Topic 1 Definition of Crisis Management

Definition

What does a crisis mean?
A crisis is defined as an unstable or crucial time or state of affairs in which a decisive change is impending. Crises such as the theft of data, the death of a CEO, a fire on the premises, a terrorist attack, natural calamities, workplace violence, or a pandemic can result in a decrease in revenue, the loss of valuable customers, and a possible negative blow to the reputation of the company.

How do you manage a crisis?
Managing the crisis boils down to having a plan in place to deal with difficult situations that pose a threat to the organization’s long-term survival. It involves listing out all the steps to prevent, assess, manage, and resolve the crises with a structured approach.

Scenario

Picture this: you’re hyping up your employees for the annual company retreat. You can’t wait for everyone to bond over games and team-building activities. The event starts tomorrow and you want every detail of the weekend to run smoothly.

The majority of the activities will be held outdoors, so when thunderstorms suddenly hit town, you panic! You were so focused on planning the event that you didn’t consider a backup plan for bad weather. Changing things last minute will result in thousands of euros lost.

What’s the lesson? Being a good leader requires more than positivity and solid communication skills. Knowing how to plan for both the good times and bad builds trust with your team and shows preparedness.

Crisis management is an essential part of any business plan because without it, your team won’t be prepared when the unexpected happens. We’ll discuss what a crisis management plan is and how to prepare your company for uncertain times.

Source: Free Photo by jcomp | Serious young businessman looking at financial report (freepik.com)