How to Create an Effective Crisis Management Plan

Jesica Johnson Mackey • July 28, 2022

By: Caroline Wille

Having a crisis management plan is crucial for the success of a business. Without a plan, sudden situations can leave teams and corporations negatively impacted by an event. Crisis management refers to dealing with events as they happen and right after, but companies need to be prepared before the crisis harms an organization, its stakeholders or the general public. When the Pandemic started in 2019, only 23% of U.S. organizations had a crisis response team in place. Taking the following steps can prepare businesses to take precautions before it is too late. Here are five steps to take:

Form a Team

A dedicated team of strong leaders is essential so that trust is built, and they can step up in times of desperate need. The entire team should undergo training and bonding activities to ensure positive results for the business. Balancing certain personalities and skills is critical in this process as they need a team with leadership, strong communication and team-building qualities.

Determine and Evaluate Threats/Risks

This next step allows businesses to see what is at stake and what they can do to prepare for a crisis. Conducting a risk assessment and Business Impact Analysis (BIA) allows them to control possible detrimental impacts before they occur. Addressing threat exposure frames the types of crises that could happen and focuses on its limitations while guiding and preparing for a fitting response.

Designate Responsibility

Determining roles ahead of time can allow the business to give an effective and timely response. The first step is finding a strong leader from the team who can manage vast amounts of responsibility before, during and after the crisis. Next, consider the specific situation and assign other roles within the team depending on their expertise and familiarity. People with good communication skills, time management, and working well under pressure will strongly impact the team and execute an effective plan.

Establish and Build a Plan

Now that a team is formed, the business has determined its threats/risks, and responsibility is designated to specific leaders, it is time to build the plan. In this plan, the team should establish internal and external communication strategies and a clear action plan for the particular crisis.

Update the Plan Frequently

Situations happen when least expected, so it is vital to revisit plans and continually updating the plan in the case of another crisis event.