Crisis can be better managed by planning for it in advance. Efficiently managing and communicating a crisis situation can help companies in reaping profits even after the crisis.

Each and every organization will have to face crisis at some point in time. But if an organization ignores the crisis, or is unprepared to manage the problem, it can cost a great deal not only to the reputation of the company but also to its fiscal health. According to distinguished psychologist Tomazo Shibutani, crisis is "a moment requiring some other kind of adaptation". Another psychologist Erik Erikson interprets crisis as a "turning point, a crucial period of increased vulnerability and growing potential".

Crisis can strike any company at a time when it is least expecting it. It does not discriminate based on its size and can occur in various forms such as strikes, lockouts, lay-offs, product recalls, allegations of misconduct, etc. Though the nature of this type of crisis may seem to be very minute in nature, it could cost heavily both in terms of reputation and financial health of the company.

Fortunately, accidents occur very rarely, but these may point to the unfortunate fact that very few corporates are fully equipped to deal with the crisis that develops in the wake of an accident. Research has proved that though 75-85% of CEOs acknowledge the probability for a crisis to occur; and only 8-10% of CEOs identify the potential crisis areas and develop a plan to deal with the problem. It is shocking to know that none of these people have a prior crisis communication plan to communicate the occurrence of the crisis to the employees and the general public.

Effective Executive Magazine, Crisis Management, Corporate Sectors, Crisis-Planning Methods, Crisis Vulnerability Audit, Crisis Planning, Decision Making Process, Post-mortem Meetings, Corporate Crisis, Media Communications, Crisis Preparedness.