COMMUNITY DEVELOPMENT (CD)

LEVEL 5 DIPLOMA

Humanitarian Aid and Crisis Management

By
Wilson Chawaza-Phiri
0881548334/[email protected]
 Preamble
Subject Aim
o This subject aims to help learners to
understand humanitarian aid and crisis
management principles, objectives and
funding.
o It enables learners to understand the role of
government organisations, charities and
communities in their responses to a crisis.
o It also focuses on the relationships between
humanitarian aid, crisis management and risk
 Preamble
Subject Overview
o This subject is for those considering careers in
community development (CD) and related
areas.
o It gives learners the opportunity to
investigate the principles and role of
humanitarian aid and crisis management
principles, objectives and funding.
o It also gives learners the opportunity to
explore the role of government organisations,
 Preamble
o Additionally, learners will consider the
relationship between humanitarian aid and
crisis management and the importance of risk
assessment for crisis management.
 Preamble
Learning Outcomes
After successfully completing this unit, the
learner will:
1. Understand the principles and role of
humanitarian aid
2. Understand how humanitarian aid is funded
3. Understand the principles of crisis
management
4. Understand relationships between
humanitarian aid, crisis management and risk
 Subject Deliverables
Learning Outcome 1: Understand the principles
and role of humanitarian aid
1. 1. Role of humanitarian aid
a. Outline and importance of key principles and
objectives for humanitarian aid: primary
objective of humanitarian aid is to save lives,
alleviate suffering, and maintain human
dignity
 Learning Outcome 1.2
1. 2. Humanitarian aid versus development aid:
a. Role and objectives of development aid: seeks
to address the underlying socioeconomic
factors which may have led to a crisis or
emergency
b. Different forms of humanitarian aid
c. Implications for countries receiving
humanitarian aid compared to implications of
those receiving development aid
 1. 1. Role of humanitarian aid
Definition of Humanitarian aid:

“It is any kind of help or assistance given to

people in crisis or emergency in order to save
their lives and property, alleviate suffering
and maintain human dignity”
“It is any kind of response or intervention
aiming at assisting people facing crises that
threatens to harm their lives and property”
 Examples of Crises and Emergencies
for Humanitarian aid
Most crises and emergencies requiring
humanitarian response or intervention
include:
o Natural disasters – earthquakes, tsunami,
floods, famine,
o Technological crises – road accidents, airplane
crush, fire crises, building collapsing, etc
o Man made crises – Terrorists attack, civil
wars, world wars, - also some technological
crises are done due to human error etc
 Examples of Humanitarian Aid
Humanitarian aid include:
a. Material Support – food, shelter, clothing, etc
b. Financial Assistance
c. Logistical Support – moving people and their
property to safe places
d. Psychological and emotional support –
counseling
e. Medical Support - drugs
 Rationale, Role, Reasons, Objectives and
importance of Humanitarian Aid

Three key reasons, rationale, objectives and

importance of humanitarian aid:
o Save peoples lives and their property
o Alleviate human suffering
o Maintain human dignity
 Principles of Humanitarian aid
Key principles for people providing humanitarian
aid include:
o The principle of humanity – the help should
promote human dignity, realizing that all
human beings deserve equal worthiness and
respect regardless the situation they are in.
o The principle of neutrality – especially in
armed conflict, without taking sides,
humanitarian aid should not become a tool to
fuel conflicts
 Principles of Humanitarian aid
o The principle of Impartiality – By promoting
equal opportunities and treatment, being
partial, treat everybody equally regardless of
their social status
o The principle of transparency and
accountability – being open and accountable
to the clients and the donors and other
stakeholders in every dealings
o The principle of confidentiality – especially
when helping people whose information or
 Principles of Humanitarian aid

o Respecting people’s culture, religion, family

and political rights
o The principle of coordination – Especially
when many organizations are supporting the
same group
 1.2. Humanitarian Aid vs
Development Aid

• 2. Humanitarian aid versus development aid

• a. Role and objectives of development aid:
seeks to address the underlying
socioeconomic factors which may have led to
a crisis or emergency
• b. Different forms of humanitarian aid
• c. Implications for countries receiving
humanitarian aid compared to implications of
those receiving development aid
 What is Development Aid???
o Development aid (also known as
development assistance, technical assistance,
international aid, overseas aid, official
development assistance (ODA), or foreign aid)
is financial aid given by governments and
other agencies to support the economic,
environmental, social, and political
development of developing countries.
 Development Aid
o Money that rich countries give to poorer
ones to help them develop (= increase their
industry and economic activity and get richer
o It is any kind of aid expended in a manner
that is anticipated to promote development,
whether achieved through economic growth
or other means.
o Unless the outside world increases its
development aid the cycle of crisis and
poverty will not be broken
 While Humanitarian Aid is….
Is any kind of help or assistance given to people
in crisis or emergency in order to save their
lives and property, alleviate suffering and
maintain human dignity
“It is any kind of response or intervention
aiming at assisting people facing crises that
threatens to harm their lives and property”
 How Development Aid is Funded
o Aid may be bilateral: given from one country
directly to another;
o or it may be multilateral: given by the donor
country to an international organisation such
as the World Bank or the United Nations
Agencies (UNDP, UNICEF, UNAIDS, etc.) which
then distributes it among the developing
countries.
o The proportion is currently about 70%
bilateral 30% multilateral.
 Sources of Development Aid
o About 80-85% of developmental aid comes
from government sources as official
development assistance (ODA).
o The remaining 15-20% comes from private
organisations such as "non-governmental
organisations" (NGOs), foundations and other
development charities (e.g., Oxfam).
o In addition, remittances received from
migrants working or living in diaspora form a
significant amount of international transfer.
 Role and Objectives of Development
Aid
o Seeks to address the underlying
socioeconomic factors which may have led to
a crisis or emergency
o Helps developing countries build self-resilient
economies
o Help developing countries build sustainable
economies and livelihoods
o Promote long – run economic growth
o To alleviate poverty
 Aid Conditionality
o In political economy and international relations,
conditionality is the use of conditions attached to
the provision of benefits such as a loan, debt relief or
bilateral aid.
o Conditionality is most often associated with aid
money.
o International organizations, such as the International
Monetary Fund (IMF) and World Bank, or individual
countries can use conditionality when lending
money to another country.
o Also known as “Aid Ties”
 Popular aid ties include:
o Political stability
o Rule of law
o Respect of human rights
o Good governance
o Respect of minority rights
o Democratic governance
o Fiscal discipline
o Anti-corruption practices
o Using aid for designed purposes
 Types of Development Aid
Grants – Non repayable
o Conditions may be attached in most cases
Loan – Repayable usually long term debts,
o Also conditions may be attached
 Development Aid vs Humanitarian Aid
Humanitarian Aid Development Aid
Short Term Long - Term

