Crisis Management



Crisis Management

The businesses in the current era are faced with many uncertainties and unpredictability. There are phases of economic crunch, financial instability, weather emergencies and other such issues that may hinder the progress and prosperity of the business organizations. In such a phase, it is essential that the business organizations work with the support of contingency plans so that there is not much of the lag time that is to be encountered by this. This paper presents the most debatable issue of the business organization these days, the crisis management. Much of research has been conducted by the researchers, business managers, and other relevant people on the subject. This paper will present an example to support the theory related to the crisis management situation taking place at any organization.

Crisis Management

The concept of crisis management pertains to the holistic management process which is utilized for the purpose of identifying the possible impacts that tend to be a threat towards the organization and provides it is a structure for establishing the resilience. It also facilitates a business organization with the ability for responding in an effective manner to crisis situations and shields the basic interest of its prime brand, reputation, stakeholders, and value-adding activities. Besides this, the application of crisis management techniques also supports the companies in restoring their operational capabilities in an effective manner. Therefore, it pertains to being a process, through which a business organization tackles and handle all its prime events that pose threats to the stakeholders or the general public related with it (Borodzicz, Edward, 2005). Thus, crisis management is basically a process with the help of which the business organization tackles the large business event which may pose consequences of being the harm for the organization. According to Venette, the situation of crisis may prove to be a procedure of transformation in such circumstances that does not maintain the old system.

The theory of crisis management comprises of the various aspects that include:

Procedures and techniques that are utilized in order to provide response to the perception and reality of crises;

Establishment of the metrics in order to elaborate upon and define the different scenarios that may contain a crisis thus need to ultimately trigger the essential response mechanism;

Coordination and communication that takes place in response to the scenarios of emergency management.

The methods of crisis management within an organization or a business are referred to as the Crisis ...