Crisis Management

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Giving the right response in case of a significant business disruption. Explanation of Crisis Management.


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Obviously, any corporation hopes not to face "situations causing a significant business disruption which stimulates extensive media coverage" (crisis). The public scrutiny that is a result from this media coverage often affects the normal operations of the company and can have a (negative) financial, political, legal and governmental impact. Substantial value destruction is to be feared of, especially when the crisis is not handled well in the perception of the media / public opinion. Crisis management deals with giving the right crisis response (precautionary, structural and ad-hoc).

Some generic help and hints on crisis management

  1. Prepare contingency plans in advance (crisis management team and members can be formed at very short notice, rehearsing of crises of various kinds)

  2. Immediately and clearly announce internally that the only persons to speak about the crisis to the outside world are the crisis team members)

  3. Move quickly (the first hours after the crisis first breaks are extremely important, because the media often build upon the information in the first hours)

  4. Use crisis management consultants (advice by objectivity of PR consultants is important, use the corporate image expertise of specialists)

  5. Give accurate and correct information (remember that trying to manipulate information will seriously backfire if it is discovered, also internally!)

  6. When deciding upon actions, consider not only the short-term losses, but focus also on the long term effects.

Executives at all levels of the organization are employed to manage crises and often do so on a daily basis. Their skills are really tested when they have to manage significant crises that have the potential to disrupt the organization's value creation process, income sources, operating expenses, stock price, competitive position and ongoing business. Compare: Charismatic Leadership.
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 the crisis already has erupted, or it is inevitable the crisis will impact the organization's key stakeholders, a business continuity plan is helpful to minimize the disruption and damage. Developing such a plan can 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, then designing the 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. An important element that is sometimes overlooked is to test the Business Continuity Plan. Also companies should consider Business Interruption Insurance against the loss of income after events (disasters) that temporarily interrupt business operations.
Corporations with business continuity plans will be in a better position to minimize the business impact and financial damage. On top of that, executives may find that the process of developing these plans also has an indirect benefit. Their organizations are more sensitive to possible crisis situations that could disrupt the business and affect its operating expenses, profits and overall growth. As a result their managers respond more rapidly and effectively to head them off.

Book: Laurence Barton - Crisis in Organizations II -

Book: Steven Fink - Crisis Management: Planning for the Inevitable -

Crisis Management Forum
  Combine Contingency Planning with SWOT Analysis
There is a strong case for all companies / organizations to regularly do a serious SWOT analysis - all 4 boxes and combine that with Contingency Planning.
There is the possibility that a sudden Weakness, a sudden Threat, once it's identified, we...
  How Often Should Contingency Planning Be Performed? Frequency
Does keeping the duration of the validity of contingency planning short to say 2 to 4 weeks help in doing a better strategic planning job?
Improvisation from the feedback received from the first iteration before the second iteration is performed...
  Crisisology as a Discipline
I am seeking information regarding activity in the area of crisisology in Europe. Can someone bring me up-to-date as to what is being practiced and published there? There isn't much of anything going on in this area in the United States. I am the onl...
  Crisis Management Software
Hi members, I am looking for a crisis management software package with a mobile facility, should anyone have any experience in the same just please communicate it back. Regards....
  Online Crisis Management
Philip Young and I have been asked to write the third edition of of the best selling text book Online Public Relations (Kogan Page) in which we have a chapter on crisis management. We would welcome contributions and insights from both practitioners a...
  GIS Emergency Management
I am researching on how Graphical Information Systems (GIS) can influence emergency management for principal response agencies GDSs. Are there any case studies of same or a framework / model in this respect?...
  How to Deal with Crises Situations in an Organisation
What are the right steps to be taken in dealing with crises in an organisation in order to prevent it from escalating beyond control?...
  International Association of Emergency Managers
For those professionals engaged in crisis and emergency management I would recommend you look at
The International Association of Emergency Managers (IAEM) now has 7 global councils and over 5000 members. It has moved on considerably fr...
  Developing an Emergency Plan
To avoid loss of lives during an accident, it is good practice to exercise the emergency response plan. My question is how to develop an exercise plan? (brake down events list for the exercise)...
  Definition of Economic Crisis
What precisely is the definition of an Economic crisis?...
  Understanding Scenarios and Consequences
A failure in most planning is that it's analytical versus strategic in nature. In systems thinking, an important attribute is to understand consequences. Managing consequences is more than just mitigating risks -- which is analytical. Consequences ar...
  Strategy for Product Quality Crisis
What are the possible strategies one should take to overcome a crisis regarding the quality of your products (especially in the food sector)?...
  Paid Placement for Company Statements and Stories
Part of making sure the world hears your side of the story is placing it in the online news media. Newsforce Network places "storytelling media" in ad space across hundreds of premium newspaper and news sites online, so you can control the message an...
  Preparing Execution of Contingency Plan
Contingency Planning is very important. Before actually executing the contingency plan, certain critical actions have to be taken such as:
1. Quickly gather, analyze and interpret factual data and information that led to the crisis.
2. Iden...
  Why nobody prepared for the current crisis?
The article above explains that it's important to prepare contingency plans in advance, before an actual crisis occurs.
Isn't it remarkable that neither governments, nor financial regulators, nor financial instituations seem to have created any ...
  How to deal with the Media in a Crisis?
Sometimes, it's hard for the company to deal with the media. If the case is 100 % black propaganda (such as libels or slanders) from others, is not too hard to gather all the fact for the press. But, if the cause arose within our own company, it's re...
  Execution in Crisis Management
It is not only to forecast/ plan for the contigencies but also the execution in case of actual crisis. There have been several instances in my career of around 17 years now that this concept has been implemented....

