Midterm Flashcards
What other terms can “crisis” be interchanged with? (4)
Disaster
Business Disruption
Catastrophe
Emergency Contingency
Blanchard identified no fewer than how many different definitions of the term “crisis”
24
“A crisis is the ________ of and unpredictable event that threatens important expectancies of _________ and can seriously impact an organization’s ________ and generate _________ __________. “
-Timothy Coombs
Perception
Stakeholders
Performance
Negative Outcomes
“An organizational crisis is a ________ , _______ event that _______ the viability of the ________ and is characterized by ________ __ ______ , _________, and _______ __ _________ , as well as a belief that ________ _____ __ _____ ______.”
- Pearson and Clair
Low-probability
High Impact
Threatens
Organization
Ambiguity of cause
Effect
Means of resolution
Decisions must be made swiftly
What are the 5 Key points in the definition of a Crisis?
Low Probability
High Damage
Ambiguity of Cause
Swift Decision-making
Perception
What are the three boundaries that Crisis cross?
Geographical
Functional
Time
What is a geographical Boundary?
Cities have the potential to impact an organization beyond traditional and geographical lines.
What is a functional boundary and what does it mean?
It threatens multiple life-sustaining systems and infrastructures.
It means that many organizations/industries may have a role to play in managing a crisis. This has implications for coordinating response and recovery.
What is a time boundary?
Crises do not necessarily have a definite beginning or end. Their origins can be deep and the impacts they have can go on for many years.
What does the transboundary nature of crises involve?
It involves an interconnected (system) of critical infrastructure which suggests that transboundary crises are more complex and consequence potential is greater.
What are the four distinct phases of the life cycle of a crisis?
Preconditions
Trigger Event
Crisis
Post Crisis
What is the Preconditions phase?
A set of smaller events that typically occur prior to a crisis.
During the preconditions phase, there are Warning Signs. What are some reactions of organizations to those Warning Signs that makes them prone to crisis?
They are unaware
They do not believe they are serious threats
They may be in denial
What is the Trigger Event Phase?
The point in which the crisis escalates and upsets the normal equilibrium of the organization
The organization functions normally until with preconditions “brewing beneath the surface” the trigger event occurs - sets the crisis in motion, and in doing so renders the crisis noticeable to stakeholders.
What is the Crisis Phase?
The escalation produces the greatest damage to the organization and its stakeholders.
Damage can be extensive and it can have major effect on business or organization.
What is the Post crisis Phase?
When the acute phase of the crisis is over, there should be reflection on the event for lessons learned
Aim should be on preventing a similar occurrence
What has been cited by researchers as some of the factors that cause organizations to be crisis prone? (3)
Organizational mismanagement (including poor crisis leadership)
Organizational culture does not support crisis preparation
Is NOT Crisis Prepared
What are some reasons an Organization is NOT Crisis prepared?
View crisis as random or unlucky
Does not adopt technical and behavioral actions to prepare for and manage their way through crisis
Does not see the Organization as part of a wider system of community and stakeholders
Does not establish contingency plans
Does not develop Organizational capability
Does not understand the nature of risk
Does not consider preventative measures to minimize risk
Does not plan to reduce the impacts of unavoidable risk
Does not organize and train
How does the Canadian Standards Association define Crisis Management?
“The ability of an organization to manage incidents that have the potential to cause significant security, financial, or reputational impacts.”
What can “Crisis Management” be taken to refer to?
Either managing a crisis after it has arisen and/or managing in such a way that a crisis does not arise in the first place
Since the start of the 1980s, the field of crisis management has been characterized by two main trends: ________ in crisis management and the _______ __ ________ _________ during a crisis.
Planning
Analysis of Organizational Contingencies
** What does the private sector do for Crisis Management
Ensuring corporate survivability
Ensuring economic viability
What are the six other characteristics of a Crisis?
Impacts
Response
Starting Point
Risk to Life, Property
Sudden or Smoldering
Uncertainty
To understand the origins of a crisis is to see their genesis in one of the three domains, what are they?
Natural
Technological
Human-Induced/Caused
Practitioners and Scholars view the external environment in terms of general forces that originate from four areas, what are they?
(PEST)
Political-legal
Economic
Social
Technological
In what ways can the internet facilitate crisis?
Permits individuals to spread negative information about an organization
Rapidly and broadly
Little to no associated expense in doing so
Forums, YouTube, Blogs, or even entire websites
Lack of oversight (internet) which can produce unfiltered expressions (in real time).
