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