5.7 Crisis management and contingency planning

Question 1

Contingency planning

Answer 1

Preparing the immediate steps to be taken by an organisation in the event of a crisis or emergency.

Question 2

Crisis management

Answer 2

Steps taken by an organisation to limit the damage from a significant, damaging event by handling, containing and resolving it.

Question 3

Factors that affect effective crisis management:

Answer 3

• Transparency
• Communication
• Speed
• Control

Question 4

Advantages and disadvantages of contingency planning:

Answer 4

• Cost
• Time
• Risks
• Safety

Question 5

Cost (advantage of contingency planning)

Answer 5

Can help to minimise negative reactions and hence the costs of crises.

Question 6

Time (advantage of contingency planning)

Answer 6

Planning takes time, but can save time in the event of a crisis.

Question 7

Risks (advantage of contingency planning)

Answer 7

Helps to reduce risks as most risks or eventualities can be accounted for.

Question 8

Safety (advantage of contingency planning)

Answer 8

Immediate actions, such as communications with the organization’s personnel, can help to alleviate or minimise the concerns of staff and meet their security needs.

Question 9

Cost (disadvantage of contingency planning)

Answer 9

Crises may never happen and therefore the time and money invested into contingency planning could have been better used elsewhere.

Question 10

Time (disadvantage of contingency planning)

Answer 10

Contingency planning uses up valuable management time and resources, thereby increasing costs.

Question 11

Risks (disadvantage of contingency planning)

Answer 11

If plans are based on outdated or inaccurate data, then inappropriate actions may be taken if and when a crisis occurs.