Lack of oversight (internet) which can produce unfiltered expressions (in real time) of what?
Opinions
Whims
Anger
How can the internet trigger a crisis?
Website malfunctions - this is especially devastating for business that rely exclusively on the internet
What are the top three reasons that the ICM 2016 Report has identified for a Crisis?
Mismanagement
Discrimination
White Collar Crime
What are the PRIMARY purposes of the Crisis Management Team (CMT)?
PROVIDE pre crisis support for business contingency planning.
DECIDE when to declare a disaster (crisis) requiring partial or total plan activation
MAKE strategic decisions during and in the aftermath of a crisis.
PROMOTE organizational learning and continuous improvement
What are the five goals/objectives of the Crisis Management Team (CMT)?
IDENTIFY the crisis threats that an organization faces
DEVELOP a crisis management plan
LEAD training in the area of crisis management
ACTIVELY manage crisis when one happens
LEADS post-crisis evaluation so learning can occur
What is the composition of Team Membership?
Different sources recommend slightly different compositions for CMTs
The nature of the Industry and the nature of the crisis may influence CMT make-up
Crisis Management Teams should represent the major functional areas of the organization
What are the six CMT Member characteristics that Crandall, Parnell, & Spillan (2014) recommend?
Ability to work in a team
Ability to think under pressure
Ability to tolerate ambiguity
Good listening skills
Good verbal skills
Good thinking skills.
What is the limit of members that a CMT should have?
The CMT should be limited in size to 10 or fewer members to facilitate team work and open discussions, and to allow each member to express his/her/their ideas and concerns while still focusing on the pre crisis concerns, crisis response, and the post crisis situation.
What is essential in order for the CMT to effectively fulfil its pre-crisis, crisis, and post crisis responsibilities?
The proper physical environment and supporting equipment and infrastructure that comprise an EOC
Is the establishment of an EOC something that should be thrown together in the midst of a crisis?
No
What are strategic plans?
One of the key documents in organizations to help provide guidance to managers toward agreed objectives
It also helps employees and departments within the organization move purposefully and cohesively in the work they do and helps them relate to a broader vision leading to staff motivation
It also helps senior managers make difficult decisions at times of crisis.
It may be difficult to distinguish between ______ and ______.
Strategic challenge, organizational crisis
Because of the link and difficulty distinguishing between strategic challenge and organizational crisis_______ Should be a part of the strategic management process.
Crisis Management
What are considerations for a Crisis Management Program?
Obtaining and securing organizational support
Risk Management (including identification and assessment activities)
Planning
Awareness, Training, Exercising
Response capacity and capability
Crisis Communication
Organizational learning
Crandall, Parnell, & Spillan (2014) suggest that a strategic approach to risk management can be summarized in five steps, what are they?
External Analysis
Internal Analysis
Strategy Formulation
Strategy Execution
Strategy Control
In the planning stage of a Strategic Approach to Crisis Management, Crandall, Parnell, & Spillan (2014) recommend that the plan consists of what components?
Cover Page
Table of Contents
CMT member listing
Responsibilities
CMT Activation procedures
Command Center Locations
Response plans for specific Crisis Situations
What are the three key organizational characteristics that influence environmental uncertainty?
Whether or no the environment is simple or complex
Whether or not the environment is stable or unstable
The quality of information that is available to decision makers
What is Risk Management and what does it impact?
It is the foundation of a comprehensive crisis management program
It impacts each function in the crisis management framework
What are three basic ways risks can be managed?
Ignore, Avoid, or Manage
What is Business Area Analysis?
The examination and understanding of the business functions, sub-functions and processes and the interdependencies amongst them
Business area analysis requires consideration of what three questions?
What are our organizational functions?
What are our organizational sub-functions and processes?
Which are critical to the continuity of our business?
Business Impact analysis requires the consideration of what two questions?
How do potential hazard’s impact business functions, sub functions and processes?
What controls are currently in place?
Why is the HRM process never actually finished?
It is subject to re-analysis and revision when changes occur in the internal and external environments
Continuous monitoring and review of findings from all steps should be conducted to do what?
Keep the overall process relevant and on track with the crisis management program
What will test the Crisis Management program, and both the positive and negative observations related to any institutions performance should be noted and organized?
Drills, Exercises and actual events
