5.7 CRISIS MANAGEMENT AND CONTINGENCY PLANNING

Question 1

Crisis Management

Answer 1

The systematic steps and efforts by an organization to limit the damage from a sudden crisis.

Question 2

Crisis may be triggered by

Answer 2

• Human activity (Such as financial crisises)
• Industrial Accidents
• Natural Disasters
• Combination of three, like the COVID-19 Pandemic

Crises can be local, regional or global. Their impact can be major or not.

Question 3

Four related factors affect crisis management

Answer 3

1. Transparecncy: Stakeholders keep informed. No matter the size of the crisis, the business will need to be honest and tell the truth; linked to CSR and ethical practices.
2. Communication: Senior managers must communicate in an objective way.
3. Speed: Managers must act promptly, both in their actions and communications.
4. Control: Managers must do eveyrthing they can to prevent further damage and keep their situation under control. Minimize further impacts.

Question 4

Contingency Planning

Answer 4

An organization’s attempts to put in place procedures to deal with a crisis, anticipating it through scenario planning, modelling and simulation.

Question 5

Four important factors for contingency planning

Answer 5

1. Cost: In terms of planning and the process itself and the need to train staff. However, much less expensive than having to deal with a crisis.
2. Time: Time consuming in terms of planning and training. Example: Staff trained and retained in first aid and emergency response.
3. Risks: Risks change, review plans regularly.
4. Safety: Safety must be the priority.

Question 6

What happens if there is no contingency plan?

Answer 6

• decisions made under stress and urgency. not the best decisions
• Contingency ensures prepared staff, even if they’re not prepared for every emergency.
• Limited damage