Page 146 - DMGT304_EVENT_MANAGEMENT

Unit 6: Risk Management

1. A threat to the organization, Notes
2. The element of surprise, and
3. A short decision time.
In contrast to risk management, which involves assessing potential threats and finding the best
ways to avoid those threats, crisis management involves dealing with threats after they have
occurred. It is a discipline within the broader context of management consisting of skills and
techniques required to identify, assess, understand, and cope with a serious situation, especially
from the moment it first occurs to the point that recovery procedures start.

Crisis management consists of:
1. Methods used to respond to both the reality and perception of crises.
2. Establishing metrics to define what scenarios constitute a crisis and should consequently
trigger the necessary response mechanisms.
3. Communication that occurs within the response phase of emergency management
scenarios.

Crisis management methods of a business or an organization are called Crisis Management
Plan.
Crisis management is occasionally referred to as incident management, although several industry
specialists such as Peter Power argue that the term crisis management is more accurate.
The credibility and reputation of organizations is heavily influenced by the perception of their
responses during crisis situations. The organization and communication involved in responding
to a crisis in a timely fashion makes for a challenge in businesses. There must be open and
consistent communication throughout the hierarchy to contribute to a successful crisis
communication process.
The related terms emergency management and business continuity management focus
respectively on the prompt but short lived “first aid” type of response (e.g. putting the fire out)
and the longer term recovery and restoration phases (e.g. moving operations to another site).

Did u know? Crisis is also a facet of risk management, although it is probably untrue to say
that Crisis Management represents a failure of Risk Management since it will never be
possible to totally mitigate the chances of catastrophes occurring.

6.6.2 Types of Crisis

During the crisis management process, it is important to identify types of crises in that different
crises necessitate the use of different crisis management strategies. Potential crises are enormous,
but crises can be clustered.

Lerbinger categorized following types of crises:
1. Natural crisis
2. Technological crises
3. Crisis of malevolence

4. Crises of organizational misdeeds

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