Crisis Management and Contingency Planning

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What is a crisis in a business context?

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A crisis is any unpredicted event that has widespread negative consequences, causing major disruptions to the normal operations of an organization.

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What is crisis management?

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Crisis management is the response a business takes in the event of an actual crisis.

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What is contingency planning?

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Contingency planning involves devising and developing pre-arranged plans to deal with a crisis before it occurs.

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What are some examples of crises?

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Examples include financial crises, natural disasters, accidents, and outbreaks of infectious diseases.

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What are the four key factors affecting effective crisis management?

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1. Transparency 2. Communication 3. Speed 4. Control

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Why is transparency important during a crisis?

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Transparency involves being open and honest with stakeholders, which helps maintain trust and corporate image.

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What role does communication play in crisis management?

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Effective communication helps stakeholders understand the situation and the actions being taken, earning support and goodwill.

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How does speed impact crisis management?

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A speedy response is crucial to contain the situation and return to normal operations quickly.

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What is the significance of control in crisis management?

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Control involves managing the crisis effectively to prevent further damage and ensure clear leadership.

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What is an example of a real-world crisis?

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The global financial crisis of 2008.