Crisis Management

Crisis Management
Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited
Agenda
➢ What is Crisis Management?
➢ Types of crisis
➢ Why is Crisis management important?
➢ 4 stages of Crisis management
➢ Crisis management in public relations
➢ Crisis management strategies
➢ Crisis management examples
DO NOT WRITE ANYTHING

HERE. LEAVE THIS SPACE FOR
WEBCAM
What is Crisis Management?
What is a Crisis?
A crisis is a state of mind, an internal feeling of utter

confusion and anxiety to the point that previously efficient
coping mechanisms fail and poor decisions and behaviors
take their place. As a result, the person in crisis may feel
puzzled, vulnerable, nervous, fearful, furious, guilty,
hopeless, and powerless.

WEBCAM
Crisis Management definition
Crisis management is the process by which an

organization deals with a disruptive and unexpected event
that threatens to harm the organization or its
stakeholders
Crisis management in business is the art of dealing with
sudden and unexpected events that disturb the
employees, organization, and external clients.
Crisis management is the work of senior managers, public
relations representatives, human resource managers and
other critical operational staff. DO NOT WRITE ANYTHING
WEBCAM
Types of Crisis
Types of Crisis
Financial Crisis
A financial crisis occurs when a company loses a significant quantity of money all at once,
making it difficult to satisfy financial obligations or service debts. When a company loses
three key clients that account for 45 percent of its revenue, this is an example of a financial
crisis. The following are some of the reasons that can contribute to a financial crisis:
• Loss of revenue
• Inflation
• Bankruptcy
• Loss of market
• Sudden change in market trends
Types of Crisis
Financial Crisis
An organization's capacity to serve clients effectively can be harmed by a financial crisis. This
type of occurrence also increases the danger of talent turnover, making it critical to be
proactive in crisis management to avoid business destabilization.
Measures that can be taken to contain the financial crisis include:
• Having a crisis fund or seeking alternate sources of financing in such instances both are viable options
• Developing more effective revenue-generating tactics
• Finding new markets or altering your business model
• Identifying partners or investors who can help with emergency funding
• Having a crisis management plan in place to help you regain your operations
and minimize the damage is essential.
Types of Crisis
Technological Crisis
✓ Its operations are hampered by the failure of technological tools. Hardware and software
failures, as well as industrial accidents, are examples.
✓ If a competitor develops a technology that allows them to reduce production costs and
launch items faster, they can swiftly gain market share and reduce your revenue.
✓ Investing in backup solutions that can fill the hole, if your main infrastructure becomes
unusable, is a smart technique for preventing and managing technology crises.

WEBCAM
Types of Crisis
Personnel Crisis
✓ A personnel crisis occurs when a member of your organization engages in illegal or

unethical behavior that negatively impacts your company's public image.
✓ The manner in which the organization handles the matter is critical, as it can assist them
in retaining a more good public image.
✓ When your company is facing a crisis as a result of an employee's actions, it's critical to
propose a balanced plan that directly addresses the problem.
✓ Both the employee’s legal rights and protection of the reputation of your business need
to be considered
WEBCAM
Types of Crisis
Organizational Crisis
✓ Crisis of deception: When an employee of a firm misrepresents facts about the

company, it harms its reputation and misleads others, this is known as a deception crisis.
Taking legal and disciplinary action against the employee is a good way to deal with the
situation.
✓ Crisis of management misconduct: In this case, a crisis arises as a result of
management's unethical conduct, such as selling counterfeit goods, selling customers'
personal information, or engaging in unlawful operations.
✓ A crisis of skewed management values: This occurs when management makes a
decision that benefits the company in the short term while ignoring the long-term
ramifications, putting investors' money at risk. To achieve their goals, management
DO NOT WRITEmay
ANYTHING
suppress information concerning investments or abuse their power. WEBCAM
Types of Crisis
Natural Crisis
✓ Natural disasters such as earthquakes, tornadoes, tsunamis, and hurricanes can affect a
company's operations. While most businesses recover rapidly after natural catastrophes.
✓ Particularly those in the extractive and power industries, maybe badly harmed.
Confrontational Crisis
✓ When an individual or a group of people has particular demands and takes action to
compel management to meet those demands, a confrontational crisis emerges.
✓ Strikes, boycotts, and workplace blockades can result from confrontational crises.
✓ Negotiation, ideally with the assistance of a professional negotiator, is one of theWRITE ANYTHING
DO NOT
finest strategies to handle confrontational issues. WEBCAM
Types of Crisis
Crisis of Malice
✓ A malice crisis emerges as a result of unhealthy rivalry or competition. A competing
corporation, for example, could conduct a smear campaign against a top leader or even a
product line in order to undermine a more successful competitor and lose public trust and
market share
✓ Another example is when people create unfavorable evaluations or spread misinformation
about a company's products or services in order to undermine client confidence.
Human-made Disaster
✓ A human-caused disaster is a type of crisis brought about by people's actions. A
cyberattack, for example, can impair a company's activities and make it impossible
to restore them.
✓ Financial crises, such as those caused by high-level market manipulation and
WEBCAM
transportation mishaps,Proprietary
cancontent.
also cause
©Great a corporation
Learning. All Rights Reserved. Unauthorized use to face
or distribution a significant problem.
prohibited
Why is Crisis Management
Important?
Why is Crisis Management important?
Importance of crisis management
➢ Individuals are prepared to tackle unforeseen events and harsh conditions in the
workplace with courage and resolve them through crisis management.
➢ Employees adapt well to the organization's unexpected adjustments.
➢ Employees can comprehend and assess the reasons for a problem and respond to it
in the most effective manner feasible.
➢ Managers can use crisis management to design methods to emerge from unclear
situations and to decide on a future course of action.
➢ Managers can use Crisis Management to detect early indicators of a crisis, alert staff
about the consequences, and take required precautions.
WEBCAM
4 stages of Crisis Management
There are four phases of crisis management that can help keep a focus on the
organization’s long-term mission and goals.
Phase-1: Mitigation
✓ Form a risk management group.

