Crisis Management

Crisis Management

Definition of a Crisis

A crisis can be defined as any unplanned event, occurence or sequence of events that has a specific undesirable consequence. Examples of a crisis include:

  1. Natural disasters
  2. Financial manipulation
  3. Societal disruption
  4. Pollution and stringent regulations
  5. Terroism and random violence (Shooting in McDonald's California drive-in affected business.)
  6. Rumors and allegations (Procter & Gamble faced recurring rumors that their logo was somehow connected to the devil.)

Definitions of Crisis Management
  1. The preparation and application of strategies and tactics that can prevent or modify the impact of major events on the company or organiztion. It is the way of thinking and acting when everything "hits the fan." At worst, crisis management can be the life-or-death difference for a product, career, or company. (Caywood, 1997)

  2. Crisis Management is "you bet your company," and at warp speed. It is the level of pressure and stress that makes a crisis either a real high for all those involved or a nightmare. (Caywood, 1997)
  3. A plan of action to be implemented quickly once a pontentially damaging situation occurs.