Crisis management refers to managing unexpected events that threaten an organization. A crisis can seriously harm an organization's reputation, finances, or operations. There are three stages of a crisis: pre-crisis, acute crisis, and post-crisis. The document defines different types of crises including physical damage from natural disasters or non-physical issues like economic or human resources crises. It also outlines the objectives, elements, and strategies for effective crisis management and communication.

1. Crisis Management in Business And Industry

2.  Meaning of crisis:
Crisis refers to sudden unplanned events which
causes major disturbances in the organization.
 According to BARTON : “A crisis is any event that can
seriously harm the people, reputation or financial
condition of an organization”.

3.  Sudden event
 Short notice
 Triggers fear
 Serious consequences
 Lack of information
 Quick response needed
 Unpredictable
Nature of Crisis

4. TYPES OF CRISIS
 Physical Damage Crisis :- A crisis which is characterized by the
physical damage of the individual, organization or the society.
 Causes of Physical damage:-
 Natural crisis :- Every business is vulnerable to natural disasters.
These includes things such as, floods & earthquakes. Although
disasters are mostly unpredictable, beyond our responsibility
and control.

5.  Earthquake :- Earthquake is a sudden release of energy in the
earth crust, that creates a waves. Such as, volcanic
activity, landslides, mining, nuclear test.
 Drought :- Drought is a period were abnormal low rainfall,
leading to a shortage of water supply.
 Floods :- An overflow of a large amount of water beyond its
normal limits.

6. Non Physical Damage :- Non physical damage crisis means
crisis reflected by no physical damage of the individual,
organisation or society.
 Product Issues Crisis :- This type of crisis is a potential crisis
for the company, because the product may fail in-spite of
appropriate research and development techniques are
followed.
 Economic Crisis :- This type of crisis occurs when an
organisation experiences a cash problem.

7.  Human Resources Crisis :- It usually involves lower-level
workers. It take a variety of form. Such as, strikes, sexual
harassment, discrimination and workplace violence.
 Crisis of Organisational Miss-deeds:-
 Crisis of Deception :- Organization face crisis of deception,
because management make fake promises and wrong
commitment to the customer.
 Crisis of Management Misconduct :- Organization face
crisis of miss-conduct, when management indulges in
illegal activity.

8.  Pre – crisis stage
 The Acute - crisis stage
 The Post crisis stage
Stages of Crisis :

9. PRE-CRISIS STAGE
 It is stage which has a opportunity to turn
negative situation into a positive one.
 Here someone are discovers a critical situation
and bring it to the attention of their superior
officer.
 Solutions:
When superior officers known that condition
they don’t want to show outside of organization.

10. THE ACUTE – CRISIS STAGE
 A crisis becomes visible out sides of the organization.
Solution:
 Take charge of the situation quickly.
 Take necessary action to fix the problem.

11. THE POST - CRISIS STAGE
 This is the stage which is process about the recoup their
losses or evaluating the organization changes made in
organization.
 Solution: Recoup any losses evaluate the organization
performance during the crisis.

12. CONSEQUENCES OF CRISIS
• Poor capital
• Loss of assets
• Infrastructure destruction
• Threatened stakeholders
• Damaged reputation
• Lack of cash flow
• others

13. FINANCIAL CRISIS
Meaning
The term financial crisis is applied broadly to a
variety of situation in which some financial assets suddenly
lose a large part o their nominal value.

14. CONSEQUENCES OF FINANCIAL CRISIS
 Complementarities in financial markets
 Leverage
 Asset-liability mismatch
 Uncertainty and herd behavior
 Regulatory failures
 Contagion
 Recessionary effects

15. WHAT IS CRISIS MANAGEMENT??
Meaning – It is a process by which an organisation deals with a
major event that threatens to harm the organisation, its stakeholders, or
the general public.
 The study of crisis management originated with the large scale
industrial and environmental disasters in the 1980s
 Purpose crisis management
• Prevention
• Survival
• Successful outcome

16. OBJECTIVE OF CRISIS MANAGEMENT
 To identify the potential crisis
 To be well prepared for crisis
 To determine the risk
 To understand the consequences of crisis
 To minimize the potential impact of crisis
 To analyse the probability of crisis

17. ELEMENTS OF CRISIS MANAGEMENT
 Understanding
 Crisis Management Planning
 Contingency Planning
 Business Continuity Planning

18.  Inequality
 Social Media
 Role of Apologies
 Structural Functional Systems

19. CRISIS COMMUNICATION
The effort taken by a company to communicate with the
public and stockholders when an unexpected event occurs
that could have a negative impact on the company's
reputation.
Crisis communication team involves,
 CEO
 Head public relations
 Vice presidents, Managers of key departments
 Safety or Security officer
 Company lawyers

20. STEPS IN CRISIS COMMUNICATION
 Anticipate crisis
 Identify crisis communications team
 Identify and train spokesperson
 Spokesperson training
 Establish systems

21.  Identify stakeholders
 Develop holding statement
 Assess the crisis situation
 Finalize and adapt key messages
 Post crisis analysis

22. STRATEGIES FOR MANAGING CRISIS
 Determine the crisis
 See the big picture
 Gather relevant team
 Set timeline

23.  Develop procedural manual
 Seek external experts
 Speak to media
 Fine tune of communication
 Protect reputation