Crisis Prevention in Organization

Crisis Prevention in Organization

Introduction

Globalization has increased the intensity and frequency of crisis. What may have previously affected a specific area, population, business or industry; will now have an affect much larger than the sphere of its locale (Kouzmin, 2008). The global financial crisis may be an example of a man-made catastrophe which had global implications. However, natural calamities can also cause damage depending on its recipients.

In light of the above, the need for viable strategies for mitigation of such events is a dire need in this modern day. Managers of both communities and enterprise need to envision the possibility of such events, and have mitigation plans for damage prevention and control, as well as continuity (Bernstein & Bonafede, 2011).

For understanding the further study on this subject, there lays various scholarly studies conducted by various authors from which few of them and their study will be discussed in this study. One of the studies conducted by Edward S. Devlin for understanding the primary principles of Crisis management in organization and planning of certain plans that can result in prevention of crisis in organizations is discussed in elaborating crisis management. The book 'Crisis Management Planning and Execution', gives the understanding of the primary principles of disaster mitigating from an enterprise stand-point.

Detect risks before they occur, is a determining factor in measuring the success of any company. Today, many companies do not have a manual of policies and procedures for crisis management, these companies face lack of rise among successful companies in the market. Most of the time company's flaws are spread by the media, denigrating the image of the organization and making it an unimaginable focus. This is precisely what must be avoided by organizations: counter any event that threatens the reputation of the company. This study is the research analysis of preventive measures and steps that should be followed by organizations while dealing with the crisis management issues. The scholarly advises in Crisis management study gives a detailed study on how organization can mitigate risk and take preventive actions against major crisis.

Discussion

Crisis management is the set of measures taken to respond to an emergency or catastrophic event in order to facilitate mitigation, recovery efforts, and continuity; along with pre-set standards operating procedures in place to deal with such occurrences'.

In Devlin's book, he has described crisis management as “special measures taken to solve problems caused by a crisis”. In addition, he suggests that the best disaster recovery plans involve an organization's executive management in active roles. Such plans not only incorporate their expectations of actions in such situations, but also increase their efficacy since actions may be defined in line with job responsibilities at task levels. Crisis planning should also be all inclusive and generalized for all kind of crisis events with all possible risk factors covered (Devlin, 2006).

The book highlights three major components of such a contingency plan; prevention, emergency response, and business continuity. A stellar prevention plan reduces the risk of damage from any ...