What is Crisis Management?

Crisis management, a facet or risk management, is a process-based approach to addressing highly unfavorable situations arising within an organization. It involves developing a strategy and plan for addressing the cause and consequences of an unfavorable situation. It generally involves establishing new processes defined by clear roles and responsibilities. 

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The processes must be acknowledged and understood across the company.

• Note: Sub-processes within crisis management include:
  • Emergency Management - This is the process of stopping or alleviating the immediate negative impact of a crisis scenario. It can be understood as stemming from the severity of the effects of the crisis situation to allow for long-term management of the negative consequences.
  • Business Continuity Management - Undertaking the steps necessary to allow for the continuation of business operations in the midst of or in response to a crisis.

The objectives of crisis management include:

• Prevention - Preventing the occurrence of a negative situation.
• Avoidance - Avoiding the negative consequences associated with a potential crisis.
• Assessment - Understanding the effect or impact of an unfortunate situation or circumstance.
• Management - Organizing organizational resources through process and procedure to contain and mitigate the effects of an unfavorable situation.
• Conclusion - Bringing about an end to the negative situation giving rise to the organizational crisis.

Components of a crisis management plan include:

• Processes, procedures, and roles in addressing the reality or perception of a crisis.
• Defining what constitutes a crisis through recording information and establishing metrics for a response.
• Establishing lines of communication with internal and external stakeholders.

What are the most common categories of crises:

• Natural disaster
• Technological crisis
• Confrontation
• Malevolence
• Organizational Misdeeds
• Workplace Violence
• Rumors
• Terrorist attacks/man-made disasters

What is Crisis Management Strategy?

Crisis management strategy, a facet of management strategy, is a strategic plan with missions, goals, and objectives related to avoiding, preventing, identifying, managing, and ending crisis situations. This includes identifying impending situations that can result in a crisis. Developing a strategic plan for responding to the situation through new processes and activities. Then implementing a process for maintaining and monitoring the effects of the situation. Types of Strategic plans include:

• Crisis Management Plan - These deals with planning the organizations response to the crisis situation.
• Contingency Planning - This involves developing plans for potential scenarios that could lead to a crisis. It is a form of preemptive planning that ensures the organization is prepared for these situations.
• Business Continuity Planning - This is a plan for restoring or maintaining business operations that are harmed or negatively affected as a result of the crisis.