Cvn Risk Management

Case Introduction

Few circumstances test a company’s reputation or competency as severely as a crisis. Whether the impact is immediate or sustained over months and years, a crisis affects stakeholders inside and outside of a company. Crisis management is a matter of anticipation and proactive behavior. When a crisis struck Capay Valley Naturals (CVN), they acted fast and strategically to protect their critical business processes. The fact that CVN had a good crisis management plan in place got them through the initial impact of a major event and its aftermath, to the restoration of operations and the preservation of the company's brand. The aim of crisis management and business continuity is to create a framework which strengthens organizational resilience. (Weiner, 2006)

In this paper, I will explain my analysis of CVN’s crisis management program to explore the elements and benefits of selecting the right business continuity plan (BCP) for the company. My first simulation was strictly about the corrective actions of the business and my second simulation was the ‘feel good, feel right’ simulation. The most challenging part of the case simulation is setting aside my personal reactions and deciding what is best for the business. I have to always remind myself that my number one priority is to protect CVN’s brand by staying true to its core values and avoid negative perceptions in the publics’ eye. CVN should always be portrayed to the world as a committed and honest dealer in organic produce.

Simulation 1

Option 1: In the graph below it appears that I have made all the correct business decisions on behalf of CVN. Crisis management starts with good risk analysis and scenario planning on how to handle any crisis. When the wrong dispatch crisis happened, my first reaction was to call back all produce. By making this decision, I have cost the Company $2.15M in sales loss. I didn’t have a second thought about my decision, because I know it was the right...