Yes, I do risk assessments as part of what I do for a living.
Are you familiar with a risk matrix?
Phil was better off not responding at all to these rumors than to tweet that they have an event next week.
There are just several mistakes here.
- Not addressing the issues head on to stem the bleeding
- To push off the timeline for addressing the issues
- To not give a specific date for addressing the issues
That's not how you respond to a SEV1. You have lifelong Xbox fans who are selling their consoles, who are essentially your brand ambassadors and I'm not talking about online influencers. I'm talking about people who tell their grandmas what to get their grandkids for their birthdays and for christmas. You're impacting what people are told at retail... "Don't buy an Xbox, they could pull the rug out from you any day now."
Reputational damage is so dangerous because you can't understand the cost, it can be exponential.
Imagine the risk of not updating a contract in time and service is discontinued. Let's say it's for internet access. You have to send everyone home, but maybe you have disaster recovery plans in place to allow for remote work, you largely know what you've lost, the time to send people home during the workday, that some people won't have good quality internet at home, that additional remote work will slow down projects, and you probably know how long it will take to get internet restored to an office.
Nobody knows the extent of the damage this week will cause Microsoft... nobody...