Crisis Management Crisis Management Crisis management is the process by which an organization deals with a major event that

threatens to harm the organization, its stakeholders, or the general public. A crisis is anything that has the potential to significantly impact an organization & Crisis Management is the overall coordination of an organization's response to a crisis, in an effective, timely manner, with the goal of avoiding or minimizing damage to the organization's profitability, reputation, or ability to operate. Crisis management involves identifying a crisis, planning a response to the crisis and confronting and resolving the crisis. A business crisis can be anything that can negatively effect a companys reputation or bottom line. Crisis management consists of: Methods used to respond to both the reality and perception of crises. Establishing metrics to define what scenarios constitute a crisis and should consequently trigger the necessary response mechanisms. Communication that occurs within the response phase of emergency management scenarios.

Crisis management methods of a business or an organization are called Crisis Management Plan. The objectives of Crisis management are Reducing tension during the incident, Demonstrating corporate commitment and expertise Controlling the flow and accuracy of information, managing resources effectively. During the crisis management process, it is important to identify types of crises in that different crises necessitate the use of different crisis management strategies. Potential crises are enormous, but crises can be clustered. Lerbinger categorized seven types of crises; 1. Natural disaster 2. Technological crises 3. Confrontation 4. Malevolence 7. Rumors

5. Organizational Misdeeds

6. Workplace Violence

Gonzalez-Herrero and Pratt found the different phases of Crisis Management. Three phases in any Crisis Management are: the diagnosis of the impending trouble or the danger signals, choosing appropriate Turnaround Strategy, implementation of the change process and its monitoring. Hopefully, organizations have time and resources to complete a crisis management plan before they experience a crisis. Crisis management in the face of a current, real crisis includes identifying the real nature of a current crisis, intervening to minimize damage and recovering from the crisis.