What is Crisis Management Plan and Why Do We Need One?
Crisis management is the process carried out by any organization to prevent, prepare for, and respond to events that threaten to harm people or property, damage reputation, or impact the bottom line.
Crises can cost an organization money, hurt productivity, and can easily threaten the long-term performance of your business, especially if you are not prepared.
Why do we need a crisis management plan?
A Crisis Management Plan describes the processes that an organization uses to respond to a perilous situation that could adversely affect its bottom line, reputation, or operations.
Being prepared will help an organization save money, save time, save reputation, and can even save lives.
The costs of mismanaging a crisis can range from the minor things (replying to several negative reviews) to the utterly overwhelming (a manufacturing plant going up in flames without a response plan) every crisis shares a few risks in common.
These include risk of legal action, operational disturbances, damage to reputation, and in the extreme cases cause injury, death, or financial damage so intense there is no longer any capacity to continue business operations.
Most crises that include global crises share another thing in common, which is damage can be stopped or significantly reduced by having a plan integrated into daily business operations.
Crisis Management Plan
Without a plan, you are more likely to come across as unskilled, liars, or complete bad guys. When crises occur, people expect information and updates quickly nowadays, and if you cannot get strong messaging to the right audiences because you are scrambling internally, you make the crisis worse.
In case of a financial crisis, we guarantee you will lose more money than you needed to. These losses come both as expenses and from less tangible assets, like lost market share and productivity.
For example, the recent COVID pandemic led to many companies permanently shutting down, proving that lack of preparation threatens the continuity and existence of any organization.
When you do not have a crisis handling procedure you make more mistakes. Nobody performs at peak performance when they are under pressure, and in the middle of a crisis is where you do not want to make blunders that damage your credibility.
Now that we have shed light on the disadvantages of not having a crisis management plan, how about we also talk about the advantages of having a working crisis management plan in place?
Planning means fewer chances for negative situations to erupt and become genuine crises. With a crisis-specific plan, you get the tools to handle unexpected damaging issues such as the economic crisis in a way that will at least reduce and avoid their impact.
Planning safeguards your most important asset, which is your company’s reputation. If you are having a tough time understanding the value of reputation.
A recent study by Weber Shandwick confirmed that global companies, on average, attribute over 60 percent of their organization’s market value to that company’s overall reputation.
Now you understand the serious harm to your good name will cost?
A crisis management plan helps to keep the doors to your organization open. Having a working plan in place to deal with severely damaging scenarios such as the global economic crisis is critical to making sure you return to business as usual after the crisis.
Protecting the continuity of your business, maintaining your reputation, and having crisis communications with stakeholders i.e. business partners, employees, and regulators during a tragic situation is crucial to keeping your brand in existence long enough to begin the recovery process.
As you can see, while planning involves an upfront cost, the benefits and savings are more compared to handling the actual crisis.
Unlike other firms, our ECGB crisis management experts stay engaged with you to help identify functions and processes critical to your business and address issues that might lead to a crisis in Dubai and across the globe.
They will design tailored operational plans to deal with any potential issues or crises.
Get in touch with us today to make sure your business is ready to withstand whatever comes next.