5.7 - Crisis Management and Contingency Planning (HL - Unit 4)

Question 1

Crisis Management

Answer 1

Implementing a plan of action when a damaging event happens

Question 2

Contingency Planning

Answer 2

• Preparing a plan of action in advance in case a crisis or emergency happens
• When a crisis occurs, use the contingency plan

Question 3

What are the factors that determine whether a business reacts well during a crisis

Answer 3

Transparency:

• Being honest and not hiding important information

Communication:

• Being proactive and sharing information with relevant stakeholders

Speed:

• How quickly you make decisions and communicate
• Impact of social media

Control:

• How much control you have over what’s happening
• Control the news rather than being the news

Question 4

Advantages of Contingency Planning

Answer 4

• Minimizes damage and reassures stakeholders
• Less impact on injuries/damage

Question 5

Disadvantages of Contingency Planning

Answer 5

• Additional costs for extra staff, training, need for updating stakeholders
• Time needed on training, meetings