The Benefits of Crisis Management
A lot of businesses do not invest in crisis management. Their reasoning, behind it is they think there is almost zero chance that an ordinary business will ever suffer any of loss. Needless to say, history has often curbed that school of thought ruthlessly, many times, the latest being the coronavirus pandemic. Truth is, that business may never be hit by a serious crisis but if a crisis strikes, the business may be quashed completely, sometimes so much so that owners end up in huge financial and/or legal trouble that will haunt long after the business has shut down.
Crisis management is the process of dealing with an unfavourable situation that could seriously damage a company’s reputation, sales and growth. A crisis can involve anything from a natural disaster to a product recall to a terrorist attack.
Crisis management aims to instantly respond and minimise damage and position of the company for recovery effectively, once the current crisis has passed.
Which types of crises should you prepare for when doing business?
*Natural disasters, especially flooding, wildfires, earthquakes, and hurricanes. Basically, any natural occurrence that can jeopardize your operations either by damaging your property or disrupting your supply and/or distribution chains.
*Biological hazards such as the ongoing coronavirus pandemic.
*Accidents that emanate from human errors, e.g., accidental fires, office building collapsing due to structural faults, or hazardous material spilling and causing extensive damage to company property occupants’ health.
*Damages that are caused by human malice, e.g., arson, robbery, or terrorism.
*Tech-related losses, especially cyber-attacks and data losses.
A successful crisis plan that combats the above must be proactive. It aims to reduce the risk of a crisis happening in the first place by anticipating potential problems, such as natural disasters or product safety concerns. It also creates procedures for how the company will react if something goes wrong. Knowing exactly what to say and do if a crisis occurs is important because every second counts during a crisis.
A successful crisis management plan can bring the following benefits to the table
Minimizes the Impact of the Crisis: One of the primary benefits of having a crisis management plan is that it helps minimize the impact of the crisis on the business. By having a plan in place, key personnel can quickly respond to the crisis and take appropriate action to contain the situation. This preventive measure can stop the crisis from escalating and causing further damage to the organization.
Ensures Business Continuity: Another benefit of having a crisis management plan in place is that it ensures business continuity. By having a plan that outlines specific actions to be taken in the event of a crisis, key personnel can quickly implement those actions and keep the business running as smoothly as possible. This helps in lessening the financial impact of the crisis on the organization.
Protects the reputation: A crisis can have a significant impact on the reputation of a business. Businesses can quickly respond and take steps to protect their reputation during a crisis through a well-planned crisis management strategy. This can include communicating with stakeholders and the media, as well as taking corrective action to address the underlying issue.
Improves employee confidence: A crisis can be a stressful time for employees, particularly if they are unsure of how to respond. By having a crisis management plan in place, businesses can improve employee confidence by providing clear guidance on what to do in the event of a crisis. This can improve the overall morale of the employees and minimise stress and anxiety them.
Compliance with regulatory requirements: Many industries are subject to regulatory requirements that require businesses to have a crisis management plan in place. By having a plan that meets regulatory requirements, businesses can avoid penalties and ensure compliance with relevant laws and regulations.
To make use of the above benefits, marketers must follow a few ground rules for the best outcome. Acknowledging the problem as quickly as possible is the first rule of crisis communication. This can control the news media and can control the message and limit the damage to the brand’s reputation. It is necessary to have a plan ready because even if a crisis occurs, fixing the problem immediately may not be always possible. While it might seem easier to ignore an issue or hope it will go away, this strategy rarely works. The problem may draw more attention to itself or be picked up by the news media anyway. When that happens, brands should be ready with an action plan and a unified message.
Overall, the primary goals of crisis management in an advertising agency in Delhi or anywhere in India are to:
- Inform the general population about the emergency situation in a straightforward and confident manner.
- With meticulous fact-checking, respond as truthfully as possible.
- Public health safety information, such as a product recall, should be communicated as soon as possible.
- Email, social media, and other forms of communication can all be used to reach your target audience.
- Create a narrative that shows the organisation is operating in the best interest of the community.
- For the sake of team cohesion, adhere to any crisis management strategies in place.
- Use what you’ve learned from previous events to predict and plan for future events.
It is always better to think and have a crisis management plan ready even before the onset of a crisis.
