5.7 - Crisis Management and Contingency Planning

Question 1

what is crisis management

Answer 1

the process of creating and carrying out strategies to limit the damage made to business in case of an unexpected emergency

• a reaction when the event happens

Question 2

what is contingency planning

Answer 2

preparing in advance for a range of unexpected events that might happen, and planning how these events and issues will be overcome

• plan made before the issue is presented

Question 3

what are factors that determine whether a business reacts well during a crisis

Answer 3

• communication within the business
• speed of action
• how much control the business has over what is happening
• transparency - being honest and not hiding information

Question 4

advantages/disadvantages of contingency planning

Answer 4

advantages
* reassures stakeholders
* minimises the damage in the case that what is expected happens

disadvantages
* takes money and time for something that may not even be needed
* time and resources used for meetings
* the plan must actually be useful when it is used