Business Management HL: Crisis management and contingency planning

Crisis Management

involves the steps a business can take to limit the damage caused by an unpredicted event or crisis. The aim of crisis management is to return to normal business operations as swiftly as possible.

Contingency planning

the process of creating an action plan, which an organisation would follow in the event that a crisis occurs. In contrast to crisis management, which is reactive, it is more proactive.

Effective crisis management depends on the following:

communication
transparency
speed
control

impacts of contingency planning

cost
time
risk
safety