Crisis Management
To manage a crisis one first must understand the following: - Answer- It can occur
abruptly
It cannot always be anticipated
Crisis - Answer- We recall the 2007 public relations disaster of Jet Blue, where they
trapped their passengers in a plane on the runway for over 11 hours; how a
company manages problems and overcomes crises can make the difference
between a successful and a bankrupt company.
Crisis - Answer- For this segment, you will hear what constitutes the definition of a
business crisis, the management of crisis and Steven Fink's 'Three-Stage Model' in
crisis management.
Crisis: Definition - Answer- Crisis defined is a critical event or point of decision which,
if not handled in an appropriate and timely manner (or if not handled at all), may turn
into a disaster or catastrophe.
Crisis
Can create three related threats: - Answer- Public safety,
Financial loss, and
Reputation loss
Crisis- Can create three related threats (1& 2) - Answer- 1. Public safety - Some
crises, such as industrial accidents and product harm, can result in injuries and even
loss of lives.
2. Financial loss - Crises can create financial loss by disrupting operations.
Crisis- Can create three related threats (3.) - Answer- 3. Reputation loss - According
to Dilenschneider (2000) all crises threatens to tarnish an organization's reputation.
A crisis reflects poorly on an organization and will damage a reputation to some
degree
Crisis Management
Defined: - Answer- Is a process designed to prevent or lessen the damage a crisis
can inflict on an organization and its stakeholders.
Crisis management can be divided into three phases:
Crisis Management
Three phases - Answer- As a process, crisis management is not just one thing.
(1) pre-crisis
(2) crisis response, and
(3) post-crisis.
To manage a crisis one first must understand the following: - Answer- It can occur
abruptly
It cannot always be anticipated
Crisis - Answer- We recall the 2007 public relations disaster of Jet Blue, where they
trapped their passengers in a plane on the runway for over 11 hours; how a
company manages problems and overcomes crises can make the difference
between a successful and a bankrupt company.
Crisis - Answer- For this segment, you will hear what constitutes the definition of a
business crisis, the management of crisis and Steven Fink's 'Three-Stage Model' in
crisis management.
Crisis: Definition - Answer- Crisis defined is a critical event or point of decision which,
if not handled in an appropriate and timely manner (or if not handled at all), may turn
into a disaster or catastrophe.
Crisis
Can create three related threats: - Answer- Public safety,
Financial loss, and
Reputation loss
Crisis- Can create three related threats (1& 2) - Answer- 1. Public safety - Some
crises, such as industrial accidents and product harm, can result in injuries and even
loss of lives.
2. Financial loss - Crises can create financial loss by disrupting operations.
Crisis- Can create three related threats (3.) - Answer- 3. Reputation loss - According
to Dilenschneider (2000) all crises threatens to tarnish an organization's reputation.
A crisis reflects poorly on an organization and will damage a reputation to some
degree
Crisis Management
Defined: - Answer- Is a process designed to prevent or lessen the damage a crisis
can inflict on an organization and its stakeholders.
Crisis management can be divided into three phases:
Crisis Management
Three phases - Answer- As a process, crisis management is not just one thing.
(1) pre-crisis
(2) crisis response, and
(3) post-crisis.
