The article talks of the need of crisis management in today's business scenario, and the role it can play in the proper functioning of organizations.
"Crisis Management" means managing a crisis situation efficiently. But, this definition implies only a low-level management activity. Management of crisis, however, involves the exploitation of existing resources effectively. Mostly, it reflects the actions taken after a crisis occurs. In contrast, "Crisis Leadership" is a proactive and high-level activity. It means doing everything humanly possible to prevent a crisis, even before it can happen.
Crisis management is traditionally done in most organizations. But, it is inadequate to meet the growing challenges of modern organizations and corporations in the wake of changing scenarios. History tells us of several organizations, which have been successful, but are not doing so well now, because they failed to manage their crisis in time.
Crisis handling is a challenge for business managers, as they have to be very careful about their survival. Crisis management should not, however, be difficult if there is a proper strategy in place. To manage a crisis, managers should have deep expertise in helping clients identify and reduce their exposure to risks such as product contamination, terrorist attacks, corporate fraud, kidnapping, technology failure and systems sabotage. Managers should be in touch with people from various fields, which include insurance, law, defense, arts and science, etc., so that they can design a comprehensive plan to manage any crisis and respond effectively if a crisis does occur. |
