5.7 Crisis Management & Contingency Planning HL

Question 1

crisis management

Answer 1

Implementing a plan of action when a damaging event happens
reactive

Question 2

contingency planning

Answer 2

preparing a plan of action in advance in case a crisis or emergency happens
proactive

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 info 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 - contro lthe news rather than being the news

Question 4

pros of contingency planning

Answer 4

• risks - minimizes damage and reassures stakeholders
• safety - impact on injuries/damage

Question 5

cons of contingency planning

Answer 5

cost - extra staff, training, need for updating stakeholders
time - trainings, meetings