2.8 Crisis Management and Contigency Planning Chapter 17

Contingency Planning VS Crisis Management  Contingency Planning Preparing the immediate steps to be taken by an organization in the event of a crisis or emergency. (BEFORE Crisis)  Crisis Management Steps taken to limit damage from a crisis by handling, containing, and resolving it. (DURING Crisis)

Steps in Contingency Planning  Identify the potential disasters  Assess the likelihood of these occurring It makes sense to plan for the most common disasters. Least likely disasters may have the greatest risk to the companies future.  Minimize the potential impact of a crisis Effective planning along can remove or minimize the damage should a crisis occur. May include publicity planning, staff training, mock incidents  Plan for continued operations Alternative accommodations, IT data backups

Benefits VS Limitations of Contingency Planning BenefitsLimitations Reassures staff, customers, and residents that safety is a priority. Costly and time consuming to plan, train, and complete practice drills. Minimizes negative impact on customers and suppliers in the event of a major disaster. Needs to be constantly updated as the range of disasters changes with time. Public relations response is likely to be speedy and appropriate. Staff training needs increase if staff turnover is high. Avoiding disasters is still better than planning for one.