Crisis Management

DR-7 CTMC Crisis Management Strategy

Short-Term & Long-Term Crisis Management Plans Good Crisis management covers both, development of short term and long-term crisis management plans. Short-Term Crisis Management Plan: A crisis can be seen as having 5 phases; the diagram below presents these stages. The phases follow a chronological order and the crisis management strategy must be equipped to tackle each of them individually.

An effective crisis management strategy can curb the crisis in one of the early phases; if that is the case the company can directly enter the recovery stage and proceed to the learning phase to further strengthen its strategy. The first few hours after the occurrence of the disaster are the most critical; it is the stand the company takes during these hours that shows to the public the intent of the company. And it’s the intent of the company that primarily determines public reaction not the disaster itself. Thus incorporating a comprehensive communication plan becomes a very important part of the crisis management strategy. Following are the components that should be a part of a crisis management strategy that effectively controls the situation in the short run.  Clear definition of crisis – one cannot respond to a crisis unless it is clearly identified     Identify types of crisis Categorizes crisis with respect to their intensity.

Set specific objectives The outcomes that are required from the strategy these could include information dissemination, damage control etc.

Page 1 of 3

DR-7 CTMC Crisis Management Strategy



Set up a crisis control team  Roles   Assess the risk, validity, severity, extent and the liabilities arising from the situation Characteristics  Should be isolated from daily business concerns  Must have a centralized information flow  Should ideally be headed by the CEO, if not must have a clear leader who presents the company’s point of view to the external audience  Involve employees in...