Unit 5, Section 7: Crisis Management & Contingency Planning (HL Only)

Communicaiton

The process of conveying a message to others that requires six elements: a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.

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.

contingency planning

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

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.

crisis

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

crisis management

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

Quantifiable risks

These are 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 (stocks).

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.

spokesperson

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

Transparency

One of the factors that affects the effectiveness of crisis management, about being open and honest with all stakeholders during a crisis. It is about disclosing the truth, such as the scale or severity of the crisis.

Unquantifiable risks

These are immeasurable and unpredictable threats to the operations of a business, so are uninsurable risks