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August 26, 2021

What is Crisis Management Plan? What Factors to consider while designing a Crisis Management Plan?

What is Crisis Management Plan?

A Crisis Management plan could be a plan that outlines the steps to require once your area unit is featured with a crisis. 

Crisis Management Plan

Crisis Management helps your company respond quickly and effectively to minimize any damage or loss while protecting its reputation. A good plan should provide information on how to handle crises before they happen and what to do in the event of an emergency. They include:

  • Learn concerning what constitutes a "crisis."
  • Understand who needs access to the present Document.
  • Find out that key members would like training for handling emergencies.
  • Create a detailed list of procedures for each type of situation.
  • Determine where best practices exist within our organization.
What is a crisis?
A crisis can be defined as an event or set of circumstances that brings the possibility, danger, and opportunity for significant change. Crises may cause distress but also offer opportunities to grow in new ways. They are typically unexpected events that disrupt regular life (e.g., the death of your spouse) and make us feel like we cannot continue our current path without significant changes being made. It could be anything from financial difficulty to ecological disaster.

Types of crisis:
Types of Crisis Management Plan
  • Personal Crisis - a personal crisis is once one's emotional wants don't seem to be met by their surroundings (home, school).
  • Financial Crisis - When there is an economic recession, people cannot afford food for themselves and their families.
  • Ecological Crisis - When the environment is being destroyed due to climate change or pollution.
Why Crisis Management Plan?
It is more important than ever to have a crisis management plan. This means that you need to be prepared for when things go wrong to minimize any damage done. Here are four reasons why you need a crisis management plan:
  • Crisis Management Plans Reduce Anxiety - When things go wrong, anxiety levels skyrocket in organizations. A crisis management plan will help reduce those feelings of stress and worry by providing employees with clear instructions on responding during an emergency. 
  • Crisis Management Plans Cut Costs - When your company has a crisis, there is often a lot of time and money to handle the situation. With a crisis management plan in place, you can avoid unnecessary costs by allowing your team to know what they should do before an emergency arises.
  • It's essential to think ahead and prepare for emergencies, so they do not become disasters.
  • You want to minimize impacts on your brand reputation.
  • Your customers deserve better than being left in the dark with little information.

Characteristics of Crisis Management Plan:
Good crisis management arrangement can embody six characteristics:
  • Clearly outline roles and responsibilities
  • Establish stakeholders and their relationships to your organization, keep them educated
  • Develop response ways for numerous things (crisis versus non-crisis), anticipate what could happen if things fail.
  • Assign somebody answerable for managing the method; they'll ensure everybody else will get their job.
  • Assign someone accountable for managing the process; they will make sure everyone else does their job.
  • Establish channels of communication among all key players so messages are sent quickly and efficiently.
How to Create a Crisis Management Plan?
How you'll be ready for once and if a crisis happens so that the impact is stripped-down.
  • Identify potential risks.
  • Develop strategies in advance to address them.
  • Create an action plan with timelines and deadlines.
  • Involve key decision-makers in the process early on. 
  • Communicate your plans regularly to all employees and stakeholders.
  • Conduct drills of your plans at least once every year or two years. 
  • Document everything.
What do you need to include in your crisis management plan?
Crisis Management Plan Process
  • Establish Crisis Command Center: Create an area that all stakeholders can use during crises to come together and work on solutions collaboratively.  
  • Develop Core Communication Plan: Make sure everyone knows who is responsible for what in terms of communications and plan before an emergency or major incident occurs.
  • Conduct Risk Assessment: Assess potential risks to your organization, including natural disasters, human error, and sabotage, among others, so you know what could happen next time. 
  • Identify and rank risks in order of severity: Map the potential impact to your organization, including loss of revenue, lives lost or injured as well as other possible ramifications for you and your stakeholders. Create a mitigation plan that will reduce the risk to an acceptable level by eliminating it outright or reducing its likelihood of happening again. 
  • Reduce exposure: Ensure employees know about safety procedures at work such as evacuation routes; have emergency kits ready in case disaster strikes; make plans with local authorities if need be so they can help evacuate people who are unable to get out on their own during disasters. 
  • Prepare for crisis communication: Build up existing channels (e.g., social media) with new messages.

The Importance of a Crisis Communication Strategy:

Businesses of all types and sizes are faced with the threat of a crisis. The stakes are high in how you communicate during this time, but many ways help you get your message out properly. It is essential to plan for these scenarios to be prepared and know what steps to take.
A crisis can arise from any number of sources - natural disaster, product recall, social media mishap, but how you will impact your customer base and overall well-being as a company.

  • Testing and updating - One of the best ways to prepare for a crisis is to create an emergency plan. The following are tips that will help you develop and update your plan:
  1. Learn about the types of crises that might happen in your industry or organization.
  2. Identify potential risks related to your business or organization.
  3. Create a strategy for how you would handle each type of crisis.
  4. Conduct drills with employees and stakeholders to know their roles in the event of a real-life crisis.
  • Standards: standards in the crisis management plan are put in place to ensure that the people involved with the company know what to do when a problem arises. These standards can be used as a guideline for decision-making and help to organize resources. They are essential in large companies where there are many departments, employees, and systems involved.
    Here are some standards you should include in any crisis management plan:
  1. A public relations strategy. 
  2. An incident response team. 
  3. Communications with employees.
  • Emergency response planning:
    Emergency response planning is a part of a crisis management plan that helps to manage unforeseen business emergencies. Every organization must have an appropriate and well-rehearsed emergency response plan, which allows them to make quick decisions during crises. The following are some of the ten different phases involved to develop planning:
  1. Preparing for Emergencies - Identifying risks that may lead to emergencies or disasters and applying preventive measures against them.
  2. Contingency Planning - Contingency Planning phase involves discussing all possible scenarios with all stakeholders to develop contingency plans.
  3. Establish clear objectives.
  4. Create a list of resources.
  5. Determine what needs to be done by whom and when.
  6. Assign tasks to specific people and delegate responsibility appropriately.
  7. Keep records of all plans made so they can easily be referred to if necessary (including both digital copies and hard copies stored somewhere safe outside of the office building or home). 
  • Crisis Management - After taking necessary precautions, the next step will be to manage a crisis. This includes an analysis of the problem and then taking measures to tackle it.

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