- Contingency/crisis planning
- Proactive to changes in the business environment
- Developing plans before crisis to reduce its risks and impacts
- Involves a crisis plan (e.g. in case of fire)
- Details roles and responsibilities, procedure, etc.
- Has to be regularly updated and tested
- e.g. Xavier emergency drills
- More quantifiable crisis = better contingency plan
- Advantages
- Reduces risk since what-ifs are accounted for
- Reduces impact of crisis or disaster
- Reassures staff; satisfies safety need (Maslow)
- Enhances motivation, communication, and productivity
- Disadvantages
- Uses up time and resources; costs
- Crisis may not happen
- Plans can be based on inaccurate or dated data
- Cannot totally prevent disasters/external shocks are inevitable
- Crisis management/disaster recovery
- Reactive to events
- Formulating the best response to a crisis to minimize impact
- Important to act fast, communicate effectively, and maintain control
- Favors radical measures and autocratic leadership
- Focus on public relations to restore image and stakeholder confidence
- Benefits of open and immediate crisis mgmt.:
- CSR – honest business
- Minimize negative reactions
- Reduce personal liability (compliance to legislation)
- Handles staff concerns and anxieties
- Minimize financial loss
Comments 1
Thanks so much for sharing your knowledge, great read for my homeschoolers and myself!