Poor Crisis Management in Toyota and Bp

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MSC Risk, Crisis and Resilience Management 13 Assignment: case study: Toyota recall crisis and BP Gulf of Mexico Disaster,2010 WORD COUNT: 3,300 Crisis Management and Governance 1 Introduction. All organizations from all sectors (public, private and not-for-profit) face the possibility of disruptive events that have impacts ranging from mere inconvenience and short-lived disruption of normal operations to the very destruction of the organization. Organizational functions supporting business disruption prevention, preparedness, response and recovery such as risk management, contingency planning, crisis management, emergency response, and business resumption and recovery are thus established and resourced based upon the organization’s perception of its relevant environments and the risks within those environments. Organizations react based on the level of perception that is attributed to risk such as emergencies, crisis or disasters. (Borodzicz,2005). The concept “Crisis Management” CRISIS In an attempt to define crisis management, it is very important that the term ‘crisis’ is first explained. Coombs (1999) , cited in (James, Lynn & Kelly, 2011) define crisis as ‘an event that is unpredictable and a major threat that can have an adverse effect on an organization, industry, or its stakeholders if improperly handled. Crisis should be seen as not just having a negative effect as Coomb’s definition, but also be seen as a turning point, or an opportunity for organizations to show their commitment to responsible behavior. It is also acknowledged that crisis often represents ‘turning points in organizational life as they present opportunities to establish a reputation for competence, to shape the organization and to tackle important issues. . Regester (1987) Other scholars such as Curtin, (2005) identify crisis to be of three kinds;
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