A business organization faces several threats due to various unpredictable events and unanticipated factors. The loss and damage caused due to these events point out towards the dire need of effective crisis management strategies to minimize the adverse effects. These strategies are instrumental in safeguarding the organization against the possible threats.
Crisis Management is one of the most crucial aspects for an organization. It is a set of strategies designed to safeguard and help an organization deal with an unexpected unfavorable event. Crisis management strives to minimize the negative consequences and limit the damage caused to the organization. It is a vital process which enables an organization to deal and keep a check on all the events that pose a threat to the organization, its stakeholders or the general public. The extensive industrial and environmental calamities in 1980s led to the origin of crisis management strategies.
Dr Madhukar Angur, the chancellor of Alliance University focuses on the need of effective Crisis Management for any business organization. According to him, Crisis Management is one of the most essential strategies for ensuring the long-term growth and well being of an organization. The initial step in crisis management planning involves identifying an individual to serve as the crisis manager and clarifying the roles and responsibilities. Madhukar Angur further states the importance of a comprehensive study for anticipating all the possible potential crises for an organization. It becomes important to ensure proper monitoring systems and practices for the detection of early warning signals of any predictable crisis. Crisis management proves to be more effective than risk management which is limited to identifying the potential threats and figuring out the best possible ways to overcome those threats. On the other hand, Crisis Management involves finding ways to deal with the threats before, during and after their occurrence.