Glossary of Key Terms in Crisis Management and Innovation

A set of flashcards covering key terms and their definitions related to crisis management and innovation.

Crisis Management

The management process of responding to an actual crisis facing an organization.

Crisis

Any unpredicted event that has widespread negative consequences, causing major disruptions to the normal operations of an organization.

Contingency Planning

The management process of devising and developing pre-arranged plans to deal with a crisis, in case it actually occurs.

Communication

One of the factors that affects the effectiveness of crisis management, about informing internal and external stakeholders to help them to know and understand the issue.

Control

One of the factors that affects the effectiveness of crisis management, about using a crisis management team to handle a crisis and ensure there is leadership and governance.

Speed

One of the factors that affects the effectiveness of crisis management, about making prompt decisions and actions in order to return to the business to its normal operations as soon as possible.

Transparency

One of the factors that affects the effectiveness of crisis management, about being open and honest with all stakeholders during a crisis.

Spokesperson

A representative of the organization appointed to handle the communications with key stakeholder groups should a crisis occur.

Quantifiable Risks

Measurable threats to the operations of a business so are insurable risks, e.g., the probability of fire to the premises or theft of the firm’s inventories.

Unquantifiable Risks

Immeasurable and unpredictable threats to the operations of a business, so are uninsurable risks, e.g., the COVID-19 pandemic.

Disruptive Innovation

A type of innovation that refers to any major innovation that introduces a new good or service designed to replace an existing one by radically altering the market.

Incremental Creativity

A type of innovation that refers to small but continual adjustments or developments to a product or process that already exists.

Intellectual Property (IP)

Refers to the intangible assets of a business through its creativity and capital expenditure.

Intellectual Property Protection

Also known as intellectual property rights (IPRs), it refers to the lawful and private ownership of certain creations, inventions, or works.

Patents

The exclusive right given to the registered owner to commercialize an invention, for a pre-determined length of time.

Prototype

A test (or trial) version of a product to determine whether it addresses the unmet needs of customers.

Research and Development (R&D)

The process of creating new products and processes in order to meet market needs.

Sunrise Industry

A rising industry with significant growth potential in the market.

Sunset (Declining) Industry

A declining industry with no or negative growth in the market.

Trademarks

The sole right to the owner to use a particular sign or symbol that belongs to the organization.