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A crisis is an unpredictable event that disrupts normal business operations and has widespread negative consequences. Effective crisis management involves contingency planning to develop pre-arranged plans to deal with potential crises. During a crisis, a business needs to respond with speed while maintaining transparency, control, and careful communication. They must be open about issues, inform stakeholders promptly, and monitor actions to resolve the crisis effectively.

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Rashid okeyo
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32 views10 pages

Untitled Presentation

A crisis is an unpredictable event that disrupts normal business operations and has widespread negative consequences. Effective crisis management involves contingency planning to develop pre-arranged plans to deal with potential crises. During a crisis, a business needs to respond with speed while maintaining transparency, control, and careful communication. They must be open about issues, inform stakeholders promptly, and monitor actions to resolve the crisis effectively.

Uploaded by

Rashid okeyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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 ■ Communication
❖ Transparency occurs when a business ❖ During a crisis a business will need to manage
is open and honest about the situation. its communications carefully. It will want to
inform and reassure its stakeholders as
It means the business can be trusted by promptly as possible and make sure they are
its stakeholders. 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
❖ This means it is transparent about business.
issues such as the costs involved as a ❖ Communication may need to occur with
customers, employees, investors and the
result of the crisis – for example, emergency services.The business will need to
repairing the damage caused by a think about the timing and content of its
communications – who gets to know what,
storm. Being open about the issues when and how. To manage its communications
involved can help strengthen the brand effectively, a business may employ a specialist
public relations company.
values for its stakeholders.
■ Control
■ Speed ❖ When responding to the crisis, a business must keep
❖ When responding to a crisis, speed is often of the
control of the situation. It must be clear on what the
essence to put into place the actions needed to
actual situation is, who needs to do what and when,
deal with the crisis and ensure everyone who and it must ensure people have the resources to
needs to know what to do is informed and has the undertake their tasks successfully.
information they need. Having a contingency plan
should allow the business to respond rapidly. I

❖ 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.

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