I begin this by giving you tree definitions of he crisis:
• “turning point for better to worse” (Fink, 1986)
• “a major occurrence with a potentially negative outcome affecting am organization, company or industry, as well as its publics, products, services or good name” (Fear Banks, 1996)
• “an major unpredictable event that has potentially negative results. The event and its it’s employees, products, services, financial condition, and reputation” (Barton, 1993)
We begin to see some common traits emerge from the survey of definitions. A crisis can be defined as an event that is an unpredictable, major threat that can have a negative effect on the organization, industry, or stakeholders if handled improperly.
Crisis management represents a set of factors designed to combat crises and lessen the actual damage inflicted by the crisis. Put another way, crisis management seeks to prevent or lessen the negative outcomes of a crisis and thereby protect the organization, stakeholders, and/or industry for damage. There are four basic factors involved in crisis management: prevention, preparation, performance, and learning.
Prevention represents steps taken to avoid crisis. Crisis managers often detect the warming signs of a crisis and then take actions that prevent the crisis from occurring. From instance, a faulty toaster is recalled before is overheating problem causes any fires or injuries to customers. Prevention goes unseen by the public. We rarely read news stories about the crisis that did not happen.
Preparation is the best known factor in crisis management because it includes the crisis management plan (CMP). If people know nothing else about crisis management, they know that an organization should have a CMP. The CMP is the tip of the crisis management iceberg. Although people think the CMP is the crisis management process, in actuality most of the crisis management process is unseen. Preparation involves not only the...