Essays on Business Continuity and Crisis Management Coursework

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The paper 'Business Continuity and Crisis Management" is a great example of management coursework.   A crisis is any event that can cause harm to a firm’ s constituent, its finances, its facilities or its reputation within a short span of time (Regester and Larkin, 2008). Crisis management is the art of decision making that helps in heading off or mitigating the effects of a harmful event while the event is unfolding (Borodzicz, 2005). Thus decisions are made about the future of a business while one is under stress and lacks vital information. Prior to practical planning before a crisis happens is fundamental for an effective institutional response to mitigate such adverse situation. Difference between crisis management and risk management Crisis management refers to a process or a collection of processes which are put in place to deal with an unexpected event that threatens to harm a firm, a business, an individual/ group of people or an operation (Hiles, 2010).

A crisis usually takes place without any prior warning and thus it is essential that plans are put in place that can be implemented swiftly to either reduce the effect of the crisis in order to restore normality within a short span of time or to remedy the situation (Smith, 2005). On the other hand, risk management is a continuous process where potential threats are identified and solutions are put in place to avoid these risks (Sadgrove, 2005).

Risk management is more of proactive whereas crisis management reactive (Smith, 2005). Crisis management is very important in spite of the risk management measures in place since the crisis often has no prior warning. Risk management is said to be the basis for comprehensive business continuity and crisis management program and it determines the decisions that affect all of the other functions contained in the framework (McEntire, 2007).

Risk management takes place prior to the happening of a crisis event. Risk management requires dialogue with various stakeholders, monitoring and adjustment in light of environmental, public relations, political, social and economic changes effects on business continuity and crisis management related decisions (Blyth, 2009). Thus risk management strives to prevent the occurrence of a certain crisis. However, when such crisis takes place or any other that is unexpected, crisis management helps a firm to act in order to reduce the impact of such a crisis and restore the initial order (Burtles, 2007).

An organization crisis is said to be a low probability, high impact event that threatens the well-being of the firm and is often characterized by ambiguity of cause, effects and means of resolution in addition to the belief that swift decisions ought made (Blyth, 2009). This implies that such hazards are unlikely to be managed during risk management and hence the firm ought to be prepared to handle the unexpected through crisis management (Pitt and Goyal, 2004). It has been reported recently that crises are characterized as low probability, high consequence, overlaid with risk and uncertainty, disruptive of normal business, conducted under time pressure and potentially harmful to the reputation of the firm. Theoretical understanding of crisis management Several theories and models have been put forward to try and explain crisis management.

They include lifecycle models, chaos theory and disaster management as a model.


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