What is crisis management? – Definition
Crisis management refers to measures taken to manage crises. The term originally came from the field of politics, where it was used several times by former US President Kennedy in relation to the Cuban Missile Crisis in 1962.
Since the 1970s, the term has also been used in business administration. Generally speaking, crisis management is considered a special form of leadership in dealing with processes that could endanger a company. More specifically, crisis management is limited to coping with an acute business crisis.
Crisis management not only involves action during problematic events, but also includes preparation and post-crisis evaluation as important phases of crisis management.
Frequently asked questions and answers
The main task of crisis management is to identify threatening situations early on to avoid a crisis. Once the crisis occurs, crisis communication is essential. In addition, measures must be defined to control the crisis and minimise risks.
In general, the tasks of crisis management begin even before a crisis occurs. The aim is to identify weaknesses that could lead to a crisis. Warning signals for emergencies must also be determined and emergency response options designed. Planning and organisation are essential for crisis prevention.
The crisis manager is the leader in crisis management. They are the main actor in avoiding a crisis and must quickly get the situation under control if a crisis does occur. Their tasks include creating a crisis plan and leading the crisis team. This team consists of a team of leading employees and experts with specific knowledge.
Good crisis management is characterised above all by fast response times and correct planning. In a crisis situation, action must be taken. In such situations, all those involved are strongly uncertain and people quickly panic. The crisis team must make acute decisions and build trust. Only then can crisis situations be dealt with effectively.
Crisis management includes the entire system for preparing for and avoiding a crisis. This system consists of several aspects. Measures must be planned, carried out, evaluated, and investigated. The focus is on preventing serious consequences and damages.
To ensure coordination and control during crises, taking leadership responsibility is also important. Organisations or companies always need a crisis manager who navigates all participants through the process.
The tasks of crisis management are not limited to acting during a crisis. Prevention is especially important in order to prevent problems. Crisis prevention may cost personnel and time, but it is of great importance in crisis management. As part of crisis prevention, essential measures are taken to prevent major damaging events.
Crises usually occur unexpectedly and can cause significant damage. However, their impact can vary greatly. Good crisis management can make a difference in an emergency.
Good crisis management is important to ensure safety in an organisation or company. Those who are well prepared for crises will have to suffer less under them.
Crisis management helps to understand the causes of a crisis and develop appropriate strategies for preventing or coping with a crisis. In addition, a good team can detect signs of a potential crisis early on. This allows all participants to be warned and the crisis to be prevented in the best case.
Especially in companies, crisis management is important to prepare employees. This way, all participants can face the crisis with courage and determination in an emergency. Everyone knows what to do and there is a sense of security in the workplace.
Sources
- Krisenmanagement. Bundesministerium des Innern und für Heimat:
https://www.bmi.bund.de/DE/themen/bevoelkerungsschutz/krisenmanagement/krisenmanagement-node.html
- Gabler Wirtschaftslexikon. Krisenmanagement Definition: Was ist “Krisenmanagement”? Springer Gabler | Springer Fachmedien Wiesbaden GmbH:
https://wirtschaftslexikon.gabler.de/definition/krisenmanagement-37353