Chapter 1 Flashcards
Crisis Management requires the integration of knowledge from diverse areas such as:
Small-group decision making, media relations, environmental scanning, risk assessment, crisis communication, crisis plan development, evaluation methods, disaster sociology, and reputation management.
What are the three stages of crisis management?
Pre-crisis, crisis event, and post-crisis
Crisis
Some breakdown in a system that creates shared stress. A crisis disrupts or affects the entire organization. Crises also have the potential to create negative or undesirable outcomes.
Disaster
Events that are sudden, seriously disrupt routines of the system, require new courses of action to cope with the disruption and pose a danger to values and social goals. Disasters are large in scale and require response from multiple governmental units.
Organization Crisis
The perception of an unpredictable event that threatens important expectancies of stakeholders related to health, safety, environmental, and economic issues, and can seriously impact an organization’s performance and generate negative outcomes.
Stakeholder
A person or group that is affected by or can affect an organization.
(Management must be able to see the event from the stakeholders’ perspective to properly assess whether a crisis has occurred.)
What damage can a crisis cause?
Financial loss (lost productivity, a drop in earnings), but also injuries or deaths to stakeholders, structural or property damage (on and off site), tarnishing of a reputation, damage to a brand, and environmental harm.
Crisis Management
Represents a set of factors designed to combat crises and to lessen the actual damage inflicted. It seeks to prevent or lessen the negative outcome of a crisis and thereby protect the organization, stakeholders, and industry from harm. Crisis management has evolved from emergency preparedness and, drawing from that base, comprises a set of four interrelated factors: prevention, preparation, response, and revision.
Prevention
a.k.a. mitigation, represents the steps taken to avoid crises. Prevention is largely unseen by the public.
Preparation
Is the best-known factor in crisis management because it includes the Crisis Management Plan (CMP). Preparation also involves diagnosing crisis vulnerabilities, selecting and training a crisis management team and spokespersons, creating a crisis portfolio, and refining a crisis communication system.
Response
The application of the preparedness components to a crisis. Response is very public during an actual crisis.
Recovery
Part of the response is recovery, which denotes the organization’s attempts to the return to normal operations as soon as possible following a crisis. Business continuity is the name used to cover the efforts to restore operations to normal.
Revision
The fourth crisis factor. It involves evaluation of the organization’s response in simulated and real crises, determining what it did right and what it did wrong during its crisis management performance.
Crisis Management Framework Stages Approaches
A staged approach means that the crisis management function is divided into discrete segments that are executed in a specific order.
Fink’s Staged Approaches
Four Stages in the crisis life cycle:
1) Prodromal: Clues or hints of a potential crisis begin to emerge;
2) Crisis breakout or accurate: a triggering event occurs along with the attendant;
3) Chronic: The efforts of the crisis linger as efforts to clean up the crisis progress;
4) Resolution: there is some clear signal that the crisis is no longer a concern to stakeholders - its over