Crisis Management

A crisis is an act that can occur anytime, simply because they are – mostly – completely beyond the control of the people they affect. While the ability to control the appearance of a crisis isn’t possible, the ability to handle it correctly is, which is where the role of PR comes to the fore and becomes crucial in creating a positive (or at least less negative) outcome.

It is also possible to prepare for crises by having set out beforehand potential risks, and methods with which to handle these risks in case they arise as crises. Despite the best-laid out plans however, the unexpected can always develop, and so flexibility and adaptability are key in preparing for a crisis.

Crises are different from other problems that companies may face because a crisis by its very nature is an unpredictable, dramatic situation that can pose a serious threat to the company and its performance. Crises by their very nature are often very attractive to the media, and media coverage of a crisis often exacerbates the situation, which means that companies usually only have a very small timeframe in which they can respond to a crisis before it spirals out of control. It is this combination of unpredictability, spectacle and timeframe that makes a crisis so unique.

Different things that can be categorized as a crisis include rumors that threaten the image or even the existence of a company, deception or misconduct on the part of the company which when discovered leads to a crisis and even unexpected changes in the environment in which the company operates.

Natural disasters, for example an earthquake, can destroy a real estate company’s properties; while the trial of a company’s CEO can wreck an entire company’s stock market performance. How a company reacts to these situations can have drastic, long-term effects, and can many times be the pivot on which the company’s very existence balances.

One of the key elements when dealing with a crisis is to act quickly. Time is short when it comes to such situations and the longer it takes for a response the worse the situation becomes. It’s also very important to communicate honestly about the reality of the situation. Trying to hide the facts will simply result in the crisis becoming worse, so companies should always be truthful – in worst case scenarios, rumors and untruths escalate and feed off themselves until they reach a stage where it is simply impossible to rescue any sort of positive outcome, and PR is relegated to damage control.

A quick and honest response helps establish and maintain trust with the public, and when communicating during a crisis the perceptions and opinions of the public should be taken into account. After overcoming a crisis, it’s always important to take measures to avoid a similar situation from occurring again.

The credibility of an organization is to a large extent dependent on the public’s perception of how they acted during a crisis. No company wants to lose all it has worked for as a result of a crisis that was mishandled; this is why professional and strategic crisis management methods should be used whenever a crisis occurs and more importantly, before it happens.