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What Is Crisis Management And What Are Its Common Types?}

  • Posted on December 27, 2017 at 2:10 am

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What is Crisis management and what are its common types?

by

Clara Ross

Every day there are ups and downs in any business. Sometimes organizations due to unpredictable situations come into certain crisis and have to face real problem. Crisis management is a new discovery by the business experts and is a useful tool. Due to crisis management practices organizations are able to forecast and identify the upcoming uncertain situations. It also helps them to identify the nature and cause of the crisis which helps the management to take steps in advance to handle any type of crisis.

Over the years a lot of crisis management techniques have come up on the scene which have proved to be useful for the organizations. In any business there are three common types of crisis.

Financial crisis

Financial crisis means a certain situation in which the organization faces shortage of finances. Such crisis occurs when the organizations do not forecast the future financial needs or are unable to pay off their liabilities. There a major role of macro economical factors that lead an organization to face such crisis therefore the experts in the organization now try to keep an eye on the financial market of the economy so that they can take preventive steps to keep their business away from the financial crisis. The organizations which do poor financial planning have to face financial crisis. Financial crisis are considered the worst because they cause an organization to get bankrupt or get liquidated. Financial crisis can only be handled by effective financial planning, increases cash flow and keeping an over view of the economy and financial market.

Public relations crisis

Public relation crisis generally occur when something negative happens against you business or the whole sector to which your business is related. The image of a business in front of the public is really important. Any factor that causes the image of the business or product to go negative for the public will be bad for the success of the organization. Every business now is worried about its reputation among the people because it has been proved that public relation crisis lead a business towards other crisis like financial crisis. It is very important for businesses to develop a contingency plan to handle any kind of public relation crisis. Most of the PR crisis occurs due to improper marketing and advertising. Therefore, companies now do a lot of research before presenting any ad to the customers.

Strategic crisis

The world is moving too fast now. Every day we come across something new. Same is the case with the business world. New ways of doing business come up every day which is needed to be adopted. Strategic crisis occurs when certain modes of doing business change or something new comes up on the scene. Old strategies are needed to be replaced by the new ones. Those who fail to adopt the new strategies have to face failure in the business.

Natural disaster is also called as crisis by some as any natural incident like earthquake and flood causes a business to suffer. Now almost every business organization understands the importance of crisis management and they take steps in advance and develop contingency and quick recovery plans to handle and over come any kind of crisis.

Clara Ross is the writer for

Dropshippers & Dropshipping Blog

,

Best mobiles & Mobile Phones Blog

and

Make Online Money Blog

. The author has got more than a decade of experience in the real estate, marketing, and wholesale industries and has been writing articles in industry related magazines, websites and blogs.

Article Source:

eArticlesOnline.com

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