Make Sure Your Business has a Crisis Management Plan 

Need Some Peace of Mind?

Lately it seems as though the word “crisis” is used quite frequently and, everywhere we turn, we learn of another one. We are currently in an economic crisis. We have experienced weather-related crises brought about by the devastating effects of hurricanes—such as Katrina, Ike and Gustav—as well as tornadoes and floods to list a few. Of course, a fire is everyone’s worst nightmare.

For some employers, crisis management planning is an inconvenient truth and a daunting task.
However unpleasant, employers must think about and plan for worst-case scenarios. Unfortunately, we have a global threat of terrorism, and we also experience workplace violence incidences. Cyber-crime, industrial accidents and takeovers also occur, which negatively impact a business and, particularly more so, if that business is ill-prepared to handle them. 

Therefore, in order to cushion the harsh realities that accompany uncertain or disastrous events, a business should develop a crisis management plan. This plan should be one that can be ‘rolled out’ in a moment’s notice.

A comprehensive plan can provide employers with great peace of mind. If your business operations are abruptly interrupted, then it’s a crisis for you. What’s worse, if your management team is unprepared to handle the fallout of an interruption, then your business can suffer additional and unnecessary consequences.

So when the unexpected occurs, sufficient planning and detailed preparations will help businesses and their management teams meet responsibilities and obligations, during and after a crisis. Not only will a plan instill confidence in the event of a disaster or unforeseen event, it will help minimize disruption and keep communications flowing because you have identified vital business processes and have given these important areas advance consideration:  

• Protection---i.e., employee, customer and vendor safety.
• Compliance---i.e., federal, state and local regulations.
• Risk management---i.e., minimal business impact and financial damage, including the potential for civil and criminal liabilities.

And most importantly, a comprehensive crisis management plan increases a company’s capabilities for recovering and resuming normal business operations after a crisis.

Generally, crisis management plans range from the simple to the complex. It’s important that an employer develop a crisis response plan which is based on the specific needs of their employees and their business. Too, some businesses need to adhere to industry regulations, so there cannot be a ‘one-size-fits-all’ type of plan. 

Now that I’ve set the stage for why businesses need crisis management plans, in a future HRTools.com Insight, I will review steps for developing and maintaining one.