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5.

7 H

Crisis management and


contingency planning
On completing this chapter you • Factors that affect effective crisis management
(AO2)
should be able to:
• Advantages and disadvantages of contingency
Analyse and apply:
planning (AO2)
• The difference between crisis management and
contingency planning (AO2)

Setting the scene


FLIGHT MH370: HOW DO YOU PREPARE FOR THE UNPRECEDENTED?
The public relations team at Malaysia Airlines was strongly criticised for the way in which the airline
disaster was managed and communicated. One airline analyst described the actions of the airline
and the Malaysian government as a ‘masterclass in how not to deal with a crisis’. But is it possible to
prepare a business for a disaster that is completely unprecedented? There was, as a journalist put it,
‘no previous case study to refer to in the crisis management manual’.
The theory of crisis management planning is to consider the likely and less likely (Titanic-type)
scenarios and build a response communication programme that fits in neatly with the operational
actions that the business should be taking.
Malaysia Airlines were accused of:
• taking too long to release news of the plane’s disappearance and appearing to be withholding
information
• being defensive and allowing speculation and rumour to spread
• communicating inappropriately with the passengers’ families – the airline used text/SMS messages to
report that the plane was finally confirmed as having crashed with no survivors.

Points to consider Key concept link


• Is there any point in preparing for disasters Responding to crises and unforeseen events
when completely unique risks can occur? requires careful planning. Attempting to
‘cover up’ a disaster because the organisation
• Why is effective communication important
is in no way prepared to handle it can lead
when dealing with a crisis such as this?
to claims of unethical behaviour. Accidents
• Do you think all businesses should consider happen and stakeholders will respond more
what to do in the event of a major disaster? positively to organisations that are prepared
for their consequences than those that adopt
a culture of ‘hope for the best’ and claim ‘it
was so unexpected’.

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