Risk Management: Three Types Of Crisis Management

CRISIS MANAGEMENT

Crisis management is process which deals with a major event that threatens to harm the company, its stakeholder and the general public. Three elements are common to a crisis:

1) Threat to the organisation

2) The element of surprise, and

3) A short decision and action time.

In contrast to Risk Management, this involves assessing potential threats and finding the best way to avoid the threats, Crisis Management involves dealing with threats before, during and after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures

Smoldering crisis begin as minor, due to negligence it leads to crisis.

CRISIS MANAGEMENT TEAM(CMT)

The activation and deactivation of crisis management team is led by key lead (decided by the function of the crisis) with the support of two responsible sub-leads.

When the crisis management team is activated, the authorities for making all decisions required for managing the crisis are fully entrusted to the said team. When the Crisis Management Team is deactivated, all tasks and decision making authority revert to the line functions.

CRISIS AND COMPETENCIES NEEDED IN THE CRISIS MANAGEMENT TEAM:

Following leadership competencies are required to handle all types of crisis:

1) Signal detection

2) Preparation and prevention

3) Containment and damage control

4) Business recovery

5) Learning and review

ROLES AND RESPONSIBILITIES OF TEAM

1) The nature of crisis and the time of occurrence are independent and the management of each crisis would differ from others. The identified key lead and Sub-lead members are responsible for each crisis with their functional expertise and dealing with the situation

Central Crisis helpline: [phone]

4) During each crisis, the key lead must initiate immediate actions in collaboration with respective Sub-leads and communicate appropriately to the supervisors and leadership Team in order to avoid or minimize the losses occurred. It means the lead members should not hold the mitigation actions themselves and try to terminate the crisis with their actions.

5) Further, before the initiation of actions to control or mitigate complete damage ( likely to be damaged), the key lead must organize a meeting, discuss the severity of the crisis, mobilize resources needed, extend communication to external and internal affected and support concerned personnel with an aim to terminate the crisis.

6) On successful termination of the crisis, assess the damage (including the damage may be compensated to others) and time required for business recover must be reported to complete leadership team and to DAG, if needed.

Crisis Management Workflow-what to do in crisis?

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