IB Business Management 5.7 Crisis Management Quiz

What is the main difference between crisis management and contingency planning?

• Crisis management is reactive, while contingency planning is proactive

• Crisis management prevents crises, while contingency planning does not

• Contingency planning deals with customer complaints, while crisis management does not

• Crisis management is unnecessary if a business has a contingency plan

Which of the following best describes contingency planning?

• Ignoring potential risks to save time and money

• Planning for unexpected events before they happen

• Managing a crisis as it unfolds

• Terminating employees during a financial crisis

An example of crisis management would be:

• Preparing an emergency evacuation plan in case of fire

• Implementing safety measures before an earthquake occurs

• Responding to a product recall due to safety issues

• Training employees on potential risks before they occur

Which of the following is a key objective of contingency planning?

• To reduce decision-making speed in a crisis

• To improve the company’s crisis response and minimize damage

• To ensure crises never happen

• To avoid spending money on safety measures

A business continuity plan is an example of:

• Crisis management

• Contingency planning

• Risky decision-making

• Unnecessary business expenses

Why is transparency important in crisis management?

• It prevents customers from learning about the crisis

• It builds trust and reduces reputational damage

• It allows businesses to hide key information

Which of the following best describes effective crisis communication?

• Avoiding customer complaints and negative media coverage

• Clearly and quickly informing stakeholders about the situation

• Delaying responses to give managers time to think

• Only communicating with top executives

In crisis management, speed is important because: a) It allows businesses to act before the crisis worsens b) It ensures a slow and careful decision-making process c) It prevents managers from making mistakes d) It guarantees that the crisis will never happen again

• It allows businesses to act before the crisis worsens

• It ensures a slow and careful decision-making process

• It prevents managers from making mistakes

• It guarantees that the crisis will never happen again

A lack of control during a crisis can lead to:

• Improved efficiency in problem-solving

• Increased confusion and reputational damage

• Reduced risk and faster decision-making

• Better financial performance

What is one way a company can maintain control during a crisis?

• Ignoring external media reports

• Having a clear crisis response plan in place

• Blaming employees for mistakes

• Avoiding communication with stakeholders