Lesson 1

Question 1

occurs when an unexpected problem puts the stability of a company or organization at risk. These dilemmas can either originate internally or they can be brought on by external influences.

Answer 1

Business Crisis

Question 2

occurs when a business loses value in its assets and the company can’t afford to pay off its debt. Typically, this is caused by a significant drop in demand for the product or service.

Answer 2

Financial Crisis

Question 3

occur when an employee or individual who’s associated with the company is involved in unethical or illegal misconduct.

Answer 3

Personnel Crisis

Question 4

are situations where the company has significantly wronged its consumers or employees. Rather than creating mutually beneficial relationships, these businesses use their customers as a means of benefiting the company, or abuse their employees to “save face.”

Answer 4

Organizational Crises

Question 5

This type of crisis occurs when a company knowingly lies about public-facing product information or tampers with public-facing data.

Answer 5

Crisis of Deception

Question 6

This type of crisis is a result of management willingly and knowingly engaging in illegal activities.

Answer 6

Crisis of Management Misconduct

Question 7

This type of crisis results when senior leadership emphasizes short-term financial gains over social responsibility and neglects the interests of stakeholders such as customers and employees

Answer 7

Crisis of Skewed Management Values

Question 8

In today’s tech-driven age, businesses heavily rely on technology to perform day-to-day functions. So, when that technology crashes, they have a lot more to worry about than a few missing emails.

Answer 8

Technological Crisis

Question 9

If an earthquake destroys your office, you might call that a crisis. While it may be rare, natural disasters like hurricanes, earthquakes, and tornados can make a significant impact on your business. If your company is located in an area that’s exposed to extreme weather, you’ll need to prepare an emergency response in the unfortunate event that you’re affected.

Answer 9

Natural Crisis

Question 10

can arise in any number of ways. Your employees may fight. A disagreement may spiral out of control amongst senior leadership. Or, public discontent with your firm can result in a public outcry.

Answer 10

Confrontation Crisis

Question 11

occurs when a current or former employee commits violence against other employees. Unfortunately, these crises can come on suddenly, and it could be difficult to act before it escalates further or becomes fatal.

Answer 11

Workplace Violence Crisis

Question 12

occurs when a firm’s opponents use criminal or illegal means to destabilize a firm, harm its reputation, extort it, or even destroy it. Examples include tampering with a company’s product to create large-scale harm, using a company’s products in illegal or unaccepted ways, or hacking into a company’s system to steal encrypted data.

Answer 12

Crisis of Malevolence