Delivered in Disaster/crisis Delivered in Developing

Zone Countries

Respond to an incident or Respond to systematic

event problems

Focused on saving lives Focused on economic,

social and political
 Implications for countries
receiving humanitarian aid
o Since development aid aims at addressing
socio-economic factors that can cause
disasters or emergences such as poverty,
climate change, disease outbreaks, political
conflicts, civil wars etc
o Therefore, countries receiving development
aid build capacity to tackle the root cause
factors of disasters or emergences, hence
minimizes chances of crises and chances of
humanitarian assistance
 Dev Aid vs Human Aid
o Development aid helps countries develop
resilience to disasters and emergences, hence
having capacity to solve their own challenges
o Development aid promotes long run and
sustainable socio-economic growth, hence
become self sufficiency and reduce disaster
and emergency vulnerabilities
o On the long run, these countries will become
financially independent, hence address issues
themselves
 Dev Aid vs Human Aid
o On the hand countries receiving humanitarian
aid may continuously face similar challenges,
repeatedly because humanitarian aid only
addresses short term consequences
o Humanitarian aid does not break poverty and
crises cycle, rather solves short – term
problems
o Most of humanitarian aid focuses on saving
lives, and alleviating the suffering of people in
disasters or emergences, but does not address
 Learning Outcome 2:

o Understand How Humanitarian Aid is Funded

 2.1. Principles of Funding
Humanitarian Aid

a. Who funds humanitarian aid

b. Methods of funding
c. Reasons for funding
WHO FUNDS HUMANITARIAN AID
Humanitarian can be funded by:
o Donations from individuals of goodwill
o Public corporations, parastatals, statutory
corporations
o Governments , both national and foreign
governments
o Charity Organizations
WHO FUNDS HUMANITARIAN AID
o Non Governmental Organizations (NGOs)
both local and international NGOs such as
The Red Cross International, World Relief,
World Vision International etc
o Religious Organizations,
o The Private Sector – these profit oriented
companies
o International Organizations such UN and its
Agencies. The World Bank etc
 Methods of Funding Humanitarian
Aid
a. Funding sourced locally (Local Funding):
o Funding sourced from within a nation, can
either be directly delivered to the victims, or
it can be channeled through a government
department responsible for disaster and
relief or
o Any other accredited non governmental
organization that is responsible for managing
funding for each crisis or emergency such as
the Redcross International
Bilateral vs Multilateral Funding
o Humanitarian Aid may be bilateral: given
from one country directly to another; which
then forward it to the victims
o or it may be multilateral: given by the
donor country to an international
organisation such as the World Bank or the
United Nations Agencies (UNDP, UNICEF,
UNAIDS, etc.) which forward it to the
affected country or in certain cases directly
to the victims, although this is rare.
 Reasons for Funding Humanitarian
Aid

o Save lives and propserty

o Alleviate suffering
o Maintain human dignity
o It is a humanitarian obligation to support
others in crises
o To promote global peace especially the aid
that goes to war conflicts
o It is also part of international agreement that
1. 2. Risks and benefits of organising funding for
humanitarian aid
a. Risks of organising funding for humanitarian aid at
international, regional and local levels :
o Difficulties in reaching potential donors due to issues such
as their identification, bureaucracy and donor fatigue etc
o Dealing with bureaucracy - a chain or hierarchy of
authority involved in making a decision – this may delay
the fundraising initiatives
o Problems with coordinating campaigns and organising
volunteers (especially large-scale, cross-border
campaigns),
o Lack of political will by national governments especially to
officially accept that they are in crisis eg political disputes,
famine, civil wars etc
Risks of Organizing Humanitarian Aid
o Dealing with donor fatigue (people failing to donate
due to pressure to donate, constant appeals for
donation, overstretched budgets, frustration with
mismanaged charities/donation campaigns) – these
again suffocates funding initiatives
o Costs of co-ordinating large-scale campaigns
(particularly administration costs like adverts)
o Logistical support in delivering aid becomes a
challenge especially in war zone areas, and
unreached places.
Benefits of Organizing Humanitarian
Aid
Benefits include:
o Raising awareness – potential donors will only respond if
they are aware of the situation
o Effective means of securing generous donations especially
if there is a global wide campaign-
o Funding is increasingly international, making it much
faster requires an effective awareness - especially if
government declares state of national disasters,
o More responsive especially if there is a an appeal from
national governments by declaring the state of national
disasters ,
o More effective in coping with major emergencies affecting
large numbers of people
o Therefore, there is a need to embark on a serious
campaign when there is crises or emergencies
o Use a number of communication methods such as
media – television, newspapers, social media etc;
speaking to potential donors; writing appeal letters;
press conferences etc
 AGENDA 21
• Agenda 21 is a non-binding, voluntarily
implemented action plan of the United
Nations with regard to sustainable
development.
• It is a product of the Earth Summit (UN
Conference on Environment and
Development) held in Rio de Janeiro, Brazil, in
1992
 AGENDA 21
• In order to meet the challenges of
environment and development, States have
decided to establish a
new global partnership. This partnership
commits all States to engage in a continuous
and constructive
dialogue, inspired by the need to achieve a
more efficient and equitable world economy,
keeping in
 AGENDA 21
• view the increasing interdependence of the
community of nations and that sustainable
development
should become a priority item on the agenda
of the international community. It is
recognized that, for
the success of this new partnership, it is
important to overcome confrontation and to
foster a climate of
genuine cooperation and solidarity.
 AGENDA 21
• It is equally important to strengthen national
and international
policies and multinational cooperation to
adapt to the new realities.
 AGENDA 21
o Agenda 21 addresses the pressing problems of today
and also aims at preparing the world for the
challenges of the next century.
o It reflects a global consensus and political
commitment at the highest
level on development and environment cooperation.
o Its successful implementation is first and foremost
the responsibility of Governments.
 AGENDA 21
o National strategies, plans, policies and processes are
crucial in achieving this.
o International cooperation should support and
supplement such national efforts.
o In this context, the United Nations system has a key
role to play.
o Other international, regional and subregional
organizations are also called upon to contribute to
this effort.
 AGENDA 21
• The broadest public participation and the
active involvement of the non-governmental
organizations and other groups should also be
encouraged.

