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Practices                                          

                                                            

CRISIS MANAGEMENT

 

Crisis management is the systematic attempt to avoid organizational crises or to manage those crises events that do occur (Pearson & Clair, 1998). A crisis is a major, unpredictable event that threatens to harm an organization and its stakeholders. Although crisis events are unpredictable, they are not unexpected (Coombs, 1999). Crises can affect all segments of society – businesses, churches, educational institutions, families, non-profits and the government and are caused by a wide range of reasons. Although the definitions can very greatly, three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time (Seeger, Sellnow & Ulmer, 1998).

The practice of crisis management involves attempts to eliminate technological failure as well as the development of formal communication systems to avoid or to manage crisis situations (Barton, 2001), and is a discipline within the broader context of management. Crisis management consists of skills and techniques required to assess, understand, and cope with any serious situation, especially from the moment it first occurs to the point that recovery procedures start.

Crisis management consists of methods used to respond to both the reality and perception of crises such as a Crisis Management Plan. Crisis management also involves establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. It consists of the communication that occurs within the response phase of emergency management scenarios.

The fundamental mission of the Crisis Management Group aT Skill is to take the lead in responding to “bet-the-company” or other major legal crises for our clients. Unexpected crisis events — a catastrophic facilities explosion, a publicly announced criminal indictment, the discovery of financial statement errors, reports of product defects, a corporate governance or compliance failure, just to name a few — can quickly destabilize a company. Instantaneous and sustained response is crucial, especially when media scrutiny is immediate and intense.