Crisis Management

What Is Crisis Management?

Since crisis situations are unpredictable and require intervention, it is possible for companies to cope effectively with crises if they are prepared for and have the skills and resources to manage them. For that, companies need to have effective crisis management. Companies must meet certain conditions for effective crisis management. These conditions can be categorized as:

Corporate Strategies: Corporate strategies include the plans and procedures necessary to respond to and deal with a crisis. For effective crisis management, it is important that companies have a contingency plan for every possible crisis at all times. And for unpredictable crises, he needs to have strategies to create the contingency plan in a short time.
Corporate Structure: The corporate structure of a company is related to whether it has the resources needed in the crisis response or coping phase. Effective crisis management requires companies to have the human resources, methods and technologies that are right for the job.
Corporate Culture: The corporate culture, which plays an important role in both crisis response and crisis prevention, is linked to the behavior and attitudes of all employees. A strong corporate culture gives the company an effective crisis management capability for crises primarily due to corporate factors, while largely preventing crises that arise due to corporate factors.
Employee Qualities: Crisis management also takes into account the qualities of employees involved in the internal structure of a company. The attitudes, skills and competences of employees, especially in the crisis response process, play an important role in both crisis prevention and response.

What Are The 5 P’s Of Crisis Management?

The National Crisis Management Framework provides a comprehensive approach to understanding the components of a crisis or the 5P’s of crisis management: Predict, Prevent, Prepare, Perform and Post-Action and Assessment. The illustration shows the escalation of crisis—from convergence of indicators to the occurrence of an incident, critical incident and a full-blown crisis—and the interaction of the 5P’s of crisis management.
Although the 5P’s are interrelated crucial components of effective crisis management, these components do not happen in phases, whether sequential or consequential. Addressing complex or multi-dimensional crises require activities under ‘Predict’, ‘Prepare’ and ‘Prevent’ to be enacted simultaneously and in a continuous manner even while executing activities under Perform or responding to an ongoing crisis or conducting Post-Action and Assessment activities.

Why Is Crisis Management Important?

The importance of crisis management in business is at least one element that is important for the continued existence of a business. Only successful business owners in crisis management can solve internal and external problems. Effective crisis management, regardless of the nature of a business, is important because it will minimize the damage to the organization. In addition, large-scale industrial and environmental disasters in the 1980s triggered crisis management work. Crisis management is considered the most important process in public relations.

How to Manage a Difficult Crisis?

The importance of crisis management in business provides a much more honest look at how a company manages a difficult crisis than any meticulously crafted press release on how to serve customers. In addition, there are many examples of ineffective crisis management. Failure to manage a crisis can damage a company’s reputation, geographic location, employees, management and even entire communities. The domino effect of crises can affect areas beyond the business world. Large quantities can also be written that make it difficult for practitioners and researchers from many different disciplines to synthesize the knowledge based on crisis management. In addition, there are problems with the failure to effectively manage crises to inform the planning and implementation of business failure and business crisis management strategies.

How Can You Prevent Crisis?

Preferably you want to prevent and avoid the crisis before it turns out to be one. Being aware of potential threats to your organization and having the resources to deal with them is critical. You should know who and what poses a threat to you. Some of the important reasons leading to the crisis are: financial crises, personnel or institution performance, criticism from outside the institution, physical conditions (fire/theft/illness etc.). Any strategy devised to contain the institutional crisis must include a plan for how to communicate with the media and act on the assumption that bad news will somehow be heard by the public.

How Is Crisis Management Done?

The process of crisis management, when addressed step by step, produces a goal-oriented, straightforward strategy without distraction. Strategy and planning are the same thing as crisis management. In the crisis management phases, the way the crisis is handled can change depending on the crisis the company is experiencing and the structure of the company itself. In general, a proper crisis management process involves taking into account the following steps:
● Observation and Evaluation of Observations
● Classifying Crises and Addressing Their Impacts
● Building a Team Responsible for Crisis Communication
● Managing Communication for False Information or False Practice
● Leveraging Feedback at All Stages
● Auditing and Analyzing All the Effects of the Crisis