Crisis events are often considered an expected side-effect of running a business, making crisis management extremely crucial. But despite their unexpected nature, crises are not something you want to be unprepared for. A crisis can happen at any time, and without a plan in place, the repercussions could be disastrous for your company.
Every organization should have a crisis management plan. It's important to take into consideration that any company, no matter how big or small, can encounter a sudden crisis. In order to be prepared for the worst-case scenario, organizations must create an emergency response plan and ensure it is properly executed in the event of a crisis situation.
The following post will outline what goes into creating a crisis management plan—be it to tackle a natural disaster or a sudden financial hit due to changing market conditions.
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1. Risk Analysis
Teams working on a crisis plan require expert qualifications and experience to have insight into potential problems exclusive to a company and its business model. If you have the right knowledge, certifications and previous experience in emergency management careers, you can easily identify and analyze potential threats regardless of the industry you're working in.
Outline the potential scenarios your organization might face. Having a more specific sense of these situations will help guide what you need to plan for and plan accordingly.
The most important thing to cover in your assessment is the broad range of possible risks. It's not enough just to be aware of natural disasters, cyberattacks and so on; you need to prepare for everything you may face or businesses similar to your have faced in the past.
2. Activation Protocol Standards
It's important to include indicators that may hint toward a creeping crisis as well as activation protocols to initiate the application of a crisis management plan. Paralysis is often the first response in an emergency, especially when relevant staff isn't around. Activation protocol standards can help dictate how quickly something should move through each level.
Define circumstances for when to activate a particular response like calling 911 or calling in the internal crisis management team to coordinate with both internal stakeholders and external relevant parties such as police and media.
3. Command Chains
A crisis management-related organization chart is a great way to keep things organized and ensure everyone knows their role. Organizational charts define hierarchy and let the entire staff and stakeholders know who has final authority. It also highlights reporting relationships between teams and team members in charge at each level of command. The inclusion of such an organizational chart supports coordination among team members and guarantees consistency regarding the flow of information and open communication.
Depending on the event's gravity, urgency, and situational analysis, your plan may need changes in the chain of command. For example, if there's one emergency at a particular site, it will activate their response team, but in cases where companies need to be responsive across different regions, they'll have regional teams to carry out specific tasks as necessary.
4. Response Plans
In order to prevent a crisis, you have to be prepared, and that means thinking of all possible responses. Therefore, it is important to consider what will happen and how your team should respond when planning for a potential threat.
Each response plan and relevant actions cater to multiple steps of the arising crisis, which makes implementation easier. This also ensures that your plan remains adaptable at any given time.
Consider all possible scenarios when designing a strategy. The best plans use an all-around approach, meaning you don't develop your strategy with one specific crisis in mind but rather anticipate potential problems and have contingencies for them all - no matter what might happen.
5. Training and Implementation
A crisis may damage your reputation, disrupt operations and harm employees. To prevent avoidable damages, you need to invest time and resources in preparation and training.
Your on-ground staff should know what steps to take, from contacting the right authorities to following relevant procedures and dealing with employees, staff and any customers and clients present on-site.
Crisis rehearsals and tabletop drills can reveal flaws in the plan and help every individual become comfortable with their role. Make sure you stay current by conducting regular training and modifying the plan based on changes happening within the organization—budget, resources, geographical location, etc.
The practice session should also include refreshers on how to use fire extinguishers, use restraint in certain settings, provide care to individuals at-risk and promote an environment of collaboration.
Final Thoughts
A crisis management plan is a key component to having an effective and successful business. You need to be prepared for any emergency that may come your way, whether it's sudden or creeping.
The first step in developing a crisis management plan is to analyze the risks. Once you have done this, it's time to establish your activation protocols and command chains.
It's important not only to create a plan but also to train staff on what they should do if there was ever an emergency - after all, no one can predict when something will happen.
