AO2: the difference between crisis management and contingency planning
contingency planning : the development of predetermined strategies to deal with crisis should it occur
- formulating risk assessments in order to be better prepared for crises
- scenario planning, examining "what if"
- formulating management actions to minimise the negative impacts of potential crises
crisis management: the response taken by a business in the event of an actual crisis occurring
- how a business responds to a crisis, especially one that threaten survival
- dealing with actual threats and disasters a business faces
AO2: factors that affect effective crisis management
transparency : ethical obligation of businesses to be honest and to inform their stakeholders o the truth during a crisis
communication : public relation ( PR ) plays an important role in communicating with and reassuring all stakeholders. communicating corporate social responsibility is an important part of crisis management.
speed: essential to contain the crisis and to ensure it is not prolonged or worsened by causing collateral damage. it would be far less an issue if the organisation had adequate preparation and simulation through its contingency planning. business needs to act quickly before biased or untruthful version of the issue gets reported by others in the media
control : crisis can be preventable. eg: contingency planning not only helps a business to be better prepared in the event of a real lire, but to prevent fires from actually occurring
quantifiable risks : financially measurable threats that can jeopardise the survival of an organisation
AO2: advantages and disadvantages of contingency planning for a given organization or situation
advantages :
enables business to be better prepared to deal with setbacks should a crisis ever occur
effective planning such as contingency funds and emergency financial aid can help to deal with the costs of a crisis
disadvantage :
cost of dealing with a crisis can be huge
incident planned for might never happen, so planning can be a waste of time and money
Comments