Crisis Management

Crisis Management

Crisis management is the application of strategies designed to help an organization deal with a sudden and significant negative event.

A crisis can occur as a result of an unpredictable event or an unforeseeable consequence of some event that had been considered as a potential risk. In either case, crises almost invariably require that decisions be made quickly to limit damage to the organization.

The nature of the potential damage varies based on the nature of the crisis. In most cases though, a crisis can affect health or safety, the organization's finances, the organization's reputation, or some combination of these. A devastating fire could be a crisis that puts the organization's finances in jeopardy. However, if the fire occurs during business hours, then the fire might also jeopardize health and safety since employees may find themselves in harm's way.

Crisis management goals

Crisis management seeks to minimize the damage a crisis causes. However, this does not mean crisis management is the same thing as crisis response. Instead, crisis management is a comprehensive process that is put into practice before a crisis even happens. Crisis management practices are engaged before, during and after a crisis.