We often face times when our business suffers a crisis. With the spread of coronavirus pandemic over the world, for many firms and stakeholders, such a time has come. We’ve all endured the consequences of COVID-19. But for businesses, it’s way more serious than just being isolated at home. What to do and how to manage crisis management in such stressful circumstances? Here is business guidance for survival in a crisis.
Guidance for Business Survival in a Crisis
In this article, we will discuss some techniques that will help you to handle your business in this difficult time.
What Is Business Crisis Management?
When an unforeseen situation interrupts your business’s performance, it endangers the company and the stakeholders. You need to respond promptly to find some useful ways to avoid the menaces and eliminate the crisis as soon as possible. And that’s what we call business crisis management.
It’s a method comparable to risk management; though, as Jodie Willmer, an expert in strategic planning, governance, and risk, defines the main difference between the two. In risk management, you need to “identify, assess and mitigate any activity or event that could cause harm to the business.” In contrast, crisis management is related to “responding to, managing and recovering from an unforeseen event.”
How Do Organizations Manage Crisis?
According to some business analysts, there are three types of business crisis management:
- Responsive crisis management: providing a strong crisis management program, so when the crucial time comes, the business has all the essential means to manage it. It can normally be seen at companies with influential market culture and a reliable business plan.
- Proactive crisis management: this type of process occurs when a business is suspecting the crisis to occur; it provides a management crisis strategy and executes it accordingly.
- Recovery crisis management: this type adopts a scheme where a business discovers the root of the crisis that it’s suffering and takes appropriate actions to resolve it.
These, of course, are common strategies for crisis management. Though, in an unanticipated crisis of unfavorable situations, it may not be useful to use such tactics. That’s where you need to refocus your efforts on more beneficial techniques.