7 Nov 2018
School
Department
Course
Professor
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
operations
○ 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, isn’t 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
○ Attack
○ Denial
○ Excuse
○ Justification
○ Ingratiation
○ Corrective action
○ Compassion
○ Apology
■ Response depends on
● Severity of the crisis
● Culpability of the organization
● Preventability of the crisis