Published:  02-Apr- 2007  | Product Category:  Risk Consulting | Comments: 0        

A crisis is any event, or series of events, that threatens a severe negative impact on an organization's financial results brand, reputation, or relations with employees, customers, or suppliers. Research shows that, on average, a company can expect to face a crisis every 4-5 years. Crisis triggers range from accounting irregularities and product recalls to terrorism, workplace violence and natural disasters.

A crisis management program must be flexible enough to confront all potential hazards and minimize the possibility that incidents become crises — or if they do, prevent a crisis from consuming your company's reputation and resources.

The Right Approach

Crisis readiness doesn't just happen. Organizations need plans, personnel and processes to support a comprehensive, integrated and flexible program. It should include:

• Prevention — vulnerability analysis, business impact analysis and defense strategy as well as assessments of organizational capabilities and culture;
• Preparation — establishment of crisis management team, development of an integrated crisis plan, and development/staging of various exercises addressing topics such as business continuity planning, human impact services and computer security planning;
• Response — execution of plans for the CEO and all Management including crisis communications, business continuity and the management of human impacts;
• Recovery — business recovery, financial recovery, and human impact recovery; reviews include claims advisory, insurance recovery (claims accounting/preparation) and crisis counseling.

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