5.7 crisis management and contingency planning

communication

one of the factors that affect the effectiveness of crisis management, by informing internal and external stakeholders to help them to know and understand the issue

contingency planning

about being proactive to changes in the business environment, involves developing a plan before an unwated or unlikely event occurs by using ‘what if?’ questions to identify all probable threats

control

one of the factors that affect the effectiveness of crisis management, by using a crisis management (critical incident) team to handle a crisis and ensure there is leadership and governance

crisis

a situation of instability that results in major problems for a business, usually unexpected and often unpredictable: [ex. natural disasters, accidents and computer failure]

crisis management (disaster recover)

about being reactive to events and disasters that can cause serious disruptions and harm to a business: [ex. taking action as and when a crisis happens]

quantifiable risks (insurable risks)

probable and financially measurable threats to a business (fire damage)

speed

one of the factors that affect the effectiveness of crisis management, by making prompt decisions and actions in order to return to normal operations as soon as possible

transparency

one of the factors that affect the effectiveness of crisis management, by being open and honest with all stakeholders during a crisis, about disclosing the truth (scale or severity of the crisis)

unquantifiable risks (uninsurable risks)

threats to a business that are impossible or prohibitively expensive to examine and measure