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Crisis in an Organization and Communication

What potential effects can a crisis have on an organization? Explain your answer. What are the benefits of an organization developing a proactive crisis management plan? Explain your answer.

Why is it important for an organization to communicate quickly and honestly in a crisis situation? Why is it important to integrate anticipated crisis responses in an organization's proactive PR planning? Why should an organization be concerned with both proactive and reactive crisis management?

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Potential effects of a crisis include financial losses, loss of goodwill, deterioration of corporate image, loss of customer and investor trust, etc. A crisis can really shake up a firm, its operations, its image among its numerous stakeholders and can bring a company to a standstill.

Although proactive crisis management is a must today for each and every business due to the uncertain nature of the business environment in today's world, it is especially important for companies that operate in a very uncertain or risky environment and are expected to face crisis now and then.

Proactive crisis management is forecasting potential crises and planning how how to deal with them. Potential crisis that may be forecast can run from a hacker entering your computer and stealing sensitive corporate or customer information, to ...

Solution Summary

In about 516 words, this solution mentions potential effects a crisis can have on a company, and how proactive crisis management can be used to forecast crises and plan on how to deal with them. Reactive management and the importance of reacting quickly and honestly in a crisis is also discussed.