Crisis Planning for Businesses
People do not want to contemplate a crisis striking their business, but having a plan of action in the event of a crisis is important. Such a plan lessens the impact of the crisis.
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Purpose
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The purpose of crisis planning is to allow the business to resume normal operations as quickly as possible after an emergency situation. The crisis might be brought on by either a natural disaster, a series of illnesses striking key personnel in the business or even an electronic crisis which might shut down operations.
Types
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There are several types of crises that can strike a business. Some of them are natural, such as earthquakes, hurricanes and storms, while others can be man-made disasters, such as theft or the loss of key personnel. In addition, a crisis might strike at something intangible, such as the reputation of the business.
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Planning
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"Mock" scenarios provide a safe way to find a flaw in a plan rather than to discover the flaw in a real-world situation. Specific crisis plans should have specific plans of action. For example, a financial crisis needs to be dealt with differently than an earthquake.
Financial Crisis
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One crisis that is hard to plan for is a financial crisis striking an economy in general. In such a crisis, spending tends to go way down and personal savings increase. Planning for a financial crisis entails setting up an emergency money fund. It also consists of keeping current with all accounts, both with finances owed and finances due.
Test
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Test crisis plans regularly, especially if the business has high employee turnovers. Include such areas as checking that all contact telephone numbers are current and that all emergency gear works.
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References
- Photo Credit Economic crisis image by Denis Ivatin from Fotolia.com
