A crisis or disaster can be a natural disaster or a human-made one, both having a significant impact on safety and operations and causing confusion amongst management and putting time pressure on the organization. Crises deriving from natural causes include floods, earthquakes, tornados or hurricanes. Human-made disasters include political unrest, major criminal acts, terrorist attacks or wars. In essence, there are two types of crises: the ones caused by something that is out of our control, such as tsunamis and the ones caused by the weaknesses of the organization, such as industrial disasters. Crises caused by external factors are difficult to avoid, but procedures can be implemented to try to mitigate the impact of it. A mishandled crisis can have both direct and indirect economic impacts on the revenue and profit of an organization. The way a crisis is handled can lead to a negative impact on the company’s reputation. If for whatever reason, the crisis is emotional and has an impact on the core values of people, the loss of the trust between the organization, employees, customers, and partners is highly likely, and it could prove difficult to earn back.
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