A potential crisis can have a domino-effect of challenges, which can impact your entire supply chain as well as stakeholders outside your organisation.
A retailer’s production could be halted if a supplier in its supply chain is affected by a disruption. The retailer’s ability to meet customer demand would be compromised. This would impact customer satisfaction as well as its financial performance. This example shows how the impact of a crisis can harm a brand’s image, as well as its client and stakeholder relationships.
A lack of a crisis plan can also decrease the trust that employees have in their management. Imagine that a law firm is faced with the unfortunate event of a data breach involving highly sensitive client information. The company does not have a crisis team. Employees are unsure who to contact in a crisis situation once the cyberattack has been discovered.
It is important to have a clear command structure for crisis communications. This will save time in the event of a crisis. For help from Interim Management during a crisis, visit https://iim.org.uk
A structured crisis management plan is essential during a crisis. It highlights the importance of having a strong PR and external communication strategy. Many businesses use specialised crisis-management software to achieve a holistic, data-driven approach. This highlights the importance of coordinated and timely communication during a crisis. The longer it takes to manage an emergency, the more risk there is for company stakeholders who may have sensitive data compromised. A crisis management plan is essential to guide your leadership during a time of crisis.
