- In a corporate setting, a “crisis” is defined as a serious, unexpected situation that presents an extraordinary level of threat, time pressure and extreme stress.
- Corporate crises can spring from numerous origins: A technology failure following an earthquake sparked the Fukushima nuclear disaster of 2011. Management missteps led to the 2008 financial crisis. Terrorism, takeover bids and pressure from outside groups also may trigger crises.
- Have your crisis management plan in place before a catastrophe strikes to help ensure an orderly, effective and timely resolution.
- Crisis management unfolds in three phases: planning for a potential crisis, managing the crisis and managing the aftermath of the crisis. Senior executives must be dedicated to spending time and resources on planning and preparation.
- During all three phases, an external adviser can help guide and refine the process. However, crisis management advisors may have trouble convincing senior executives to spend time and money on preparation.
By Jon White