Understanding Crisis Management
What is crisis management? As experts state, a crisis in an organization, a nation, business, family or in a relationship is unpredictable. They sometimes come in times when you are best prepared though most predominantly when you are least prepared. A crisis may come in many forms, fiscal, relational or natural. And oftentimes when not prepared for, dealt with or responded to accordingly, a crisis could lead to a catastrophe. The crisis, however, is almost never unexpected, which suggests that people in an organization, business, government, family or relationship know the risks of the choices they are making thusly the incidents that may occur.
It is in this light that crisis management is formed inside an organization. In a business organization particularly, crisis management is referred to also as incident management. Often it is associated with business continuity management and emergency management, although these terms only refer to short term or first aid response. A crisis occurs in different sectors of the society and this does not exempt educational institutions, non-profit organizations, and even churches. In crisis management, a crisis is defined in three ways:
- a threat or risk to an organization,
- a brief decisive time or
- any component of surprise.
One of the definitions of crisis in crisis management is that it is a risk to the organization/group/populous as a whole. However, it must be made clear that crisis management is only a component of risk management. The results of failed risk management, in general, can be called a crisis.
To better understand the purpose of crisis management, here are its benefits and objectives.
- Crisis management will give the organization the capability to evaluate a situation both from the outside and inside of the body.
- Aid the organization in the redirection of an unfavorable course.
- Find ways of implementing business continuity despite the crisis.
- Gain better resilience.
- Uphold social responsibility.
- Acquire management skills in dealing with serious events.
- Magnify the expectations and roles of every member.
- Augment morale, confidence, and ability within the body.
- Enhance risk management.
- Crisis management is made to protect the reputation of the organization.
Crisis management has helped many large corporations in the US including Johnson & Johnson. Crisis Management has helped many communities in relation to natural disasters. Crisis management may involve temporary serious incidents; survival, however, is still the key. So don’t allow a crisis to escalate into a catastrophe. Be Prepared.