•
 Learning Outcome 2

o Bilateral Aid
o Multilateral Aid
o Emergency Aid
o Non Governmental Organizations
o Participatory Development (PD)
 Participatory Development (PD)
o Participatory development (PD) seeks to engage
local populations in development projects.
o Participatory development has taken a variety of
forms since it emerged in the 1970s, when it was
introduced as an important part of the "basic needs
approach" to development.
o Most manifestations of PD seek “to give the poor a
part in initiatives designed for their benefit” in the
hopes that development projects will be more
sustainable and successful if local populations are
engaged in the development process.
 Participatory Development (PD)
o PD has become an increasingly accepted method of
development practice and is employed by a variety
of organizations. It is often presented as an
alternative to mainstream “top-down” development.
o There is some question about the proper definition
of PD as it varies depending on the perspective
applied.
o Two perspectives that can define PD are the "Social
Movement Perspective" and the "Institutional
Perspective":
The Social Movement Perspectives
o You cannot "buy" development; beneficiary
communities must own the projects - B.Hoeper
o The "Social Movement Perspective" defines
participation as the mobilization of people to
eliminate unjust hierarchies of knowledge, power,
and economic distribution.
o This perspective identifies the goal of participation as
an empowering process for people to handle
challenges and influence the direction of their own
lives.
The Social Movement Perspectives
o Empowerment participation is when primary
stakeholders are capable and willing to initiate
the process and take part in the analysis.
o This leads to joint decision making about what
should be achieved and how.
o While outsiders are equal partners in the
development effort, the primary stakeholders
are primus inter pares, i.e., they are equal
partners with a significant say in decisions
concerning their lives.
The Social Movement Perspectives
o Dialogue identifies and analyzes critical issues,
and an exchange of knowledge and
experiences leads to solutions.
o Ownership and control of the process rest in
the hands of the primary stakeholders.
 The Institutional Perspective
o The "Institutional Perspective" defines
participation as the reach and inclusion of
inputs by relevant groups in the design and
implementation of a development project.
o The “Institutional Perspective” uses the inputs
and opinions of relevant groups, or
stakeholders in a community, as a tool to
achieve a pre-established goal defined by
someone external to the community involved.
 The Institutional Perspective
o The development project, initiated by an
activist external to the community involved, is
a process by which problem issues in a
community can be divided into stages, and
this division facilitates assessment of when
and to what degree a participatory approach
is relevant.
 The Institutional Perspective
o From an institutional perspective, there are
four key stages of a development project:
Research Stage, Design Stage, Implementation
Stage, Evaluation Stage.
o The institutional perspective can also be
referred to as a "Project-Based Perspective".
 Forms of participatory development from an
institutional perspective

1. Passive participation is the least participatory

of the four approaches.
• Primary stakeholders of a project participate
by being informed about what is going to
happen or has already happened.
• People’s feedback is minimal or non- existent,
and their participation is assessed through
methods like head counting and contribution
to the discussion (sometimes referred to as
participation by information).
 Forms of participatory
development
• 2. Participation by consultation is an extractive
process, whereby stakeholders provide answers to
questions posed by outside researchers or experts.
• Input is not limited to meetings but can be provided
at different points in time.
• In the final analysis, however, this consultative
process keeps all the decision- making power in the
hands of external professionals who are under no
obligation to incorporate stakeholders’ input.
 Forms of participatory
development
3. Participation by collaboration forms groups of
primary stakeholders to participate in the discussion
and analysis of predetermined objectives set by the
project.
• This level of participation does not usually result in
dramatic changes in what should be accomplished,
which is often already determined.
• It does, however, require an active involvement in
the decision-making process about how to achieve it.
 Forms of participatory
development
• This incorporates a component of horizontal
communication and capacity building among
all stakeholders—a joint collaborative effort.
Even if initially dependent on outside
facilitators and experts, with time
collaborative participation has the potential to
evolve into an independent form of
participation.
 Forms of participatory
development
• 4. Empowerment participation is where primary
stakeholders are capable and willing to initiate the
process and take part in the analysis.
• This leads to joint decision making about what
should be achieved and how.
• While outsiders are equal partners in the
development effort, the primary stakeholders are
primus inter pares, i.e., they are equal partners with
a significant say in decisions concerning their lives.
• Dialogue identifies and analyzes critical issues,
and an exchange of knowledge and
experiences leads to solutions. Ownership and
control of the process rest in the hands of the
primary stake
 The role of Non Governmental Organizations (NGOs)
in Disaster/Crisis Management
o NGOs are all over the world and play different roles
in various sectors of the economy.
o They are usually nongovernmental and non-profit
making organizations, which are voluntary and
humanitarian in nature.
o The focus of NGOs is usually to help needy people in
the society.
o However, the influence of these groups may depend
on the policies of a country since some states in the
world limit the activities of NGOs. Most NGOs work
closely with people and are therefore ready to adapt
to new changes in the society.
 Role of NGOs
o Since NGOs serve people, they have an objective and
always have experts on board to offer professional
and specialized assistance where necessary.
o It is important to note that the nature of NGOs vary
widely as there are those that are global, others are
regional, national and local, serving a small
population within a country.
o Global NGOs act as donors and as advocacy
organizations around the world, especially when
there is disaster or in disaster management.
 The Role of NGOs
o Essentially, the role of NGOs in Disaster Management
is focuses on disaster preparedness in different ways.
o Disaster preparedness refers to the ability of an
individual, group of people, or a country to respond
quickly and effectively when it is necessary.
o It offers all-level capacity to respond to a host of
dangerous situations when they arise in a disaster.
o They may include early warnings, risk assessment,
capacity building and stock keeping of emergency
supplies.
 The Role of NGOs
o Capacity Building for Disaster Management:
o For effective participation in disaster management,
NGOs collaborate with government agencies and
other bodies in different levels to develop capacity
and skills to handle and mitigate the effects of
disasters.
o In some cases, government officers actively take
part in coordinated activities, organized by NGOs for
disaster preparedness.
o This is important since disaster can befall anybody,
whether in the public service or private sector.
 The Role of NGOs

