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Crisis management final


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Crisis management final

  1. 1. Chapter 1: Crisis managementTable of contents: 1. History of crisis management. 2. Definitions of crisis management. 3. Objectives and importance of crisis management. 4. Advantages of crisis management. 5. Disadvantages of crisis management. 6. Process (how to plan for the unknown). 7. Challenges in crisis management. 8. Managing the crisis.
  2. 2. References: History( Definitions( Objectives( Advantages and disadvantages of crisis management( Process (how to plan for the unknown)( Challenges in crisis management. ( Managing the crisis(
  3. 3. History:Natural disasters and crises have been an integral part of human historyright from the dawn of civilization. The rise and fall of the Indus Valley andBabylonian civilizations are a testimony to this. In the early days, individualsand communities would lead the response to crisis. However, with theemergence of the modern welfare state and the 20th century trends ofglobalization, urbanization, large-scale migrations of human population andclimate changes, the nature of crises facing nations has increased both inmagnitude and complexity.For example, while the frequency of calamities may have remainedunchanged, increasing population densities and urbanization have resultedin greater impact on human lives and property. In the field of public health,while science has secured a major victory over epidemics, new strains ofviruses and drug resistant micro-organisms have emerged raising thescepter of global pandemics of new and more deadly diseases. Similarly,while frequency of wars has declined, modern weapons and massurbanization have increased manifold the human crisis caused by suchconflicts. The scourge of terrorism has created new types of crises andincreasing dependence on communications and computer networks haveincreased the threat of newer emergencies in case these are disabled byaccident or design. Further, phenomena like modernization, informationexplosion, transnational migrations, and the economic interdependenceamong nations have all contributed to extending the impact of crisissituations over larger areas.
  4. 4. Crisis Management Definitions:Crisis Management:Is the process by which an organization deals with a major eventthat threatens to harm the organization, its stakeholders, or thegeneral public. Three elements are common to most definitions of crisis: (a) athreat to the organization, (b) the element of surprise, and (c) ashort decision time.Crisis Management:Actions taken by an organization in response to unexpectedevents or situations with potentially negative effects that threatenresources and people or the success and continued operation ofthe organization.Crisis management includes the development of plans to reducethe risk of a crisis occurring and to deal with any crises that doarise, and the implementation of these plans so as to minimizethe impact of crises and assist the organization to recover fromthem.Crisis Management:Set of procedures applied in handling, containment,and resolution of an emergency in planned and coordinated steps.
  5. 5. Crisis Management:A crisis is defined by the dictionary as a critical moment orturning point. A business book, on the other hand, might define acrisis as a substantial, unforeseen circumstance that canpotentially jeopardize a companys employees, customers,products, services, fiscal situation, or reputation. Both definitionscontain an element of urgency that requires immediate decisionsand actions from people involved.Crisis Management:Is the process of preparing for and responding to anunpredictable negative event to prevent it from escalating into aneven bigger problem, or worse, exploding into a full-blown,widespread, life-threatening disaster.Crisis management involves the execution of well-coordinatedactions to control the damage and preserve or restore publicconfidence in the system under crisis.Crisis Management:The act of planning for crisis and unexpected situations byforecasting bad scenarios that could happen and then suggestinga solution to each one of them.
  6. 6. Objectives and importance of crisismanagement: Understand the nature of a crisis. Understand impact of a crisis on individuals and how it effects communication Learn tools for managing and communicating information in a crisis.
  7. 7. Advantages of crisis management: Robust crisis management plans can equip organizations to withstand threats to their survival better. Awareness of potential threats can put an organization in a better position to take early action, often helping to avoid more serious problems. Effective crisis management plans can help companies to achieve improved levels of regulatory compliance. Appropriate planning for potential industry-wide crises can give a company the upper hand over ill-prepared competitors. Effective communications during a crisis can help determine how the company’s core values and beliefs have helped it to overcome a major challenge, potentially enhancing public perception of the company. Literally save lives, save money and save an organization from devastation. Any organization that isn’t prepared for a crisis will be constantly at risk. limit any damage that an organization might face Determine which crises an organization is likely to face and the possibility of each. It prepares you to the bad event so that when it happens you don’t panic nor give an emotional decision.
  8. 8. Disadvantages of crisis management: Crisis management planning may seem expensive. Attempts to plan exhaustively for every conceivable threat can be counterproductive. Excessive focus on potential threats can divert management focus on how to capitalize on growth opportunities for the
  9. 9. Process:Crisis management: HOW TO PLAN FOR THE UNKNOWNOne of the clear lessons that needs to be learned from the many and variedcrises and disasters that the world has seen since the start of the newmillennium is that it is not possible to predict every incident that willimpact your company. This makes scenario-based business continuityplanning a risky activity in its own right! And such an approach will lead to afalse sense of security.So, as business continuity planners, how do we deal with a novel orunexpected incident, especially when there is nothing in the text books orexisting methodologies to provide guidance? The answer is to have a wellchosen, highly trained, frequently exercised crisis management team,coupled with strong and clear crisis management plans.In order to deal with the unknown, a two phased planning approach isnecessary:Phase 1 – Pre planning (Risk assessment and mitigation)Phase 2 – Crisis assessment and management planning (Incident resolution)
  10. 10. Challenges in crisis management:Situational conditions:Diversity: emergency response missions vary widely (e.g. local, regional ortrans-border) - the required skills and the forms of cooperation areinterrelatedInterdependency: teams partly depend on each other to perform theiradaptability and creativityDynamic: Rapid changing conditions, importance of improvisations,adaptability and creativityUncertainty: a lack of information can lead to ambiguous assessments andwrong decisionsDuties and responsibilities:Organizational challenges in the search and rescue phase:Goal setting: the assessment of the situation, the derived mobilization ofthe sources (based on an accurate estimation of need)Problem solving: emergency managers have to innovate, adapt andimprovise because plans and procedures often don t fit the circumstancesAnticipation: effective emergency management captures the need toanticipate future problems, creating their solution before they occur.
  11. 11. Managing the crisis:12 ways to handle a crisis publicly Keep cool o Calm atmosphere allows clear and strategic thinking Find out the facts immediately Be credible. State the facts clearly to all Get to the media before the media get to you Tell the correct story before others tell their versions o It is better you tell bad news Prepare a situation fact sheet o Useful for media o Forces management to marshal facts o Useful for staff Monitor key radio and TV news and newspapers Equip and train articulate staff as spokespersons o Do this well in advance Review all internal communication about the crisis o In-house memos often turn up in the media Before crisis, develop relationship with journalists o “Truth well told is your best defence” As soon as crisis breaks, Director sends letter fully explaining facts o Send to donors, partner institutions, the board, and Minister
  12. 12. Use press releases to provide perspective First 24 hours of crisis are critical o What you do can fundamentally affect your reputation o What you do can enhance (or hinder) ability to deal with crisisPreparing for crisis situations and responding appropriately to them if theyoccur can mean the difference between closure and survival, or evenflourishing. After all, crises can be fertile opportunities for learning andchange if an organization is equipped with the right tools to handle them.There are two sides to managing any crisis:-Planning and response.-Organizations that anticipate the possibility of a crisis and prepare properlywill be better equipped to manage such situations or avoid themaltogether.