increase in the future, leading to more frequent crises affecting all types of organizations. As COVID-19 has graphically indicated, pandemics can also be a source of crisis, where managing the health risks generates impacts on the economy.
Of course, every crisis means events that can lead to very significant financial, economic and trade impacts on a company. Crisis management does not ensure that this does not happen, but a well-prepared company can respond adequately and in time, if needs be, thus increasing the chances of overcoming the crisis with the minimum of possible losses.
Crisis preparedness also means that a company manages the events that will lead to recognizing a crisis in time and responds to them accordingly. Without this preliminary preparation, reaction times increase and the information needed to make the right decisions is not ready. As time goes on, the room for maneuver also narrows and the possibilities for resolving the crisis diminish.
The essence of crisis management is to prepare the processes, structures and documents within the organization, so that the responsible employees will be able to devote themselves to a truly effective solution to the crisis.
For example: in the current COVID-19 crisis, there were a large number of companies that were able to apply suitable preventive measures even weeks before the state was able to do so.
How would you answer these questions?
- Can we recognize a crisis in time?
- Do we know what to do when the crisis comes?
- Does it pay to review our current crisis management process in line with current industry best practices?