o Creating public awareness

o Therefore, NGOs are keep players in creating
public awareness about disasters and what we
need to do to prevent their occurrence, and
what to do, when such hazardous events
occur.
 The Role of NGOs
o Advocacy
o Another way through which NGOs take part in
disaster management is through advocacy.
o They have been known as strong advocacy
partners at all levels.
o They mostly engage governments in reviewing
various policies to address the concerns of
disaster preparedness in an effective way..
 The Role of NGOs
o NGOs may also develop an advocacy roadmap that
predicts opportunities available for a country or
group of people to invest in preparedness activities.
o Upon such a plan, they engage other partners,
including governments to get funds for disaster
preparedness interventions.
o This kind of advocacy is important because it
enhances policy formulation, development of a
strategy and proper drafting of a disaster
management program at all levels
 The Role of NGOs
o Besides preparedness, NGOs also take part in
assessment processes.
o Here, they assess the vulnerability and risk exposure
levels in their areas of operation.
o Additionally, this process seeks to establish how
people are able to respond to disaster, in terms of
available resources and capacities.
o It is paramount to involve other stakeholders and the
government at this level for funding and other
support.
o Together with capacity building at all levels, NGOs
remain key players in disaster management around
 The Role of NGOs
o Providing Humanitarian Assistance:
o Providing humanitarian aid to people who have been
struck by disaster--either natural or social (for
example, war)--is one of the long-established
activities of NGOs (non-governmental
organizations).
o Such aid can help mitigate the effects of protracted
intractable conflicts, or it can actually make those
effects worse.
o Humanitarian aid usually does help insofar as it
provides the most basic human needs of food,
shelter, clothing, and medical care.
 The Role of NGOs
o It can also help empower a group of people,
enabling them to better deal with their own
problems by giving them the strength to
address those problems in a coherent way,
without having to put all of their energy into
simply maintaining themselves.
o Yet, humanitarian aid can make a conflict
worse if the aid becomes a source of
contention, or provides resources to further
fuel the conflict.
 The Role of NGOs
o At times, it can also lead to dependency--
discouraging people from becoming
independent, rather than empowering them
as is intended.
o Thus, NGOs must be very careful about how,
where, when and what kind of aid is provided,
and must help the people receiving the aid
work toward eventual independence from it
Organisations involved in disaster
management
• Disaster management is a complex process involving
international, national and local organisations each
with a distinct role to play. To respond to disaster
situations a coordinated effort is required.
• The United Nations and its organisations
• Health Care in Danger project
• The International Federation of Red Cross and Red
Crescent Societies
• The International Committee of the Red Cross
• International non-governmental agencies
• National organisations
 Role of NGOs in Disaster
Management Summary
o Disaster preparedness awareness
o Advocacy and lobbying
o Risk assessment
o Capacity building for governments and
other organizations
o Providing humanitarian assistance
o Empowerment of local
groups/communities
 Role of NGOs in Disaster
Management Summary

