Insight
Strengthening Public Entity Crisis Readiness Before the Next Event
By Scott McNea, Alliant Public Entity
Public entities are operating in a more volatile risk environment than ever before. Natural disasters, cyber incidents, infrastructure failures and targeted violence events are increasing in frequency and complexity. At the same time, the speed at which information spreads has fundamentally changed how crises unfold.
Ransomware attacks alone highlight the urgency. More than 200 incidents targeting government organizations were recorded globally in the first half of 2025, reflecting a sharp increase in activity across the public sector.1 At least 117 U.S. government entities reported ransomware incidents in 2024, underscoring the persistent nature of these threats.2
In this environment, crisis readiness is not defined by whether a plan exists. It is defined by how effectively that plan can be executed under pressure. This article outlines the most common readiness gaps and practical steps public entities can take to improve response outcomes.
3 Gaps That Undermine Public Entity Crisis Readiness
Many public entities have invested time and resources into emergency response planning. However, breakdowns often occur in execution. The following gaps are the most common:
Plans are often documented but not exercised. Without regular scenario-based discussions or drills, teams are forced to make decisions in real time without prior coordination.
Monthly tabletop exercises that simulate different crisis scenarios can help teams understand roles, decision points and communication expectations before an event occurs.
Crisis plans frequently assign responsibilities to individuals rather than positions. Over time, staffing changes create confusion around who is responsible for key actions such as activating the plan, notifying stakeholders or communicating with the public.
Assigning responsibilities by role ensures continuity and clarity, even as personnel change.
Crisis response requires coordination between leadership, IT, communications, operations and external partners. When these groups operate in silos, response efforts become fragmented.
Alignment must be established in advance, including clear communication protocols, escalation paths and decision-making authority.
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Why Crisis Communications Require a New Approach
The pace of information sharing has accelerated significantly. Social media often surfaces incidents before official channels respond, creating immediate public visibility and pressure.
This shift increases the importance of timely, accurate communication. Nearly all ransomware incidents in the public sector now result in operational disruption, with 98% leading to data encryption and system impact.3
Public entities must be prepared to communicate early, even when all details are not confirmed. Effective communication should clearly outline:
- What is known
- What actions are being taken
- When additional updates will be provided
Delays in communication increase the risk of misinformation and erode public trust.
Technology Investment Must Be Matched with Execution
Public entities continue to invest in emergency notification systems, GIS mapping tools and AI-enabled platforms to improve real-time decision-making.
However, technology alone does not ensure readiness. The financial impact of inadequate preparation continues to rise. The average cost to recover from a ransomware attack in state and local government reached $2.83 million in 2024.3
To be effective, technology must be:
- Integrated into response plans
- Tested regularly
- Supported by trained personnel
Systems that are not actively used and validated will not perform as expected during a crisis.
Balancing Holistic Planning with Specific Risk Exposure
Crisis events rarely occur in isolation. A single incident can trigger multiple operational challenges. For example:
- An earthquake may lead to fire, gas leaks and water system disruption.
- A wildfire may impact evacuation routes, utilities and public services.
- A cyber incident may disrupt operations while creating legal and reputational risk.
Public entities should develop a holistic response framework that defines leadership structure and communication protocols while also addressing risks specific to their geographic location and operations.
A Practical Framework for Improving Crisis Preparedness
Public entities can strengthen crisis readiness by implementing a consistent, repeatable process:
- Conduct monthly scenario-based discussions across departments.
- Assign responsibilities by role, not individual.
- Establish clear communication protocols for internal and external audiences.
- Test emergency notification and response systems regularly.
- Update crisis plans at least annually or when operational changes occur.
- Incorporate lessons learned from past incidents and near misses.
A simple but effective benchmark is whether the organization could respond to a major disruption tomorrow without hesitation or confusion.
Crisis readiness is an ongoing discipline that requires coordination, planning and continuous improvement. Organizations that invest in readiness reduce operational disruption, protect public trust and improve recovery outcomes.
Alliant Public Entity partners with public organizations to assess risk exposure, strengthen crisis response frameworks and align insurance strategies with operational realities. With extensive experience across municipalities, utilities, transit systems and public agencies, Alliant provides tailored risk management solutions designed to support resilience before, during and after a crisis.
Preparation is not about eliminating risk. It is about reducing impact and improving response when it matters most. Connect with an Alliant Public Entity specialist to evaluate current readiness strategies and identify opportunities for improvement.
Sources
[1] Comparitech. “Government Ransomware Attacks: H1 2025 Statistics.” Comparitech, 2025.
[2] Emsisoft. “The State of Ransomware in the U.S.: Report and Statistics 2024.” Emsisoft, 2024.
[3] Sophos. “The State of Ransomware in State and Local Government 2024.” Sophos, 2024.
This document is provided for general informational purposes only and does not constitute legal, tax, accounting, insurance, brokerage, risk management, or other professional advice. You should consult your own legal counsel or other qualified professional advisors regarding your specific circumstances, and receipt of this document does not create any client, advisory, fiduciary, brokerage, or other professional relationship with Alliant Insurance Services, Inc. This document is provided “as is” without warranty of any kind, and Alliant Insurance Services, Inc. disclaims any liability for any loss or damage arising out of or relating to reliance on this document.
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