Having a crisis management strategy in your business can help you to face sudden emergencies or unexpected events. With today’s article, you will handle every crisis without strong consequences for the business.
What is crisis management?
First, you need to know what a crisis is, which is defined as an unexpected situation that can lead to chaos, and generate anxiety within the people involved. This situation can demand all the attention of the involved parties, because it can affect everybody, from individuals to groups.
Business crises are more dangerous; this is because it can affect thousands of people at once. Every thread to the process within the organization can negatively affect if it isn’t handled with the utmost care and on time. The crisis can damage public safety, financial security, and of course, destroy its reputation. Among their characteristics, you can find: a sequence in the situations, it can arrive on short notice, and produce anxiety and fear between the employees.
Here is where crisis management is useful, with a good strategy, the team in charge can proceed with systematic steps, to resolve every possible situation that a crisis can produce. Every crisis can cause failures in business operations, which results in huge losses.
Good crisis management will help prepare workers to face any situation, adjust to changes, understand reasons and consequences. It also helps managers, supervisors, and leaders work alongside their employees to resolve the crisis.
A crisis can affect a business as the following:
- Damage a company’s reputation.
- Lose revenue streams.
Crisis management: types of crises
These are the types of crises that every company could potentially face, which is the main reason to have good crisis management.
- Technology: most organizations and businesses around the globe depend on technology. A breakdown with tech appliances, or servers, can create huge problems and consequences. With this crisis, the company faces hardware problems, the software gets compromised and hacker attacks, among others. The team needs to mitigate the losses, and put in place a plan to get things in order pretty soon.
- Finances: when a company losses a large amount of money is dealing with a financial crisis. This can happen because of bankruptcy, revenue losses, a country’s inflation, or a change in the market. This is one of the hardest crises for every business, it can be solved, but it must be handled carefully, and speed is the key. Here is where harsh decisions take place, and adaptation can be a solution. Another one is having an emergency fund, only to be used for a crisis.
- Nature: here, there isn’t much to do; nature cannot be tamed; earthquakes, volcano eruptions, floods, storms, hurricanes, tornado, among others, are natural crises. Normally they occur on large scales. The best way to face them is to be prepared for them, training workers on what to do with such events, having emergency exits, and using resistant buildings.
- Malice: success can present many adversaries, competitors, or rivals; each company uses tricks and tactics to be better than others; after all, a little healthy competition is good for everyone. But, when the competition is starting to show signs of bad and nasty tactics, the image of the parties involved can be destroyed. These crises are hard to resolve and can require expertise.
- Deception: this can sound like a movie or TV show plot, but it can happen. A person inside the organization can use secret or important information to damage its reputation, earning something in exchange. This can be solved with a legal team, and having a strategy in place to mitigate the damage.
- Confrontation: this happens when an individual or a group of people have a demand to ask the organization, tanking it to the legal field. This could occur to an organization, an institute, or the government. The most common methods are boycotts, strikes, blockade, or picketing. The only way to solve this crisis is with the law, the police, and a magnificent legal team.
- Organizational misdeeds: here is where the management decides without consulting or thinking about precautions. It usually can lead to court, which can become in a difficult situation, and of course, can cause financial and reputation problems.
- Workplace violence: this happens among the employees, and even between supervisor or managers. When workers fight during work hours can disturb the process and the environment. This has deep roots, external conflicts, and can lead to problems with the workers’ mental health.
Good crisis management can help to resolve, deal, or face any of the crisis stated above. The most important part here is to be ready for the challenge and to accept any outcome. Keep reading amazing articles with 786 Magazine, and keep updated with more facts and post with our social media.
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