Companies, small, medium, or large, and startups, have few things in common – they can all find themselves, during any point in time, getting knocked by a crisis. The problem or crisis may strike during any juncture, and it may occur in any form – be it financial considerations, product-association, public relations motivated, human resource driven, internal affairs, obliged by the market, or legally forced.
According to Murphy’s Law, “If anything can go wrong, it will." Consequently, in spite of taking all of the essential steps and strategies for management, a crisis may catch an organization completely unprepared and unconscious. Thus, crisis management becomes a very imperative management tool to handle, or solve a crucial situation.
Crisis management includes a business plan of action which is rapidly implemented as a negative occurrence arises.
It defines a business crisis as an issue which:
1) Disrupts the way a company conducts business, or
2) Attracts substantial public examination, scrutiny or news media coverage. Usually, these crises hold the ability to propel a negative, legal, financial, governmental, or political repercussion on the business, particularly if the business isn’t handled in an effective and prompt manner.’
Negative publicity, which ensues from the crisis, includes an extra tricky portion to deal with. Just as it’s critical to take efficient and instantaneous measures to solve the issue, it’s just as significant and proliferative to efficiently deal with media attention and questions from dealers, creditors, and customers.