A company must develop a plan that begins with a corporate statement. The statement should outline the company's crisis management approach. All actions should have a decision base. The organizations ethics and philosophies should delineate what the company plans to protect. The company should try to look at all events that could create a potential crisis for the company. The organization should consider all twists, details and turns of events. All decisions should be made in advance so that the company may act quickly.
Starting With an Approach
The organization should use a simple experiment to consider what is most likely to happen. If more than one percent of the organization's stock price is affected, how much will it affect stockholders? Most companies suffer a 5 to 50 percent loss of stock price.
1.) Develop a corporate statement outlining the company's crisis management plan. This plan will guide all behavior and decisions for all corporate actions.
2.) The statement should summarize all of the organizations philosophies, ethics and plans to protect.
3.) The organization should list the most probable events to affect them. List all twists, turns and details that could limit the organizations ability to function during the crisis.