Speaker 1: In this video you are going to learn crisis management. Topics I have discussed are what is crisis, different types of crisis, what is crisis management, importance of crisis management and crisis management plans. Let's start the video. Before knowing about crisis management you must know what a crisis actually is. A crisis is defined as any event or period that will lead or may lead to a sensitive and dangerous situation affecting an individual, group or all of society. These are negative changes in human or environmental events especially when they take place unexpectedly with little or no warning. Different types of crisis may arise within an organization. Technological issues. Technological, mechanical or any electrical failure such as electricity problem, software failure, problems associated with the machines, internet connection problems can lead to a crisis for an organization. Employee dissatisfaction. A crisis arises when employees do not agree with each other and conflict amongst themselves. Violence. Violence, terrorism, thefts, crimes, scandals at the workplace result in organizational crisis. Neglecting minor issues. In the beginning if you start neglecting the minor issues within the organization it can lead to a major crisis in the future. Illegal behavior. Accepting bribes, fraud, extortion, data leak, information tempering, these types of illegal behavior can cause a crisis for an organization. Financial problems. Some crises arise because of some financial problems such as failure in credentials, declares, bankruptcy, etc. Because of natural factors. Some natural factors such as cyclones, super cyclones, floods, volcanoes, droughts, heavy rain, earthquakes, etc. result in crisis within an organization. To tackle these types of situations every organization should have a crisis management framework. So what is crisis management? Crisis management is the approach of anticipating crises at the corporate level and planning how to deal with them effectively to prevent any threat to an organization. Daily newspaper headlines are loaded with the news of the companies dealing with several crises. Smaller companies are often unaware and rarely have a crisis plan in place. They believe it will never take place. But what if it appears? Before a crisis hits business owners should think about how a disaster can affect employees, consumers, suppliers, the public, and their organization's value. A crisis can affect any organization anytime, anywhere. Advanced planning is the only key to the survival of any business. By having a crisis settlement plan in the workplace a company and its stakeholders can prepare for sudden and adverse changes. Importance of crisis management. Number one. It helps you determine what a crisis is and who should manage it if it appears. A crisis management plan benefits not only you with that but also shapes your communications plan, makes protocols that determine who should be contacted when and why, and which problems can wait and which might lead to senior decision makers being called in urgently. The plan decides who will manage or call the shots during the crisis. Two. Helps to keep everyone safe. There is no way you will avoid the bitter effects of the crises without a foolproof plan B. And when the effects are reduced, your employees, clients, and the public will have a better opportunity at being safe. Sometimes when an emergency arises, such as a bomb scare, terrorist attack, robbery, etc., a well-defined emergency response strategy will help you make every second count. Three. Minimize damage in both revenue and reputation. A crisis management plan makes it easy to identify and prevent a crisis before it takes place or before it gets out of hand that affects both revenue and reputation. Four. Legal requirement. The government authorizes crisis management planning in most countries. You could risk heavy penalties if you operate with no crisis management plan. Five. Helps to feel the early signs of a crisis. Crisis management helps the managers to understand the early symptoms of a crisis, notify the employees against the impacts, and take necessary precautions for the prevention. Now come to crisis management plans. To tackle any threatening crisis, a proper method and plan must be used for effective crisis management. Crisis management planning focuses mainly on building infrastructures that help the company reverse potential risks and how to respond to crises should they arise. The following steps are involved in building a crisis management plan. Step 1. Identify your crisis leadership team. Before you step into crisis management planning, choose a team of leaders to cooperate with during the crisis planning process. Your team should consist of people who can take action during a crisis. Put this team together at the very initial stage of crisis management planning so everyone knows the ins and outs of your crisis strategy. Step 2. Assess risk. To start the planning process, have a deliberate session to evaluate various risks your company may face. Use a risk register to determine and analyze the possibility of risks occurring. A risk register can reduce progress delays and prepare for possible setbacks. It can also help you anticipate which risks are most likely to take place, so you can plan a response to these risks. Step 3. Determine the business impact. Once you've spotted the high probability risks that could affect your company, figure out the business impact of these risks with the help of your crisis leadership team. Each risk can cause specific results, so it's necessary to analyze them individually. The potential business impacts may include customer attrition, ruined reputation, delayed sales, lost income, or administrative fines. Step 4. Plan the response. After that, take each risk you've spotted and decide what actions your team would need to take to counter the threat if it happens. For example, if you work in software and your company encounters a cyber attack, you may need someone to protect the network, someone to deliver the news to your customers, and another person to deal with damage assessment. Step 5. Solidify the plan. Once you've verbally made an understanding of the threats your company may deal with the business impact, and how to react, then solidify your plan. A crisis management plan should consist of key items, such as an activation protocol and emergency contacts. You also need to coordinate with key stakeholders, so that everyone knows what to do and when. Step 6. Review and revise. Once your crisis plan is accomplished, check the final product to secure there are no gaps. Reassess your crisis management plan and revise it at least once a year because possible risks can vary with time. If you want to read in details and download the PDF, go through the link in the description. If you find the video helpful, give us a like, share the video, and don't forget to subscribe to Education Leaves.