Crisis Management

Crisis management refers to the identification of a threat to an organization and its stakeholders in order to mount an effective response to it.

Due to the unpredictability of global events, many modern organizations attempt to identify potential crises before they occur in order to sketch out plans to deal with them. When and if a crisis occurs, the organization must be able to drastically change its course in order to survive.


Crisis Management Definition

Crisis management is not necessarily the same thing as risk management. Risk management involves planning for events that might occur in the future, crisis management involves reacting to negative events during and after they have occurred.


A crisis can either be self-inflicted or caused by external forces.

  • Examples of external forces that could affect an organization’s operations include natural disasters, security breaches, or false rumors that hurt a business's reputation.
  • Self-inflicted crises are caused within the organization, such as when an employee smokes in an environment that contains hazardous chemicals, downloads questionable computer files, offers poor customer service that goes viral online. An internal crisis can be managed, mitigated, or avoided.


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