o International NGOs act as donors for local

NGOs and governments
o Creating public awareness about impending
disasters
 Emergency Aid
• Emergency aid refers to help given to
populations affected by unpredictable natural
disasters or human conflicts.
• It is often very difficult to calculate the cost-
effectiveness of disaster relief because many
charities do not provide information about
their achievements, it is difficult to do rigorous
assessment in a disaster setting, and there is
so much variation between each disaster.
 Emergency Aid
• It is often distinguished from development aid by
being focused on relieving suffering caused by
natural disaster or conflict, rather than removing the
root causes of poverty or vulnerability.
• Development aid is aid given to support
development in general which can be economic
development or social development in developing
countries.
• It is distinguished from humanitarian aid as being
aimed at alleviating poverty in the long term, rather
than alleviating suffering in the short term.
 Emergency Aid
• id may be also classified based on urgency into
emergency aid and development aid
• Emergency aid is rapid assistance given to a
people in immediate distress by individuals,
organizations, or governments to relieve
suffering, during and after man-made
emergencies (like wars) and natural disasters.
• The term often carries an international
connotation, but this is not always the case.
 Emergency Aid
• However, we do not believe that emergency
aid charities are typically among the
most cost-effective.
 Challenges, problems of
emergency aid
i. Effectiveness
• Emergency aid is likely to be rushed and improvised,
reducing its effectiveness.
• The majority of attributable to disasters occur at the
time of the disaster, often before aid organisations
arrive.
• The most cost-effective to avert are in the mid- to
long-term after an event, but aid organisations tend
to focus only on the acute consequences of an event.
 ii. Coordination
• There is also a prevalent lack of coordination across
disasters and conflicts, and donating to an
organisation that presents a logistical or financial
burden, rather than solutions to the immediate
problems, will hinder rather than help.
• Iii. The range and likelihood of unpredictable
problems such as congestion, overcrowding or
blockades that can limit emergency responses and
that cannot simply be overcome with extra funding:
 iv. Logistics
• the biggest challenge in emergency aid is
logistics.
v. Inadequate Funding: This, as well as the
disproportionate amount of money that
disasters receive means that, in a large number
of cases, there is little room for more funding.
vi. Misuse of Funding: Charities often do not
spend as much as they raise, meaning that
money donated is likely to be spent on a
different intervention.
• So instead of giving to emergency aid, we
recommend giving to a charity where your
money is really needed and will
recommended charities.
 “What is a Crisis”
o An element of surprise that poses a threat to human
life and their property, organizations and society at
large
o Critical event or point of decision which, if not
handled in an appropriate and timely manner (or if
not handled at all), may turn into a disaster or
catastrophe.
o is any event that is, or is expected to lead to, an
unstable and dangerous situation affecting an
individual, group, community, or whole society.
o A turning point of events, for better or worse
 What is a “Crisis”?
o A crisis can be a disease eg HIV/Aids
o Economic crisis eg Recession
o Financial crises at organizational level,
o Natural disasters
o Technological failure
o leadership failure
o Man made crises such as civil wars etc
 Crisis Management
Definitions of crisis management:
o Crisis management is the range of process,
efforts, actions and interventions in which
individuals or organizations apply in order to
respond to and deal with events or risks that
poses a threat to harm individuals, groups,
organizations, property, communities and the
society at large.
A response to an element of surprise
(emergency concept)
o Crisis management can further be defined as
any kind of intervention aiming at responding
to and dealing with an element of surprise or
emergencies that pose a threat to an
organization, human life and their property
and the society at large
o Most crises are an element of surprise eg fire,
natural disasters etc
o You cannot anticipate a crisis, it is an
emergency!!!!! An element of surprise – a
 Crisis Management as a short
decision time
o Finally, crisis management can also be defined
as a short decision time in which individuals
or organizations respond to and deal with
events that poses a threat to harm their
organizations, property, communities, and the
society at large.
o Any delay in responding to a crisis, leads to
severe damage or loss of lives or property –
hence managers needs a rapid response to
emergencies
 Differences between ‘crisis
management’ and ‘risk management’

o A Risk is any potential threat that poses a

threat to human life, property, organizations,
businesses, communities and society at large.
o A risk is a potential threat that can cause
harm if not attended to on time!
o A risk can lead to a crisis!
 For example
o People living in disaster prone areas – are at
risk of facing disaster such as floods
o Climate change is a threat/risk to famine as a
crisis
o Political disputes is a risk to political violence
o Business failure is risk to financial crisis
o Religious disputes is a threat to religious
violence etc
 crisis management vs risk
management
o While crisis management focuses on
“responding and dealing” with crises or
emergencies that have already occurred or are
about to happen, on the other hand;
o Risk management is a range of processes,
efforts, actions and interventions of
identifying, assessing and dealing with
potential threats that may have caused a
crisis or emergency before, during and after
the crisis has happened
 crisis management vs risk
management
o Major difference is the focus of each:
o Crisis Management focuses on responding to crises
or emergencies after they have occurred or about to
occur and after they have occurred.
o While risk management focuses on identifying,
assessing and dealing with potential threats that may
cause a crisis.
o Risk assessment is a continuous exercise; before the
crisis, during the crisis and after the crisis.
 crisis management vs risk
management
o Risk management on the other hand is one of
the processes or interventions in crisis
management process, it is a tool of crisis
management, the first stage of crisis
management
o Organizations that conduct risk identification,
assessment and management are likely to
minimize the risk of facing crises or
emergences as the threats are detected and
dealt with before they cause harm.
 Crisis Management Process (logical
Process)
o Identifying a crisis,
o Planning a response,
o Responding to a sudden event that poses a
significant threat,
o Limiting the damage,
o Selecting an individual/team to deal with the
crisis,
o Resolving the crisis
Significance to crisis management
Significance to crisis management of the following
crisis management elements:
o Effective communication strategies:
 Timely response
 Raises awareness
 Correct information
o Preparedness:
 Rapid response
 Already available resources
 Contingencies are in place
o Effective logical response
 Limiting damage
o Suitability/sufficiency of resources
 Solves the problem
 Models and theories associated with crisis
management
Analysis of distinct phases of crisis management model
Distinct phases include:
o a ‘crisis mindset’,
o structural-functional systems theory,
o diffusion of innovation theory,
o unequal human capital theory,
o crisis management planning,
o contingency planning,
o emergency management,
o business continuity planning,
Models and theories associated with
crisis management
o role of apologies in crisis management,
o crisis leadership (organisational restructuring
and learning from crises to effect change),
o social media and crisis management
Models and theories associated with
crisis management

