Importance of Crisis Planning

by Purvi Dalvi Writer

Crisis planning is undertaken by every successful business set-up today. Whether it is a manufacturing unit, advertising agency, consultancy or corporate firm, all businesses strategize their crisis communication plan.

What is crisis management?

Crisis management involves how a company or an organization treats and deals with a major emergency which may potentially cause harm to the business itself as well as the stakeholders and in some cases even the customers, that is, the general public.

Crisis management has perhaps become even more important for businesses today, because of globalization. There are a number of exports and imports that are taking place, natural as well as manmade disasters that are occurring as well as cross-cultural interaction that is happening. Such development and communication may lead to some problems which have to be managed effectively for the safety of the business.

What makes up a crisis?

A situation may be considered as a crisis if the following 3 factors come into play-

The rise of a threat to the company or organization
If this threat comes as a surprise to the business
If a short time to make a decision is involved

According to S. J. Venette, the crisis may be explained as a transformation after which the old system of functioning cannot be maintained anymore, and needs to be altered. Thus, a fourth factor comes to play in this case, and that is, the need for change.

Reasons for a company or organization to have a crisis communication plan-

Some of the most important reasons that make crisis planning essential are-

It helps in maintaining safety as well as the well-being of the company’s employees, stakeholders as well as customers.
It helps maintain public relations and the reputation of a company.
It helps in the maximization of productivity.
It offers satisfaction and peace of mind to the employer.

An effective crisis plan should involve offering employees the right training regarding safety as well as customer care. It should also involve how to deal with the media in case a crisis does come up.

Most importantly, crisis planning should be done keeping in mind the laws as well as regulations. The crisis management team should ensure that they do not violate any laws of the land when it comes to dealing with threats.

Crisis planning and management are extremely necessary for this time and date. A company or organization that is prepared to handle any crisis will be able to overcome any threats that arise in the future.