Crisis Management

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CRISIS

MANAGEMENT
What is
a
crisis?

 A crisis is a condition of instability or


danger, as in social, economic, political,
or international affairs, leading to a
decisive change.
-dictionary
What makes an event a
crisis?

 If stakeholders believe
that an organization is in
crisis, a crisis does exist,
and stakeholders will
react to the organization
as if it is in crisis.
What is a crisis?
 A crisis is the perception of
an unpredictable event that
threatens important
expectancies of stakeholders
and can seriously impact an
organization’s performance
and generate negative
outcomes.
- W. T. Coombs
Who are the
stakeholders?

 Stakeholders are persons or groups


that are affected by or can affect an
organization (Bryson, 2004))
 Primary stakeholders (eg.
Employees, investors, customers,
suppliers and the government) can
stop organizational operations and
trigger a crisis.
 Secondary stakeholders or
influencers (eg. Media, activist
groups, and competitors) “cannot
stop an organization from
functioning, but they can damage
it” (Clarkson, 1995; Donaldson &
Preston, 1995).
How can organization combat
crises and lessen the actual
damage inflicted?
Crisis Management
Prevention and
Mitigation

 detect warning signs


and then take actions
designed to prevent
the crisis.
Preparation

 design a Crisis
Management Plan
(CMP)
 diagnose crisis
vulnerabilities
 select and train a
crisis management
team and
spokespersons
 create crisis portfolio,
and
 refine a crisis
communication
system.
apply or test the
preparation
components to a
crisis.

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