APR 271 Lecture 10: 10_15_2018 Lecture

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10/15/2018 Lecture
Crisis Management
Crisis: a significant business disruption that sparks significant media coverage (or social
media chatter) resulting in public scrutiny that affects an organization’s normal
Major, sudden and unpredicted event
Crisis management: process by which an organization plans for, deals with and tried to
overcome out-of-control issues
Types of crises (V=Violent, NV=Nonviolent)
Disaster (V, NV)
Accident (V, NV)
Crime (V, NV)
ethical/moral failing (NV)
Mismanagement (NV)
Opposition (V, NV)
The Institute for Crisis Management reported in 2015 that most crises are caused by
management decisions
The statistic demonstrates why crisis management is so critical in any organization
Sudden crisis: disruption of business with no warning; likely to get negative attention by
media and public
Smoldering crisi: a business problem that is slow to develop, isnt recognized right away
and has potential to create negative attention
6 principles for crisis communication:
Principle of existing relationships
Principle of quick response
Principle of full disclosure
Principle of one voice
Principle of media-as-ally
Principle of recovery
Response strategies in crisis
Corrective action
Response depends on
Severity of the crisis
Culpability of the organization
Preventability of the crisis
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