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Crisis management

Crisis management involves addressing unexpected events that threaten an organization, characterized by a threat, surprise, and the need for quick decisions. It includes identifying types of threats, making various business decisions, and implementing a structured decision-making model. Effective crisis response requires preparation, incident management, and post-action assessment to improve future prevention and response strategies.

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Janesha Mae Posada
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8 views3 pages

Crisis management

Crisis management involves addressing unexpected events that threaten an organization, characterized by a threat, surprise, and the need for quick decisions. It includes identifying types of threats, making various business decisions, and implementing a structured decision-making model. Effective crisis response requires preparation, incident management, and post-action assessment to improve future prevention and response strategies.

Uploaded by

Janesha Mae Posada
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Crisis management is the process by which an

organization deals with a disruptive and Types of Threats


unexpected event that threatens to harm the
organization or its stakeholders Direct threat means a significant risk of
substantial harm to the health or safety of
Three elements are common to a crisis; others that cannot be eliminated
a. a treat to the organization,
b. the element of surprise - The importance Indirect threat tends to be vague, unclear, and
of surprising your readers should never be ambiguous.
forgotten by any aspiring writer. In fact, it
should always be considered a vital part of Veiled threat is one that strongly implies but
a storyteller's toolkit. does not specifically threaten violence.

c. a short decision time Conditional threat is the type of threat often


seen in extortion cases. It warns that a violent
Different types of decisions act will happen unless certain demands or
terms are met.
Special pricing decisions: these usually involve
‘one off orders from customers that are not Short-run decision making consists of choosing
expected to recure and where a lower selling among alternatives with an immediate or
price may be offered limited end in view.

Product mix decisions where there is a The Decision-Making Model


capacity constraint: these decisions arise where
a business has, in the short term, limited or The six steps in the decision making process are
restricted capacity in some aspect of its as follows:
production (e.g. machine hours).
1. Define the problem.
Make or buy decisions: this requires a 2. Identify alternatives as possible solutions
company to consider the possibility of to the problem; eliminate alternatives that
outsourcing some or all of its production. are not feasible.
3. Identify the relevant costs and benefits
Whether to replace equipment: the business associated with each feasible alternative;
must consider the costs and benefits involved eliminate irrelevant costs
in replacing existing equipment with new 4. and benefits from consideration.
equipment 5. Total the relevant costs and benefits for
each alternative.
Discontinuance decisions: 6. Assess qualitative factors.
the business must consider its current 7. Select the alternative with the greatest
product/service/customer/location mix and the overall benefit.
impact on its costs and revenues if a decision is
taken to discontinue one or more of the Predict this is an attempt to remove
existing products/services/customers/locations uncertainty from the future. The Predict
component is undertaken through Strategic,
Venette argues that “crisis is a process of Operational and Tactical Situation Awareness
transformation where the old system can no (SA) processes. Prediction includes: Updating of
longer be maintained.
Inputs-threats, Intelligence about possible and regulations computer files, offers poor
threat, Knowing possible targets and knowing customer service that goes viral online.
the vulnerabilities.

Prevent this is a deliberate action that aims to An incident is an event that could lead to loss
avoid future harm by addressing its causes. This of, or disruption to, an organization's
is achieved through a long-term strategy and operations, services or functions.
an immediate operational strategy. To
minimize the impact of man-made incidents, Incident management (ICM) is a term
there should be vigilance and alertness to signs describing the activities of an organization to
and manifestations of suspicious looking identify, analyze, and correct hazards to
individuals. Prevention includes Operation prevent a future re-occurrence
security,
 an incident response team (IRT),
Prepare this is a core component of effective  an incident management team (IMT), or
response and covers six essential activities as  Incident Command System (ICS).
follows: as follows: Planning, Organizing
Training, Equipping, Exercising, as well as
Evaluating and Improving Incident management is the process of
analyzing and correcting project interruptions
Perform the actual implementation of as quickly as possible. That means more time
contingency plans when a crisis occurs, despite spent on delivering impact-not to mention
the pro-active measures undertaken. Once a completing the project at hand.
crisis occurs, priorities shift from building or
enhancing capabilities to employing resources  is the process of detecting, investigating,
to save lives, protect property and and responding to incidents while they
environment, and preserve the social, happen in as little time as possible. While
economic and political structure of the it's not always a permanent solution,
jurisdiction. Performance has three sub stages incident management is important in order
such as: initial action main action, post action. to finish projects on time, or as close to the
set deadline as possible.
Post-Action and Assessment a component
which begins when the crisis has been An incident response team (IRT) or emergency
addressed and the situation is deemed clear. It response team (ERT) is a group of people who
is in this phase where the organization is prepare for and respond to any emergency
returning to business as usual, Post-action incident, such as a natural disaster or an
activities seek ways to evaluate and improve interruption of business operations.
prevention, preparation and the actual
execution,
Incident response team functions and
Self-inflicted crises are caused within the responsibilities
organization, such as when an employee
smokes in an environment that contains  Leadership
hazardous chemicals, downloads questionable  Investigation
demand protocols regarding ethics, policies,  Communications
rules,  Documentation
 Legal representation.
Incident response team location Locations of
incident response teams can vary. Unless a
company has a single location, it may not be
feasible to keep a full incident response team
at each location

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