What is crisis?

How can crisis be managed?

Crisis Crisis management
This is about the response that a
business takes in the event of an
● This is an unpredictable event actual crisis.
that has widespread negative
consequences

● In Business management concept Contingency Planning

crisis causes a disruption in This is about devising and
the normal operations of the developing pre -arranged plans to
business. deal with crisis.,incase it actually
occurs.
■ Transparency
❖ Transparency occurs when a business
is open and honest about the situation.
It means the business can be trusted by
its stakeholders.
❖ This means it is transparent about
issues such as the costs involved as a
result of the crisis – for example,
repairing the damage caused by a
storm. Being open about the issues
involved can help strengthen the brand
values for its stakeholders.
■ Communication
❖ During a crisis a business will need to manage
its communications carefully. It will want to
inform and reassure its stakeholders as
promptly as possible and make sure they are
not getting inaccurate or false information from
other sources. If stakeholders learn about
aspects of the crisis from other sources, they
may lose trust and goodwill in relation to the
business.
❖ Communication may need to occur with
customers, employees, investors and the
emergency services.The business will need to
think about the timing and content of its
communications – who gets to know what,
when and how. To manage its communications
effectively, a business may employ a specialist
public relations company.

■ Speed
❖ When responding to a crisis, speed is often of the
essence to put into place the actions needed to
deal with the crisis and ensure everyone who
needs to know what to do is informed and has the
information they need. Having a contingency plan
should allow the business to respond rapidly. I
■ Control
❖ When responding to the crisis, a business must keep
control of the situation. It must be clear on what the
actual situation is, who needs to do what and when,
and it must ensure people have the resources to
undertake their tasks successfully.

❖ The progress and outcomes of any actions taken must

❖ if the response is slow, the crisis could get worse be monitored closely to ensure they are effective. This
or the coverage of the crisis could build in a way is important given that many things are likely to be
that damages the business. However, a business happening at the same time.

must be careful not to act too quickly and regret it.

It must be careful, for example, not to say
something that later turns out to be false because
this could lead to a great deal of media criticism
and potentially legal action.