Crisis Management

Crisis management is a process in which the crisis indicators are collected and evaluated and where the appropriate steps are taken and enforced to experience a minimal loss in a crisis situation. To accomplish company's goal, long before signs of an imminent crisis, the senior executives of the company must strongly support and engage in crisis management efforts. The key to crisis management for a company is to act proactively and not to be reactive, where proactive means a business is ready to face a crisis even though it is never 100 percent possible to prepare for a crisis because it is an unpredictable event. There are four phases of managing crisis: reduction, readiness, response, and recovery.