5.7 Flashcards
The difference between crisis management and contingency planning?
Crisis management is reactive, contingency planning is proactive
The factors that affect effective crisis management
- Transparency
- Communication
- Speed
- Control
Advantages of contingency planning
Cost
Can minimize financial damage and damage to the reputation of a business.
Time
Planning takes time but will save valuable time in a crisis.
Risk
Reduces the impact of a crisis.
Safety
Reassures staff, therefore reassuring the safety needs of employees.
Disadvantages of contingency planning
Cost and time
The opportunity cost in terms of time and finance could have been better used as crises may never happen.
Risk
Plans may be inappropriate.
Safety
Contingency plans depend on the accuracy of risk assessments which need to be reviewed on a regular basis.
