5.7 Crisis management and contingency planning

What is crisis management?

How a business handles an unexpected event that is highly disruptive to its operations, for example a plane crash or corona

What is contingency planning?

A documented plan outlining the procedures, processes and policies to minimize damage by a crisis, such as a plan for a school shooting

What are the key factors affecting crisis management?

Transparency - being open and honest with stakeholders (keeping public updated on plane crash)

Communication - effective communication between internal and external stakeholders

Speed - decisive actions and not wasting time

Control - keeping control to prevent matter from worsening

What are aspects come with contingency planning?

Costs, time, risks, safety

How is planning the costs good or bad?

It helps to minimize the chances of making expensive mistakes and financial losses, but training staff and organizing for a crisis is costly

How is planning the time good or bad?

It helps to make prompt decisions and act quickly in the time of a crisis, but it is time-consuming to plan for everything and what steps will be carried out

How is planning for the risks good or bad?

It can help a business avoid risks during a crisis, such as financial losses or deaths, but it cannot avoid all risks

How is planning for safety good or bad?

It lets the stakeholders know how to act in safe ways which protects more people from getting in danger, but safety and precaution methods can be costly