Why is the development of a Crisis Management Team important in a corporate setting? Explain.

Running Head : Importance of Crisis Management Team

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These are the people who consider and access an organization 's vulnerability to crisis and give crisis alleviation directives . The global economic and social climate is very challenging because of many standard operational risks to organizations . Roles of such teams are

Crisis sensitivity : This team highly detects any risks likely to happen in the future . This literally saves lives , money and the organization from devastation . Companies have an increasing responsibility to their customers and shareholders

to demonstrate their own values and success through crisis management regardless of the external challenges

Preparation for the crisis : If any signs of a crisis are detected , the team applies its strategies immediately . Organizations with these teams deal with crisis quickly and at low cost because they create early preparations for unplanned events (Steve , 2005

Crisis encounter : In the event of a crisis situation , the team struggles to stop the severity of the crisis and restores the situation to normalcy . Solving starts with the most severe issues . The team therefore prevents the problem from going to the extreme end of paralyzing the organization thus keeping the problem under control (Jack , 2002

Healing function : The team ensures operational assurance during and after a crisis , and creates an optimal outcome for the company 's employees , customers and its reputation . There is an assumed trust that the company 's team will deal with crisis adversity with foresight and confidence . The team therefore ensures the recovery of the possible losses . Evaluation : This happens after the crisis . It is wise to find out what was lost or gained through the process . They therefore perform a cost benefit analysis to establish the new position of the organization . They also take this opportunity to access their efficiency in crisis management in terms of time and resources spend on saving the situation . Generally , the crisis management team plays a predominant role in creating fundamentals that strengthen the organization from possible negative impacts of crises and risks (Jack , 2002

Reference

Jack , G (2002 ) Crisis Management . London , Routledge

Steve , F (2005 ) Crisis Management . New York , Prentice Hall

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