impact.

This best practice will guide you through creating your cooperative’s own crisis preparedness plan using the Cooperative Crisis Plan Template provided.

Core Tactics:

• Form a Crisis Management Team (CMT).
  Designate a standing team made up of staff, board members, and key advisors responsible for crisis planning, communication, and rapid response.
• Create Your Cooperative Crisis Plan.
  Build a customized plan using the Cooperative Crisis Plan Template provided. Your plan should include:
  • Crisis Management Team (CMT) structure
  • Defined crisis types and response playbooks
  • Member and stakeholder communication templates
  • Business continuity backups
  • Decision-making hierarchies
• Run Annual Scenario Simulations.
  Practice crisis simulations at least once per year. Suggested scenarios include:
  • Cyberattack or data breach
  • Natural disaster disrupting operations
  • Sudden leadership resignation or governance conflict
  • Financial emergency
• Simulations strengthen response speed, communication effectiveness, and governance resilience.
• Prioritize Transparent and Member-Centric Communication.
  In a crisis, cooperatives must communicate:
  • Early (within hours of incident confirmation)
  • Frequently (regular updates)
  • Honestly (no minimizing risk)
  • Member-first (center communications on protections and impacts)
• Review and Improve the Plan Annually.
  After every simulation or real-world incident, debrief with the CMT:
  • What worked?
  • Where were the gaps?
  • How can the response be stronger next time?
• Update the crisis plan accordingly.
• Maintain Redundancy for Critical Functions.
  Ensure critical operations have backups, including:
  • IT systems
  • Financial platforms
  • Communication channels

Cooperative Crisis Plan Template

Cooperative Name: ____________________
Date Created: ____________________
Last Updated: ____________________

1. Crisis Management Team (CMT)
   

   Role	Name	Contact Info	Backup Contact
   CMT Leader
   Board Representative
   Staff Lead
   Communications Lead
   Legal Advisor
   IT/Data Security Lead

2. Identified Potential Crisis Types
   

   Crisis Type	Primary Risks	Primary Response Contact
   Natural Disaster (e.g., flood, earthquake)	Property damage, service interruption
   Cyberattack/Data Breach	Data loss, member trust erosion
   Financial Crisis	Insolvency risk, loss of services
   Governance Crisis (e.g., board dispute, leadership scandal)	Loss of member confidence, operational instability
   Reputational Crisis	Public relations fallout, loss of trust

3. Immediate Response Protocols
   General Crisis Activation:
   • Notify CMT within: ______ minutes
   • Initial member communication within: ______ hours
   • Executive/Board Emergency Meeting within: ______ hours
   • External stakeholder update within: ______ hours
     Specific Response Actions Example:
     

     Step	Action	Responsible Party	Timeframe
     1	Contain breach (disconnect systems)	IT Lead	Immediate
     2	Inform Board and Executive Team	CMT Leader	Within 1 hour
     3	Notify affected members	Communications Lead	Within 24 hours
     4	Engage forensic experts	IT Lead	Within 24 hours
     5	Report to regulators if required	Legal Advisor	As mandated

4. Member and Stakeholder Communication Templates
   Initial Member Notification Template:
   Subject: Important Update from [Cooperative Name]
   Dear [Member Name],
   We want to inform you about [nature of incident]. While we are actively working to [resolution steps], we want to assure you that [specific protections/next steps].
   We will continue to keep you updated. Thank you for your trust and partnership.
   [Contact Info]
   In cooperation,
   [Cooperative Name]
5. Business Continuity Plan Summary
   

   Critical Function	Backup/Alternative	Lead Contact	Notes
   Member Communications	Secondary email provider
   Financial Transactions	Backup banking system
   Data Storage	Cloud backups
   Physical Operations	Alternate facility (if needed)

6. Annual Review Log
   

   Review Date	Changes Made	Updated By

   Download Cooperative Crisis Plan Template (Google Sheet)

By proactively building your own crisis plan, your cooperative can act quickly, protect your members, safeguard operations, and emerge from crises with stronger trust and resilience.

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