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Crisis Management Education & Events

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Best Practices - Crisis Management Premium
  Why Contingency Planning? Importance and Benefits
Simpkins (2009) argues that Contingency Planning (CP) is probably the most important topic of an organizationís overall strategic plan. The importance of preparing for any contingencies must not be underestimated. Contingency planning takes int...
  Common Errors Leaders Make during Crises
Hirsch (2014) did research on crisis management and examined the most common errors top managers make in times of crisis. He found an interesting pattern of problematic behaviors among senior leaders in crises:
  What Managerial Competencies are Required to Tackle an Organizational Crisis?
In normal circumstances, various competencies are needed for top management to be successful. Besides (!) these regular competencies, certain specific skills and knowledge are crucial to recover from a crisis. The following  

Expert Tips - Crisis Management Premium

How to Develop a Crisis Communication Plan?

In order to develop a successful communication plan during a crisis, following steps should be followed:
1. Identify the audiences for you...
Usage (application): Crisis Management

Top-10 Mistakes in A Crisis

Robert D. Ramsey in Supervision (Oct2004, Vol. 65, Issue 10) gives the following list of things not to do in a crisis:
1. Don't fall apart...
Usage (application): Crisis Management, Education

Multiple crisis

Remember and realize early on that one crisis can lead to another, and multiple crisis can occur at the same time. Consider that most crises can be a ...
Usage (application): Preparing for domino effects

Potential Types of Threats

- Financial (major decline in stock price, market crash, major decline in earnings)
- Workforce (labour strike, labour unrest, labo...
Usage (application): Checklist of Types

Use Belbin for your Crisis team

In order to build an effective contingency team, members need to be intelligently chosen. You need members with the following  

Pitfalls of Traditional Risk Analysis

In their 2000 book "Managing Crises Before they happens" Mitroff and Anagnos explain their critics on traditional risks analysis. The authors ...
Usage (application): Risk Management, Crisis Management

Early Crisis Signals

People frequently wonder how a crisis can occur unexpectedly in a company and if top managers, aware of what is happening, could have undertaken actio...
Usage (application): The earlier the better...

Early Warning Signals

A useful exercise is to think of what events can be considered early warning signals for certain problems to arise. You can add a few of those typical...
Usage (application): Timely Alert System

Preparing your Executive Team for Crisis

Note that crises often happen in different ways than what you imagened and planned for...
That's why preparing and educating your executive team...
Usage (application): Contingency Plans & Manuals

Financial Indicators Check-list

Due to the global economic crisis affecting companies of all industries and regions, there is a lot of interest in crisis signals and what actions can...
Usage (application): Financial Crisis Signals for a Company

Why Society is More Risky than Before

In his 1992 book "  

Moral Intensity: When Will a Decision Be Seen as Unethical?

The financial crisis of 2008 has been partly the result of managers and executives taking excessive risks. That's why Ferguson (2014) wonders when exp...
Usage (application): Risk Management, Business Ethics, Ethical Decision-making, Crisis Management, Corporate Responsibility

Align Your Risk Management Strategy with Investors' View on Risk

Risk is an essential part of any investment.
Modern organizations are giving more attention to their risk profile to better protect their ...
Usage (application): Strategic Risk Management, Transparant Risk Management

Consumer Psychology in a Downturn

Traditional ways that companies used to segment their customers are lifestyle, demographics, etc... These are absolutely not related to consumers' emo...
Usage (application): Re-shape Your Marketing

Marketing Strategies in a Downturn

How marketers respond to the new consumer psychology of the current downturn?
1) For companies with a relatively strong cash position a rec...
Usage (application): Leveraging Crisis

