Crisis and contingency planning Flashcards
What is the primary aim of crisis management?
To return to normal business operations as swiftly as possible.
What is contingency planning?
The process of creating an action plan for unexpected events.
How does crisis management differ from contingency planning?
Crisis management is reactive, while contingency planning is proactive.
Name three examples of crises.
- Cyber attack
- Product recall due to defects
- Natural disaster
What are the key focus areas of effective crisis management?
- Communication
- Transparency
- Speed
- Control
Why is transparency important in crisis management?
It helps maintain sympathy and trust from stakeholders.
What can happen if a business tries to suppress information during a crisis?
Trust may be damaged beyond repair.
What role does speed play in crisis management?
It helps return to normal operations as quickly as possible.
What is one benefit of having a well-defined organisational structure during a crisis?
It clarifies the chain of command and responsibilities.
What does effective contingency planning help minimize during a crisis?
The cost of a crisis.
What is a potential downside of contingency planning?
It takes time and resources.
What is a key consideration regarding the time involved in creating contingency plans?
Time spent now could increase speed later.
How can effective contingency plans impact safety?
They help keep everyone safe during emergencies.
What must contingency plans take into account to be useful?
The unpredictability of human reactions during a crisis.
