Crisis Management becomes crucial given the unpredictability of global events, whether in order to try to identify potential crises before they occur and their respective responses, or to draw plans to deal with this type of situation. In the event of a crisis, the organization must be able to adapt and act efficiently to survive.
Any company, regardless of the sector in which it operates, size or degree of maturity, can face problems that negatively affect its normal operations. An crisis it can take many forms – a pandemic, the death of a CEO, a terrorist attack, a data breach or a natural disaster – and incur tangible and intangible costs to an organization in terms of lost sales, damage to its reputation and a decrease in business revenue.
Companies that implement a continuity plan in the event of unforeseen contingencies can mitigate the effects of a negative event. It is this planning process in the event of a crisis that we refer to as crisis management.
It integrates risk analysis mechanisms in operations, identifying potential adverse events that may occur and estimating their probability of occurrence. By running simulations and random variables through risk models, it becomes possible to assess the probability of a threat occurring in the future, the best and worst expected results, and the damage that the organization would incur if this threat were to materialize.
This information is the basis for creating a business plan. crisis management, intended to contain any emergency should it become a reality. This involves identifying stakeholders, formulating messages and establishing team responsibilities to trigger immediate and effective communication.
Crisis management seeks to minimize the damage a crisis can cause. However, this does not mean that crisis management is the same as crisis response. Management, understood in this dimension, is a comprehensive process put into practice even before a crisis happens, with tools implemented before, during and after a crisis.
Although the business may slow down for a short period of time, while the company acquires, resumes its activity or implements necessary adaptations, the perception in front of the public must be assured.