Resources - Crisis Management Premium

Strategic Activism

Activist NGOs have increasingly foregone public politics and turned to private politics to change the practices of firms and industries.
This pa...
Usage (application): Crisis Management

Leading in Times of Crises

Presentation that assesses the characteristics that leaders should have and actions that they should take for effective leadership during crises. The ...
Usage (application): Leadership, Crisis Management

Crisis Leadership

This article proposes that there is, in fact, a difference between crisis management and crisis leadership, and that what differentiates firms that th...
Usage (application): Organizational Crises

How to Give a Media Interview? The ABC and 3R Tool

Former BBC Producer Andrew Carapiet distinguishes 2 different situations in which you are likely to have to talk to the media:
  1. SUCCESS...
    Usage (application): Media Training, Media Training, Crisis Management, Success Stories, Media Interview

Employee Empowerment, Teamwork and Communication

Colorful presentation with speaking notes about 3 tools to improve organizational performance: Teamwork, Communication and Empowerment. The presentati...
Usage (application): Performance Management, Employee Empowerment

Funny Introduction to Business Continuity Planning

This video touches on many key topics of Business Continuity Planning with some humor:
- The Need to have a Backup Plan / Business Continuity Pla...
Usage (application): First Awareness of the Importance and Main Aspects of Continuity Planning

Introduction to Crisis Management

Comprehensive presentation about Crisis Management in organizations that includes interesting facts about performance of various organizations when cr...
Usage (application): Crisis Management, Crisis Categories, Crisis Stages, Crisis Team Formation

7 Steps to Create a Crisis Communication Plan

In this concise video Debbie DeWitt of Visix explains 7 steps to putting together a crisis communications plan:
1. Start at the top
Usage (application): Introduction to Crisis Communication Planning, Contingency Planning

5 Important Things to do When a Crisis has Occurred

Five good crisis management tips by Sam North.
1. Deal with it. Since a crisis not just goes away, you have to confront the crisis, deal wi...
Usage (application): Crisis Management Best Practices, Crisis Management Tips

Effective Crisis Leadership

This is a useful presentation about effective leadership in crises, including the following sections:
1. The importance of skilled crisis leaders...
Usage (application): Crisis Management, Leadership Development

3 Levels of Communication Skills for Managing and Leadership

According to Barrett (2006) leadership communication can be referred to as the determined and purposeful delivery of messages by which leaders guide, ...
Usage (application): Leadership, Communication Skills, Leadership Communication Framework, Barett

Critical Thinking in Decision Making

Presentation about critical thinking for decision making, including the following sections:
1. Failure of Imagination
2. Untested Assumption...
Usage (application): Critical Thinking, Testing Assumptions, Avoiding Fallacies, Avoiding Biases, Dealing with Emotions

The Role of NGOs in Disaster Management

This presentation is about NGOs, specifically focusing on their role in disaster management. The presentation includes the following sections:
Usage (application): NGO, NGOs, Crisis Management, Disaster Management, Crisis Response

The Importance of Reputational Risk and Managing it

This presentation focuses mainly on the importance of reputational risk and the necessity of reputational risk management. The presentation includes t...
Usage (application): Reputation Management, Risk Management

Business Continuity Management and Disaster Recovery Management

Presentation about Business Continuity Planning (BCP) and Disaster Recovery Planning (DRP). The presentation includes the following sections:
1. ...
Usage (application): Business Continuity Planning, Disaster Recovery Planning, Crisis Management, Organizational Absorption

The Six Basic Questions of Risk Management

Managing risk is essentially a process of asking and answering six relatively easy questions no matter what setting (personal, business, etc) or situa...
Usage (application): Initial Understanding of Risk Management, Risk Management Introduction

Strategically Managing Perceptions for Improved Corporate Reputation

Concise presentation that provides an interesting framework for reputation management. It particularly focuses on 4 key activities that together form ...
Usage (application): Reputation Management Activities, Strategic Reputation Management, Reputation Perceptions

Introduction to Business Continuity Management

Organizations have to be prepared to deal immediately with events everywhere around the world (from natural disasters to man-made incidents) that can ...
Usage (application): Understanding of the Need to Have a Business Continuity Plan, Organizational Resilience


Crisis Management


Contingency Plan


Crisis Management


Contingency Plan


Crisis Management


Contingency Plan


Crisis Management


Contingency Plan

Compare with crisis management: Strategic Risk Management  |  Root Cause Analysis  |  Force Field Analysis  |  Brainstorming  |  Theory of Constraints  |  Scenario Planning  |  Game Theory  |  Real Options  |  Stakeholder Analysis  |  Stakeholder Mapping

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