Please respond to class mate post with a 200 word minimum. When I think of crisis management, I think of fire exit plans. It is mandated that all companies have a working plan in the event of a fire. These plans do not include fire prevention, they are just there to let you know what you need to do in the present time and after a fire occurs. Risk management would be what is taught in order to prevent something in the future. Risk management and crisis management would work hand and hand. According to Parnell (2014), crisis management is the process of planning for and implementing the response to a wide range of negative events that could severely affect an organization. These events could be self-inflicted, such as your companies CEO getting into legal trouble that involves the company, or these can be external events such as the current pandemic. Since the future is uncertain, it is important for businesses to keep the question “What if?” in mind and put a plan in place to prevent these things from happening (risk management). In the event that risk management is not successful, this is where crisis management would come in, with knowing how to detect a crisis and knowing the steps on how to resolve the crisis. Crisis management is important because it allows a firm to have flexibility in the event of unforeseen circumstances. A company that doesn’t have good crisis management would more than likely have to go out of business if an event like this was to occur. Like I stated above, the pandemic would be considered an external event that has caused many companies, especially small businesses, to have to shut their doors for good. Many companies had to reinvent the way that they provide services and/ or products to their consumers in order to make sure the business would survive.
Parnell, J. (2014). Strategic control and crisis management. In Strategic management (pp. 326-352). SAGE Publications, Ltd, https://www-doi-org.ezproxy.lsus.edu/10.4135/9781506374598.n12
