What is Crisis Management?
Crisis Management is needed when the company faces an unforeseen event of high impact that threatens it, its stakeholders or society in general .
Crisis situations usually have three elements in common:
- There is a considerable threat for the organisation.
- It comes as an unforeseen event.
- Reaction window is very limited.
Crisis force the organisation to change, because its structure and usual processes are no longer able to answer to the new challenges. They need to be changed very fast, which is the fourth element that crisis have in common:
- The need to change the organisation, renew its processes, in order to be able to overcome the crisis.
Differently from Risk Management, that tries to identify and anticipate the risks and put in place the measures to avoid them and prevent damages, in a Crisis Management situation the organisation has to couple with the threats after they have already materialised. From this point of view, the assignment of a Crisis Manager, able to understand the crisis situation from its various perspectives, to value the impact of its main aspects and capable to design an action plan is of high importance. This might be a key decision in order to overcome the crisis situation and contain the damages.