Crisis Management becomes crucial in the face of the unpredictability of global events, both to try to identify potential crises before they occur and their respective responses, and to draw up plans for dealing with such situations. In the event of a crisis, the organization must be able to adapt and act efficiently in order to survive.
Any company, regardless of its industry, size, or degree of maturity, may face problems that negatively affect its normal operations. A crisis can take many forms - a pandemic, the death of a CEO, a terrorist attack, a data breach, or a natural disaster - and lead to tangible and intangible costs for an organization in terms of lost sales, damage to its reputation, and a decrease in revenue.
Companies that implement a continuity plan in case of unforeseen contingencies can mitigate the effects of a negative event. It is this process of planning in the event of a crisis that we refer to as crisis management.
This integrates risk analysis mechanisms into 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 evaluate the probability of a threat occurring in the future, the best and worst expected outcome, and the damage the organization would incur if that threat were to materialize.
This information is the basis for the creation of a crisis management,this is designed to contain any emergency should it become a reality. It involves identifying stakeholders, formulating messages, and establishing team responsibilities to trigger immediate and effective communication.
Crisis management seeks to minimize the damage that 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 in place before a crisis even happens, with tools implemented before, during, and after a crisis.
Although the business may slow down for a short period of time while the acquiring company resumes its activity or implements necessary adaptations, public perception must be ensured.