Why Crisis Management is vital for all businesses

Despite the common phrase “failing to plan is planning to fail”, many companies still do not plan for a crisis. Although it is not possible to plan for every possible event, businesses should still have an overall plan for crisis and develop this as part of their culture. Whether it’s staff illness, a fire, power outages, floods or a pandemic, plans need to be put in place. Here we discuss why crisis management is vital for all businesses.

Recent events due to the COVID 19 pandemic have made businesses startlingly aware that crisis management is important. From moving staff from the office to remote working, it is clear to see that some businesses were more prepared than others and it was these companies that were more prepared that could deal with the transition and upheaval better.

Allows you to be prepared 

Businesses that had already moved across to cloud computing solutions found the move from office-based work to remote working from home relatively straightforward compared to those companies that rely on internal servers. Although crises cannot be foreseen, by ensuring the company is up to date with technology and streamlining their processes just in case, when a crisis does occur,  the impact will be less devastating.  If companies are still not on the cloud, it is important that they seriously think about investing in cloud solutions to help them in the future.

The use of Virtual Desktop Infrastructure (VDI) is also important. VDI involves hosting desktops on a central server within a data centre. This allows users to remotely access this at home or on the go rather than being restricted to the office.

Ensure all members of staff have the equipment they need to carry out their job at home if they need to.  Also train all staff about phishing scams and online security whilst working from home. As part of crisis management, there should be a security culture adopted by companies which repeat the importance to all staff about online security and stress the responsibility that each individual has to keep company data safe. Always ensure you are using a reputable supplier before allowing them access to any of your data. You need to know your data is in safe hands and is securely backed up.

Helps you assign responsibility  

Having a crisis management plan can help stop a bad situation turning into a devastating one. Outlining communication plans and creating protocols helps assign responsibility. Having it all in an official plan means there is no ambiguity. Everyone knows who needs to be contacted, what information they need and who is in charge of the situation were it ever to arise.  This can help save precious time.

Helps avoid insurance issues 

Businesses that are not planning for a worst-case scenario can also see themselves running into potential trouble with their insurance. If they are not prepared and a crisis happens, they may discover a gap in their cover. Ensure you have the correct cover in case of emergencies. For example, do you have cybersecurity cover that includes staff working remotely? Do you have business interruption insurance? There is a lot to consider but crisis management is an ongoing project which will constantly need updating and working on.

Ensures you have sufficient cover 

Although the challenges from remote working can be great, it is not the only ramification of a crisis such as the pandemic. Companies also need to have a contingency plan that explains what happens if a member of staff can no longer do their job due to illness or other personal circumstances. Without having a suitably qualified person to take on the work, their absence could have a huge impact. All firms should consider succession planning as part of their overall crisis management. Doing so can ensure day to day operations are not severely affected.

Helps avoid downtime 

When a crisis occurs, it usually can lead to downtime. Even if it is only for a few hours, the results can adversely affect the company and its revenue. Therefore, all measures possible should be put in place to avoid any downtime at all. A thorough crisis management plan can allow companies to react quickly. The quicker a company reacts and puts their emergency plans in place, the less likely downtime is to occur at all.

Helps keep people safe  

Arguably the most important reason to have crisis management is to ensure you are as prepared as possible and therefore in the best situation to keep your employees, clients, customers and the public safe. Without official planning and forward-thinking, the results can be catastrophic.

Although the pandemic is an extreme example, it has taught us that all businesses are at risk of facing a crisis situation and the importance of having a crisis management plan. Firms must be ready for a variety of risks and no business can afford to be complacent. Your company’s reaction and response to these situations have a direct impact on your brand and therefore it is important you face them head-on with a comprehensive plan.  Having one does take time to create but once in place, the company will be in a great position to react quickly when a crisis does strike.