✓ Choose a coordinator who is ready to take action.
✓ Create or update a business continuity plan (BCP) to decide how you will
service the community of your institution during a crisis.

WEBCAM
Phase-1: Mitigation
✓ Create a communication strategy for communicating with on- and off-campus

stakeholders and communities.
✓ Establish communication channels and determine your greatest sources of
information in times of crisis.
✓ Understand the budget implications and which areas of revenue and
spending are most likely to be affected so you can receive financial help
when you need it.
WEBCAM
Phase-2: Preparedness
✓ Review insurance coverage on a regular basis to ensure that everything is
covered and make any necessary changes.
✓ Make a plan to hold virtual/remote board meetings.
✓ Make a crisis communication strategy.
During this phase, the board can assist by:
✓ Defining criteria for gaining access to financial reserves
✓ Examine your bylaws to see if virtual board meetings and voting are
possible.
✓ Examining the crisis communication strategy
WEBCAM
Phase-3: Response
✓ Prioritize the most critical concerns.
✓ Keep in touch with your important stakeholders on a regular basis.
✓ Examine the financial implications and make contingency preparations.
✓ Put the business continuity plan into action.
✓ Implement a remote work policy.
✓ Reorganize your staffing requirements.
✓ Manage the stress reactions of all stakeholders, including employees,
trustees, contributors, and funders.
✓ Stabilize cash flow by gaining access to response/recovery money and
insurance benefits. DO NOT WRITE ANYTHING
✓ Observe where the tragedy reveals organizational flaws and start prioritizing
WEBCAM
how to address them inProprietary
the content.
future.
©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited
Phase-4: Recovery
✓ To assess what is possible in this new environment.
✓ Talk to your peers and pick up tips from them.
✓ As needed, implement a strategic plan.
✓ Obtain funding for recovery.
✓ Address any organizational flaws that emerged as a result of the crisis.
✓ Create transition plans for all stakeholders for the new normal.
✓ Recognize and manage all stakeholders' ongoing stress and trauma.
✓ Get out of the trap of emergency decision-making and start making better
long-term choices.
✓ Identify fresh investment and divestiture opportunities.
✓ Stakeholder agreements, contracts, and other agreements should be HERE. LEAVE THIS SPACE FOR
WEBCAM
renegotiated. Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited
Crisis Management in public
relations
Crisis Management in public relations
The Role of PR in Crisis Management
➢ In a crisis, the company should act quickly.

➢ The public is more inclined to forgive an honest error than a
premeditated deception
➢ Be informative, so that rumors aren’t created
➢ People will be more forgiving if it is evident that the corporation cares
about the crisis victims.
➢ It is crucial to be concerned and show the public that you care.

WEBCAM
Crisis Management strategies
Crisis Management strategies
How to solve Crisis Management?- Prevention plan
➢ Improve Communication
➢ Implement Reverse Engineering
➢ Audit Risks
➢ Collect Intelligence
➢ Maintain Social Responsibility

WEBCAM
Crisis Management Examples
Crisis management Examples
Successful crisis management examples in India
➢ Nestle Maggi Noodles Crisis management case study
➢ Cadbury Crisis Management (Worm Controversy) case study

WEBCAM
Summary

Crisis Management

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Crisis Management

Uploaded by

Copyright:

Available Formats

Crisis Management

➢ What is Crisis Management?

➢ Why is Crisis management important?

➢ 4 stages of Crisis management

➢ Crisis management in public relations

➢ Crisis management strategies

➢ Crisis management examples

DO NOT WRITE ANYTHING

A crisis is a state of mind, an internal feeling of utter

DO NOT WRITE ANYTHING

Crisis management is the process by which an

DO NOT WRITE ANYTHING

✓ A personnel crisis occurs when a member of your organization engages in illegal or

✓ Crisis of deception: When an employee of a firm misrepresents facts about the

✓ Form a risk management group.

DO NOT WRITE ANYTHING

✓ Create a communication strategy for communicating with on- and off-campus

The Role of PR in Crisis Management

➢ In a crisis, the company should act quickly.

DO NOT WRITE ANYTHING

➢ Implement Reverse Engineering

➢ Maintain Social Responsibility

DO NOT WRITE ANYTHING

➢ Nestle Maggi Noodles Crisis management case study

➢ Cadbury Crisis Management (Worm Controversy) case study

DO NOT WRITE ANYTHING

You might also like