Distinct Phases of Crisis management

 Crisis Mindset
o A crisis mindset requires the ability to think of the
worst-case scenario while simultaneously suggesting
numerous solutions
o This involves trial and error scenarios and rapid
response plans
o Trial and error is an accepted discipline, as the first
line of defense might not work.
o It is necessary to maintain a list of contingency plans
and to be always on alert.
o Organizations and individuals should always be
prepared with a rapid response plan to emergencies
which would require analysis, drills and exercises.
 Crisis Mindset
o The credibility and reputation of organizations
is heavily influenced by the perception of their
responses during crisis situations.
o The organization and communication involved
in responding to a crisis in a timely fashion
makes for a challenge in businesses.
o There must be open and consistent
communication throughout the hierarchy to
contribute to a successful crisis-
communication process
 Trial & Error
o Trial and error is a fundamental method of
problem solving.
o It is characterised by repeated, varied
attempts which are continued until success, or
until the agent stops trying
 Contingency Planning
o What is a contingency plan??
o A contingency plan is a course of action designed to
help an organization respond effectively to a
significant future event or situation that may or may
not happen.
o It is a course of action to be followed if a preferred
plan fails or an existing situation changes.
o A contingency plan is sometimes referred to as "Plan
B," because it can be also used as an alternative for
action if expected results fail to materialize
o It is a plan or procedure that will take effect if an
emergency occurs; emergency plan
 Contingency planning
So what is contingency planning??
o Contingency planning is an activity undertaken to
ensure that proper and immediate follow-up steps
will be taken by a management and employees in an
emergency.
o Its major objectives are to ensure:
 containment of damage or injury to, or loss of,
personnel and property, and
 continuity of the key operations of the organization
 Contingency planning
o Contingency planning is developing responses
in advance for various situations that might
impact business.
o Although negative events probably come to
mind first, a good contingency plan should
also address positive events that might disrupt
operations - such as a very large order.
Contingency planning vs crisis
management
 Contingency planning vs crisis
management
o Contingency planning and crisis management are not
conflicting concepts but instead work in tandem.
o Contingency planning is the process of preparing for
potential emergencies, while crisis management is
the overall management of emergencies when they
do occur.
o Smart and diligent contingency planning is an
important aspect of crisis management because it
ensures that individuals and organizations make the
necessary preparations to be ready when trouble
strikes.
 The Importance and benefits of Contingency
Planning in crisis management
o Every business has the possibility of a situation that
adversely impacts operations.
o If the response to the situation is poor, it might have
a dramatic impact on the future of the business, such
as loss of customers, loss of data, or even the loss of
the business.
o A good contingency plan should include any event
that might disrupt operations.
 Importance and Benefits of Contingency
planning as a crisis management tool
o Contingency planning aims to prepare an
organization to respond well to an emergency
and its potential humanitarian impact.
o Developing a contingency plan involves
making decisions in advance about the
management of human and financial
resources, coordination and communications
procedures, and being aware of a range of
technical and logistical responses when a crisis
hit.
 Importance and Benefits of Contingency
planning as a crisis management tool
o Contingency planning is a management tool,
involving all sectors, which can help ensure
timely and effective provision of humanitarian
aid to those most in need when a disaster
occurs.
o Time spent in contingency planning equals
time saved when a disaster occurs.
o Effective contingency planning should lead to
timely and effective disaster-relief operations.
 Importance and Benefits of Contingency
planning as a crisis management tool
o contingency planning is planning done based
on predictions of previous events and
assumptions about potential events which can
have significant consequences, as such,
contingency planning are central to ensuring
that extreme events are adequately managed
without causing any devastating impacts.
o
 Importance and Benefits of Contingency
planning as a crisis management tool
o The outcome of the contingency planning
process leads to developing a contingency
plan which is a document which describes the
procedures, response strategy,
implementation process, operational support,
and which formalises the commitments of
organisations, equipment, and expertise to
respond to extreme events
 Importance and Benefits of Contingency
planning as a crisis management tool
o Contingency planning provides guidance for
managing catastrophic events by defining who
possess the capabilities, resources and ability to
coordinate response to foreseen, unforeseen and
extreme disasters
o Contingency planning is also considered as measures
developed to prepare for and to react to possible
event change which exceeds normal response efforts
but whose impact can severally affect security,
resources, assets, human and the society
 The Importance of Contingency Planning
Here are some specific areas to include in the plan:
 Natural disasters, such as hurricanes, fires, and
earthquakes
 Crises, such as threatening employees or customers,
on-the-job injuries, and worksite accidents
 Personnel, such as death of a senior manager, or
union members going on strike
 Data loss, such as loss due to natural disasters,
sabotage, or other criminal action (such as an attack
on a website)
 Mismanagement, such as theft, neglect of critical
duties, or accidental destruction
 The Contingency Planning Process

There are four steps to the contingency planning

process.
Step 1: Analyze Risks
o To begin, we need to list out all of the possible
events that could disrupt operations.
o We can use the list mentioned earlier to help
us brainstorm possible risks for our business.
 The Contingency Planning Process
Step 2: Determine the Likelihood and Impact of
Risks
o It is possible to come up with an enormous list
of potential impacts, but some of the events
will be so unlikely that it may not be
reasonable to include them in the plan.
 Here's a process to focus in on the
most critical events:
o List all possible events that could disrupt operations.
o Give each one a ranking from 1 to 10 based on its
impact on operations.
o For example, an explosion at the plant might be a 10,
while a fire at a specific machine might be a 3.
o Give each one a ranking based on your estimate of
the likelihood of the occurrence.
o It might be useful to make a chart for this, with a 1
to indicate that it might happen once in 100 years,
while a 10 might indicate that it could happen once a
month.
 Here's a process to focus in on the
most critical events:
o Multiply the impact ranking by the likelihood of
occurrence ranking to get a total score for each
possible event.
o Use the scores to rank the events.
o Begin working on the highest scores first in your
contingency planning and work down the list. You
may have a cutoff, so that you don't spend time
planning for scores below a specific value, since they
would have a lower impact and lower chance of
occurrence, and might not be worth the time to
address.
 Here's a process to focus in on the most critical
events:

o You might also look at the low score items and

come up with a general process to address any
items that occur that aren't specifically
addressed in the plan, with a decision chart to
determine steps to take.
 Step 3: Develop a Process for Each
Item
o Starting with your highest score events,
document each one:
o Disaster recovery, or steps to protect people
and property during the incident.
o This would include actions like evacuating a
building, contacting emergency personnel,
and accounting for all staff.
 Step 3: Develop a Process for Each
Item
o Continuity, or steps to keep the business
operational while the event is addressed.
o This would include actions like setting up an
off-site work location, transferring phone
lines, and contacting large customers to let
them know when their orders will be
delivered.
o Think in terms of the minimum acceptable
level of services, and make sure that level is
achieved.
 Step 3: Develop a Process for Each
Item
• Security, or steps to protect resources while
the event is addressed. This would include
actions like bringing in guards to restrict
access to damaged facilities.
 Step 4: Look at Alternatives

