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Types of crisis:
Natural Disaster:
Natural crises, typically natural disasters considered as 'acts of God,' are such environmental phenomena as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tidal waves, storms, and droughts that threaten life, property, and the environment itself.
Industrial Accident:
Construction collapse, Fire, and Toxic release.
Technological crises:
Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage, the crisis is categorized as mega damage. Samples include software failures, industrial accidents, and oil spills.
Product or Service failure:
Communication failure, System failure, Machine failure.
Business and management:
Hostile takeover, sudden strike by workforce or key supplier, Major customer withdraws its support, competitor's launches new product, Sudden shortfall in demand.
Examples of crisis management:
Reliance Power IPO.
Cadbury India in the year-2004.
Pepsi.
Bhopal disaster.
Importance of Crisis Management:
Crisis management is an essential component of the public relations profession and when in practice, must be used as comprehensive and meticulous as possible.
The benefits of good crisis management can literally save lives, save money and save an organization from devastation.
Any organization that isn't prepared for a crisis will be constantly at risk.
Successful Crisis Management:
Reliance Power IPO.
Cadbury India in the year-2004.
Pepsi.
Unsuccessful Crisis Management:
Bhopal
Ford and Firestone Tire and Rubber Company
Exxon
How to make successful Crisis Management:
Identify the problem
What is the crisis? Define it. Not what caused it or who is to blame but rather what it is in clear terms. This can also be referred to as the problem statement.
Create a team
Now that the crisis is defined, what areas does it touch? Assemble a team with the owners of the subject matter experts in each of those areas. For a business this generally means: executive management with a representative, marketing/product management, operations, legal, human resources, information technology, finance, PR or media relations sales and research & development. If any of these functions are not necessary, do not include them in the team just to fill a seat. For other organizations such as non-profits it may include: executive leadership, development, IT, member relations, finance, PR or media relations, human resources and marketing.
Set up a command center.
Find a place where all the members of the team can meet and updates on the cr
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