Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Crisis Management: Pra Crisis Dr. Gregoria Arum Yudarwati 1

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Crisis Scanning 1.Issues management  This includes the identification of and the action taken to affect issues.  Lessen negative impacts of the issue 2.Risk assessment  Identify risk factors and their possibilities to become crises  More into internal factors rather than external factors 2

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Continued... 3.Reputation management Reputations are formed as stakeholders evaluate organisations based upon direct and indirect interactions. Direct interaction: organisation – stakeholders relationships Indirect interactions are mediated reports of how the organisation treats its stakeholders. 3

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Sources to be scanned 1.Issues management sources Environmental scanning Environmental scanning 2.Risk assessment sources Provide information about organisation’s weaknesses that could become crises Provide information about organisation’s weaknesses that could become crises 2.Reputation sources 4

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Information Analysis 1.Issues threat assessment Criteria for assessing issues: Likelihood: the probability of an issue gaining momentum Likelihood: the probability of an issue gaining momentum Impact: how strongly the issue can affect either profits or operations Impact: how strongly the issue can affect either profits or operations 1.Risk threat assessment Likelihood: the probability that the risk will or can become an event Likelihood: the probability that the risk will or can become an event Impact: how much the event impact the organisation Impact: how much the event impact the organisation 5

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Continued... 3.Reputation threat assessment Consists of two steps: a.To determine if there is a gap between how the organisation wants to be perceived and how it is perceived by stakeholders b.To determine the salience of the stakeholder holding th expectation gap 6

Jl. Babarsari 44 Yogyakarta 55281Telp Fax www.uajy.ac.id Criteria to evaluate the salience of stakeholders to an organisation: a.Power The ability of stakeholders to disrupt organisational operations The ability of stakeholders to disrupt organisational operations Stakeholder who control essential resources or can form coalition have strong power Stakeholder who control essential resources or can form coalition have strong power b. Legitimacy actions that are considered desirable, proper, or appropriate according to some system actions that are considered desirable, proper, or appropriate according to some system c.Willingness Stakeholder’s desire to confront the organisation Stakeholder’s desire to confront the organisation 7