Introduction
A crisis always requires decision-making and action to prevent or reduce damage. While it may not be possible to plan for every probable crisis, it is crucial to understand that a crisis can be avoided (Dobrowolski, 2020). Businesses should establish plans to avert crises and develop a culture that allows a system to gather resources to handle any possible crisis (Zdziarski, 2020). Crisis management planning enables responsible teams to identify probable threats and the necessary details and resources to address them (Stone et al., 2022). Having adequate time to understand the plan’s contents is advantageous to the team.
Crisis Management
A crisis management plan is essential for firms to mitigate legal exposure when a crisis arises. If the organization fails to purchase and install the relevant crisis management resources, the senior stakeholder and the organization may be sued for damages (Kovoor-Misra, 2019). For instance, regulators have determined that planning is mandatory in some industries. Failing to follow such guidelines can result in legal fines and penalties.
While a crisis may not cause a company to shut its doors completely, it can significantly prolong the recovery process. Poor preparation can prolong the crisis action stage, resulting in significant damage. Effective planning can help the crisis response team reduce action time and downtime, allowing the company to resume operations quickly and increase productivity (Pearson & Mitroff, 2019). In cases where an organization cannot respond to a crisis, a bad reputation can be earned from such happenings. Additionally, crisis management planning ensures the safety and well-being of employees.
Key Stages of Crisis
At stage 1, the prodromal phase, the event has not occurred, or it is not recognized as possible. At this time, the organization should assess the impact of the actual crisis on its operations, employees, stakeholders, and other parties associated with the company (Meyers & Holusha, 2018).
At stage 2, the crisis is unfolding, and there is no turning back. The organization must respond quickly to the event to minimize further damage (Zamoum & Gorpe, 2018). The goal is to manage the utilization of available resources and capabilities.
The company must review the risk assessment details to respond swiftly and mitigate losses (Antonović & Stanković, 2021). This is an intense but brief phase where one must recognize the specific threat, identify those involved, and determine the appropriate response plan to activate (Canton, 2019). The company’s preparedness level is tested at this stage based on the damage inflicted on the organization by the crisis.
At stage 3, the appropriate response is activated, and proper resources are deployed to address the issue. The crisis response team is taking the necessary actions, which may take a considerable amount of time if there is poor preparedness (Ryder & Madhavan, 2019). Mobilization of emergency services may be necessary, such as calling 911 in the event of a hazardous spill at a facility. In the event of an IT outage, one can contact service providers to determine when the services will be restored (Chakraborty & Devnath, 2020).
Conclusion
If there is a plan and an emergency team in place to act on it, responding to a crisis will be easier. The team will be prepared well because it understands the appropriate steps to take during a crisis (Kanel, 2019). Furthermore, the team understands the capabilities and potential issues that can arise, thereby increasing its chances of mitigating risks and preventing crises (Ansell & Boin, 2019).
References
Ansell, C., & Boin, A. (2019). Taming deep uncertainty: The potential of pragmatist principles for understanding and improving strategic crisis management. Administration & Society, 51(7), 1079-1112. Web.
Antonović, R., & Stanković, M. (2021). Crisis Communication and Risk Management. PaKSoM 2021, 31.
Canton, L. G. (2019). Emergency management: Concepts and strategies for effective programs. John Wiley & Sons.
Chakraborty, A., & Devnath, R. (2020). Fire Crisis Management-cesc’s experience as Distribution Utility. Water and Energy International, 62(12), 15-21.
Coombs, W. T., & Laufer, D. (2018). Global crisis management–current research and future directions. Journal of International Management, 24(3), 199-203. Web.