A Crisis Primer

Definitions
Crisis As Opportunity
Why Plan For a Crisis?

Definitions

Crisis: Any natural or human-caused event, whether accidental or intentional, that runs the risk of:

• escalating in intensity
• adversely impacting stake holder value or the organization's financial position
• causing harm to people or damage to property or the environment
• falling under close media or government scrutiny
• interfering with normal operations and wasting time and/or financial resources
• adversely affecting employee morale, OR
• jeopardizing the organization's reputation, products, or officers, and thus its future

Critical Incident: An unanticipated occurrence that causes destruction, loss, or distress to an organization. Also called "disaster" or "business interruption."

Crisis Management: Intervention and coordination by individuals or teams before, during and after an event to resolve the crisis, minimize loss, and otherwise protect the organization. Often done through development of a Crisis Management or Business Continuity Plan.

Crisis As Opportunity

In the Chinese language "crisis" is characterized by two symbols, one depicting "danger" and the other depicting "opportunity." When we are "in crisis," we are at a crucial point. By responding appropriately, we turn the situation around into an opportunity. But if we respond inappropriately, the situation worsens and becomes more dangerous.

Crises come in a multitude of forms and intensities: Acts of Nature, such as a crippling winter storm or a deadly tornado; unintentional accidents, such as the 2005 Hurricane Katrina or the 2003 east coast blackout and intentional devious acts, like employee sabotage of a computer network, workplace violence, and horrific terrorism akin to 9/11/2001. Sadly, in today's world there has been a substantial increase in the latter.

Why Plan For a Crisis?

Here are a few persuasive reasons to consider.

• 43% of businesses that suffer a disaster NEVER reopen their doors
• Your customers rely on you - and so do your employees
• You don't have money to burn. Good crisis planning results in:
  • Reduced lost time
  • Reduced lost productivity
  • Reduced recovery costs
  • Lower insurance costs
• It's your fiscal responsibility
• You want to avoid litigation

According to the American Red Cross, for every dollar you spend on planning, you save two dollars during recovery.