Chapter 5.7 - Crisis management and contingency planning

Question 1

Communication

Answer 1

One of the factors that affect the effectiveness of crisis management by informing internal and external stakeholders to help them know and understand the issue

Question 2

Contingency planning

Answer 2

About being proactive to changes in the business environment. It involves developing a plan before an unwanted, unpredictable, or unlikely event occurs, by using ‘what if?’ questions to identify probable threats

Question 3

Control

Answer 3

Is one of the factors that affect the effectiveness of crisis management, by using a crisis management team to handle a crisis and to ensure there is leadership and governance

Question 4

Crisis

Answer 4

A situation or disequilibrium or instability that results in major problems for a business

Question 5

Crisis management

Answer 5

Refers to the response of an organization to a crisis situation. It is about being reactive to events that can cause serious problems to a business

Question 6

Quantifiable risks (insurable risks)

Answer 6

Probable and financially measurable threats to a business, such as fire damage

Question 7

Speed

Answer 7

One of the factors that affect the effectiveness of crisis management, by making prompt decisions and actions in order to return to normal operations as soon as possible

Question 8

Transparency

Answer 8

One of the factors that affect the effectiveness of crisis management by being open and honest with all stakeholders during a crisis

Question 9

Unquantifiable risks (uninsurable risks)

Answer 9

Threats to a business that are impossible or prohibitively expensive to examine and measure