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A crisis results in negative consequences or poses a threat or danger to your organization. Various types of crises, like financial issues or workplace violence, create negative public perceptions and press around a business when they happen, even if the business is not to blame. Nearly all businesses will have to face crises at one point or another, and public relations (PR) teams can help leaders manage both internal and external communications throughout the mitigation process.
What Does it Mean to Manage a Crisis?
Crisis management is the process an organization goes through to deal with a disruptive or unexpected incident that threatens to harm the organization or its stakeholders. Experts suggest that businesses prepare in advance by calculating risks and considering all possible crisis scenarios well before they can happen. This is because when a crisis occurs, it is essential to make rapid decisions; the media will not wait for a response, so businesses risk missing the opportunity to control their narrative if they are unprepared.
Type of Crises
Multiple types of crises can arise in the business sphere. The following are some of the most common varieties.
1. Reputational Crisis
A crisis regarding your company’s reputation can have a detrimental effect on your sales and result in a loss of present and potential clients. You may also lose the trust of investors, shareholders, vendors, and employees. These types of crises typically occur when an organization has been proven to be lying or doing shady, previously undisclosed business practices.
2. Financial Crisis
A financial crisis can refer to a wide range of scenarios in which certain financial assets unexpectedly lose a significant portion of their nominal value. Financial problems are usually caused by external market elements such as inflation rates and recessions, as well as poor internal business decisions and investments. They may also lead to layoffs.
3. Organizational Crisis
Organizational crises might be characterized as situations in which a firm has significantly harmed its customers or employees. Instead of cultivating connections that are advantageous to both parties, companies may take advantage of their clients or staff to further their own interests. This type of crisis directly impacts the productivity and the trust of current and potential employees, which affects the quality of your product or services.
Crisis Management Techniques
1. Identify and Assess Your Risks
When evaluating risks, two things should be considered. One is the likelihood of its occurrence, and the other is the potential impact of the risk. Sit down with your Chief Operations Officer, CEO, and other high-level executives and discuss all avenues where risk might occur, from hiring and firing practices to vendor relationships. Make sure you carefully record each potential risk factor and explore them thoroughly. You’ll also want to make a visual map of these risk factors to plan for each possibility in the next step.
2. Scenario Planning
Scenario planning has made it easier for decision-makers to scope several possible crisis outcomes. Businesses can be proactive rather than merely reactive if they visualize the possibilities of every risk, then consider how they might resolve them. An “if and then” analysis will help you in crisis management.
First, you’ll want to outline who from your team will assist in the crisis management for each scenario. This may change depending on which parts of your business would be involved. Then, you’ll want to create guidelines and guardrails for responding to media, customers, board members, and other stakeholders. You may even consider pre-drafting statements and responses to help guide your team in the moment. The more advance work you can do in this realm, the better. A comprehensive crisis plan will be binder-length, so don’t be afraid to go in-depth.
3. Resilience Is Key
Toughness is the ability to endure or quickly recover from adversity. It is also called resiliency. A business’s ability to endure hardship and emerge stronger on the other side can make or break it in times of crisis. Resilient brands must draw on their capabilities and support networks to find creative solutions to difficult problems.
4. Tap Your Extensive PR Network
During a crisis, the primary objective of a PR department should be to keep all parties informed about the present situation, prospective hazards, and actions that have been planned. A well-designed crisis plan should include the initial message that will be shared with stakeholders. Public relations is essential during a crisis because it helps craft messages disseminated to different audiences. When you have a good PR network, you can work with friendly reporters and acquaintances to quickly share statements and good news unrelated to the crisis.
Get Started with Proactive Crisis Management Today
There’s no such thing as being too prepared for a crisis. Be thorough in your risk analysis, statement drafting, and networking. Remember to be empathetic, authentic, and honest as you work to resolve a crisis at hand or as you prepare proactively.