o Often, there are steps that can mitigate risks

or, in other words, steps that could be taken in
advance to reduce the possibility or impact of
the event.
o These would include actions like clearing
brush away from facilities and purchasing
business-interruption insurance.
o These steps should be evaluated, and the
most cost-effective steps should be separately
listed on a project plan, with a date for
 Contingency Plan Implementation

o Once the plan is completed, it should be distributed

to all people who have a role in any event included in
the plan.
o It's also a good idea to have a meeting of those
people, and go over the plan in detail, so they know
their role if something happens.
o It's also important to have a defined follow-up
method for your plan, so that any steps that need to
be implemented are completed and so that the plan
is reviewed on a regular basis.
 Contingency Plan Implementation

o A team should be assigned that is responsible for the

plan and meets on a regular basis (at least annually
and probably more often at the beginning).
o At each meeting, the current plan should be
reviewed for completeness and any new or changed
risks should be identified and analyzed.
o Mitigation plans should also be reviewed to make
sure they have been implemented.
o When the plan is updated, a summary of changes
should be created, and the summary and revised
plan should be distributed to all who would have a
role in any event included in the plan.
 Lesson Summary

o Let's review.
o Contingency planning is the process of developing
responses in advance for various situations that
might impact business.
o To protect the business as much as possible, it's very
important to have a contingency plan in place in
order to mitigate any issues that may arise.
o These issues can range from a loss of personnel to a
major natural disaster.
o Taking time to create and implement a thoughtful,
detailed plan will go a long way to protect the
 Structural-functional systems
theory
o Providing information to an organization in a
time of crisis is critical to effective crisis
management
o Structural functional systems theory
therefore deals with how organizations can
pass on or create an effective communication
systems within the organizational structures
during crisis
 Structural-functional systems
theory
o It focuses on the importance of flow of
information through the organizational
hierarchies/structures
o It recognizes the level of command, who is in
command possibly to release the information
to whom
 Structural-functional systems
theory
o Structural-functional systems theory
addresses the intricacies of information
networks and levels of command making up
organizational communication.
o The structural-functional theory identifies
information flow in organizations as
"networks" made up of members ".
Information in organizations flow in patterns
called networks.
 Structural-functional systems theory
o According to structural functions systems theory,
communication plays a pivotal role in crisis management.
o Correct flow of information across all hierarchies is essential.
o Transparency must be maintained at all levels.
o Management must effectively communicate with employees
and provide them the necessary information at the times of
crisis.
o Ignoring people does not help, instead makes situations
worse.
o Superiors must be in regular touch with subordinates.
o Leaders must take charge and ask the employees to give their
best.
 Diffusion of innovation theory,
o Another theory that can be applied to the
sharing of information during emergencies is
the “Diffusion of Innovation Theory”.
o Developed by Everett Rogers, the theory
describes how innovation is disseminated and
communicated through certain channels over
a period of time.
o Diffusion of innovation in communication
occurs when an individual communicates a
new idea to one or several others.
 Diffusion of innovation theory
o As the name suggests during crisis each employee
should think out of the box and come out with
something innovative to overcome tough times.
o One should be ready with an alternate plan.
o Once an employee comes up with an innovative idea,
he must not keep things to himself.
o Spread the idea amongst all employees and
departments.
o Effective communication is essential to pass on ideas
and information in its desired form.
 Diffusion of innovation theory,

o At its most elementary form, the process involves:

o (1) an innovation (new idea), then you pass on the
idea to
o (2) an individual or other unit of adoption that has
knowledge of or experience with using the
innovation, then you pass on the idea to
o (3) another individual or other unit that does not yet
have knowledge of the innovation, and
o (4) a communication channel connecting the two
units. A communication channel is the means by
which messages get from one individual to another.
 Unequal human capital theory
o Unequal human capital theory was proposed by
James.
o According to unequal human capital theory,
inequality amongst employees leads to crisis at the
workplace.
o Discrimation on the grounds of caste, job profile as
well as salary lead to frustrated employees who
eventually play with the brand name, spread
baseless rumors and earn a bad name for the
organization.
 Unequal human capital theory
o These are organizational crisis resulting from
discrimination lawsuits
o Unequal opportunities happens when some
employees receive fewer favors or rewards
from executive managers, compared to others
o These rewards include promotion, salary
increase etc
o Some are discriminated due to race, gender,
religion etc
 Unequal human capital theory

o Thus, discrimination lawsuits can invite

negative stakeholder reaction, damage the
company's reputation, and threaten corporate
survival
 Business continuity planning

o Business continuity planning (or business

continuity and resiliency planning) is the
process of creating systems of prevention and
recovery to deal with potential threats to a
company/organization
 Business continuity planning

