Tuesday, September 19th, 2017

Crisis Management

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Obviously, a business hopes not to have a crisis situation that may cause significant business disruption and / or stimulates extensive media coverage. Public scrutiny as a result of this kind of media coverage often affects the normal operations of the company and can have a negative financial, political, legal and governmental impact.

Some generic information on crisis management.

  • Be prepared in advance. Prepare contingency (crisis management team and members can be formed).
  • Immediately and clearly announced internally, the only person to speak about the crisis the outside world by the crisis team members.
  • Move quickly (first hours after the crisis first breaks are extremely important, because the media often build upon the information in the first hours).
  • Use crisis management consultants (advice by objectivity of PR consultants is important, use a corporate image expertise of specialists).
  • Get accurate and correct information (remember that trying to manipulate information will seriously backfire if it is discovered, also internally!).
  • When deciding upon actions, consider not only the short-term losses, and focus also on the long-term effects.

Executives at all levels of the organization should be trained and engaged in crisis management.

The most effective crisis management occurs when potential crises are detected and dealt with quickly- before they can impact the organization’s business. In those instances, they never come to the attention of the organization’s key stakeholders or the general public via the news media.

Creating a business continuity plan

In instances where a crisis exists, or it is inevitable that a crisis will impact the organization’s key stakeholders, a business continuity plan is helpful to minimize the damage. Developing such a plan may seem like a daunting task, but in actuality it is a common sense document. It involves identifying those functions and processes that are critical to the business, and designing operational and communications contingency plans to deal with the potential failure of one or more of them and how key stakeholders will react when they find out.

Companies with business continuity plans are in a better position to minimize the damage. Another benefit executives may find as they go through the process of developing the plan is the heightened awareness of possible crisis situations that could disrupt the business and affect its operating expenses, profits and overall growth.

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One Response to “Crisis Management”
  1. Terpsypobre says:

    I grew up in a very open-minded family. My father died when I was very little, so my mother was really, really incredibly busy trying to provide for us.

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