As per the definition, crisis management is the process by which a business, or any other organisation, deals with a specific emergency. However, the notion goes a bit deeper. Crisis management, much like the human body, deploys senses to assess the crisis holistically, and then adopts a multi-pronged approach. Companies today tread a fine line between survival and disaster; and crisis is an inadvertent part of the business scenario. However, it is a task to avoid the bad from getting worse.
Since word travels far and wide, it is essential to plug all holes and a crisis should be reprimanded via all social and media platforms and if need be, face-to-face meetings as well. Disaster can also strike in terms of financial expulsions, technical breakdown, product flaws or the workforce. Crisis management involves an in-depth understanding of the problem at hand and the necessary tools to resolve it.
Corporate management is the technique of running an organisation based on its operative, regulatory and financial pathways. As per businessdictionary.com, business tasks often performed by corporate management might include strategic planning, as well as managing company resources and applying them towards attaining the company's objectives. Today, corporate management is achievable via a Corporate Management System (CMS) which allows organisations to respond to market changes in real time.
It is a rather simple equation — the better the crisis management, the smoother the path for corporate management. Upholding the brand value or rectifying it to customers and other stakeholders’ expectations creates a positive image for the organisation. This positive image fuels the tactics that can be leveraged to grow the organisation in a desirable direction.
The crux lies in understanding the need for crisis management and what measures can be incorporated to align with the company's existing functionality. The gap between the two can prevail for the following reasons:
Since catastrophe is an uninvited guest (if we can call it that), it is better to keep in handy a couple of strategies that can either avert the impending disaster or at least soften the blow.
Prevent heavy financial losses: For instance, if the server of a large company is down, even if for a few hours, it can mean a colossal losses. Crisis management planning can, if not foresee, arm the organisation better in case of an impending disaster which can save a considerable amount of resources.
Legal Protection: Crisis can be in the form of litigations and lawsuits. Having a robust crisis management plan can seal the holes for any legal exposure and save the organisation from going into trial or expending huge costs in fines or penalties.
Avoids Reputational Damage: This cannot be emphasised upon enough. Reputation can make or break a company, and a robust crisis management plan can steel the reputation against upcoming attacks. There have been way too many instances in the news where hi-profiled CEOs and founders were questioned in public about their practices and a lack of proper explanation for the same.
The Secret of crisis management is not good v. bad; it’s preventing the bad from getting worse.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)