o Any event that could negatively impact

operations is included in the plan, such as
supply chain interruption, loss of or damage
to critical infrastructure (major machinery or
computing /network resource).
o As such, BCP is a subset of risk management
 Business continuity planning
o When a crisis will undoubtedly cause a significant
disruption to an organization, a business continuity
plan can help minimize the disruption.
o First, one must identify the critical functions and
processes that are necessary to keep the
organization running.
o This part of the planning should be conducted in the
earliest stages, and is part of a business impact
analysis phase that will signpost “
o How much does the organization stand to lose?
 Business continuity planning
o Each critical function and or/process must have its
own contingency plan in the event that one of the
functions/processes ceases or fails, then the
business/organization is more resilient, which in
itself provides a mechanism to lessen the possibility
of having to invoke recovery plans (Osborne, 2007).
o Testing these contingency plans by rehearsing the
required actions in a simulation will allow those
involved to become more acutely aware of the
possibility of a crisis.
 Business continuity planning
o As a result, and in the event of an actual crisis,
the team members will act more quickly and
effectively.
o A note of caution when planning training
scenarios, all too often simulations can lack
ingenuity, an appropriate level of realism and
as a consequence potentially lose their
training value.
 Business continuity planning
o This part can be improved by employing
external exercise designers who are not part
of the organisational culture and are able to
test an organizations response to crisis, in
order to bring about a crisis of confidence for
those who manage vital systems (Borodzicz,
Edward P. (2005). Risk, Crisis & Security
Management).
 Business continuity planning
o Following a simulation exercise, a thorough and
systematic debriefing must be conducted as a key
component of any crisis simulation.
o The purpose of this is to create a link and draw
lessons from the reality of the simulated
representation and the reality of the real world.
(Borodzicz, 2005).
o The whole process relating to business continuity
planning should be periodically reviewed to identify
any number of changes that may invalidate the
current plan. (Osborne, 2007).
Emergency management
 Emergency Management
o Emergency management is the managerial function
charged with creating the framework within which
communities or organizations reduce vulnerability to
hazards and cope with disasters.
o Disaster management (or emergency management)
is the creation of plans through which communities
reduce vulnerability to hazards and cope with
disasters.
o Emergency or disaster management does not avert
or eliminate the threats; instead, it focuses on
creating plans to decrease the effect of disasters.
 Emergency Management
o Emergency management seeks to promote
safer, less vulnerable communities or
organizations with the capacity to cope with
hazards and disasters.
 Emergency Management
o Emergency management is made up of activities
which are put in place in anticipation of a risk, hazard
or actual or eventual emergency to expedite effective
emergency response.
o Within the context of this definition, emergency
preparedness include contingency planning, but not
limited to plans, exercise, training, organise and
equip, review of plans, early warning, public
education and information, etc
 Crisis Management Model
• Crisis refer to unplanned events which cause
harm to the organization and lead to
disturbances and major unrest amongst the
employees.
• Crisis gives rise to a feeling of fear and threat
in the individuals who eventually lose interest
and trust in the organization.
 Crisis Management Model

• Gonzalez-Herrero and Pratt proposed a Crisis

Management Model which identified three
different stages of crisis management.
• According to Gonzalez-Herrero and Pratt, crisis
management includes following three stages:
1. Diagnosis of Crisis Stage
o The first stage involves detecting the early indicators
of crisis. It is for the leaders and managers to sense
the warning signals of a crisis and prepare the
employees to face the same with courage and
determination.
 1. Diagnosis of a crisis stage
o Superiors must review the performance of their subordinates
from time to time to know what they are up to.
o The role of a manager is not just to sit in closed cabins and
shout on his subordinates.
o He must know what is happening around him. Monitoring the
performance of the employee regularly helps the managers
to foresee crisis and warn the employees against the
negative consequences of the same.
o One should not ignore the alarming signals of crisis but take
necessary actions to prevent it.
o Take initiative on your own.
o Don’t wait for others.
 2. Planning stage
o Once a crisis is being detected, crisis management team must
immediately jump into action.
o Ask the employees not to panic.
o Devise relevant strategies to avoid an emergency situation.
o Sit and discuss with the related members to come out with a
solution which would work best at the times of crisis.
o It is essential to take quick decisions.
o One needs to be alert and most importantly patient.
o Make sure your facts and figures are correct.
o Don’t rely on mere guess works and assumptions.
o It will cost you later.
 3. Adjusting to changes stage

o Employees must adjust well to new situations

and changes for effective functioning of
organization in near future.
o It is important to analyze the causes which led
to a crisis at the workplace.
o Mistakes should not be repeated and new
plans and processes must be incorporated in
the system.
 Crisis Management Strategy
o Crisis management strategy (CMS) is corporate development
strategy designed primarily to prevent crisis for follow-up
company advancement.
o Thus, CMS is synthesis of strategic management.
o It includes projection of the future based on ongoing
monitoring of business internal and external environment,
o as well as selection and implementation of crisis prevention
strategy and operating management.
o This is including current status control based on ongoing
monitoring of the internal and external environment,
o as well as crisis-coping strategy selection and implementation.
 Role of apologies in crisis
management
o There has been debate about the role of apologies in crisis
management, and some argue that apology opens an
organization up for possible legal consequences.
o However some evidence indicates that compensation and
sympathy, two less expensive strategies, are as effective as an
apology in shaping people’s perceptions of the organization
taking responsibility for the crisis because these strategies
focus on the victims’ needs.
o The sympathy response expresses concern for victims
o while compensation offers victims something to offset the
suffering.
o Thus, compensation and sympathy are two types of
apologies
 Crisis leadership

James identifies five leadership competencies which

facilitate organizational restructuring during and
after a crisis:
o Building an environment of trust
o Reforming the organization’s mindset
o Identifying obvious and obscure vulnerabilities of the
organization
o Making wise and rapid decisions as well as taking
courageous action
o Learning from crisis to effect change.
 Crisis leadership
o Crisis leadership research concludes that
leadership action in crisis reflects the
competency of an organization, because the
test of crisis demonstrates how well the
institution’s leadership structure serves the
organization’s goals and withstands crisis.
o Developing effective human resources is vital
when building organizational capabilities
through crisis management executive
leadership.
 Social media and crisis
management
o Social media include internet forums where
people interact and chat.
o Social media include Twitter, Skype,
Facebook, Whatsap etc
o Social media has accelerated the speed that
information about a crisis can spread.
o The viral effect of social networks such as
Twitter, whatsap, facebook etc means that
stakeholders can break news faster than
traditional media. -
 Social media and crisis
management
o Social media also gives crisis management teams
access to real-time information about how a crisis is
impacting stakeholder sentiment and the issues that
are of most concern to them.
o The challenge of social media is to control the
information which makes managing a crisis harder.
o This can be mitigated by having the right training and
policy in place as well as the right social media
monitoring tools to detect signs of a crisis breaking.
 Social media and crisis
management
o Organisations should have a planned approach to
releasing information to the media in the event of a
crisis.
o A media reaction plan should include a company
media representative as part of the Crisis
Management Team (CMT).
o Since there is always a degree of unpredictability
during a crisis, it is best that all CMT members
understand how to deal with the media and be
prepared to do so, should they be thrust into such a
situation.