The British Standards Institute gives a definition as to what a crisis is. It is an event that has the ability to threaten an organisation and it is derived from unprecedented circumstances. If a business is strategic about dealing with a crisis, then they can lessen its effects with timely and strategic planning along with being able to adapt to any situation in a timely manner.
Every business will have their own explanation of how they define crisis. What is at the core of every business’s definition, is the ability to respond and prepare for any major situation. The definition should seek to think about the long-term trust and acknowledge the effects and the impacts that a sudden or unforeseen circumstance could have, not only to themselves but to the business’s shareholders.
Crisis management allows businesses to think about their values and reputation in the long term and seeks to maintain a confidence in the resources it already has and the shareholders within the business. Crisis management should be treated as a strategic activity.
An implication of crisis management is that it dictates to the planning and active involvement by senior managers. It is the responsibility of all, and no specific task should be assigned. When a crisis is managed successfully, all senior managers have an active and equal role, where no one task is carried out by an individual.
We all know as business leaders that crises are inevitable, but a crisis does not necessarily have to be feared. When leaders know what they can do when facing a crisis, they will be more prepared for the next time.
