Crisis management is defined as strategic steps taken in response to an emergency or difficult situation. From a business perspective,these planned actions are important to avert a negative circumstance’s threats to the operations and its consequences to the bottom line. Crisis management is designed to prevent the serious aftermaths of a crisis to the business,its image,and its stakeholders.
Crisis management involves different tasks that have to be carried out before,during,and after a crisis. It encompasses strategic planning,managing,and capping potential damages from unfortunate situations. The process involves anticipating potential problems,creating ways to control and limit negative effects,and executing these strategies when such crisis arises.
Crises may happen to any business,regardless of its size and age. What makes these situations hard-hitting is they come with some element of surprise,thus the need to become prepared. Quick decision-making is highly important in these scenarios,but when a plan is already set in place,it is way easier to tackle a crisis.
Crisis management agencies in Hong Kong point out how the process overlaps with risk management. Both practices touch on what could go wrong and how to quickly respond to it. But if you look at it more closely,risk management’s primary focus is how to ward off a crisis while crisis management centers on the best way to react and address it.
Elements of Crisis Management
Prevent,plan,practice,and perform â these are the four Ps of crisis management. These terms pertain to the steps businesses should take in relation to the entire crisis management process. To summarize the four Ps: Prevent pertains to ways to minimize potential threats and hazards; Plan simply means the creation of a plan or organized protocols in response to such situations; Practice means rehearsing the plan of actions; and Perform means to carry out these actions as effectively as possible when the time requires them.
Crisis management is very important especially in times of economic instability and uncertainties. Consult with a reputable crisis management agency for guidance on this matter.