ASIGEST ADVISOR S.r.l.

 

risk management & financial advisor

 

There is the risk you cannot afford to take, and there is the risk you cannot afford not to take.
Peter Ferdinand Drucker (economist and essayist 1909-2005)

CRISIS MANAGEMENT

GOLDEN HOUR

One hour is the time it takes for an organization to handle a crisis situation minimizing the damage and deciding its fate.
(source: J.E. Lukaszewski of New York University)

CRISIS MANAGEMENT PLAN

CRISIS MANAGEMENT is the process by which a company handles an event that risks damaging the company itself.
The study of crisis management originated with major catastrophic events: industrial and environmental.

In a company, the process of «CRISIS MANAGEMENT» involves the prior assessment of:

  • potential threats
  • the search for the best ways to avoid them
  • reducing these risks significantly.

Crisis management consists of different actions time-wise:

PRE: BEFORE IT HAPPENS:

  • detection and evaluation of threats;
  • creation of procedures;
  • simulations, etc.

DURING: PROGRAMMED MANAGEMENT:

  • after the events triggering the crisis have occurred;

POST:

  • monitoring (Incident Reporting).

Si tratta di una disciplina, nel più ampio contesto di gestione, costituita da competenze specifiche e da tecniche necessarie per identificare, valutare, capire.

CRISIS MANAGEMENT PLAN

This is a discipline, in the broader context of management, made up of specific skills and techniques necessary to identify, evaluate and understand.

BEFORE DURING POST
1. define the team members
2. define the team representative
3. define the roles of the various team members, and in particular:
• define the person in charge of drafting the procedure
• define the person responsible for external communications
• define the person responsible for managing relationships with authority
4. define the intervention context, i.e. the type of events that constitute the crisis
5. stakeholders
6. methods of internal communication amongst the team and the sharing of information
7. methods of external communication
8. method for collecting information internally and externally
9. preparation of disclosure templates
10. simulation of the crisis
11. periodic review of the crisis management procedure
12. advertise amongst “key” customers that the company has developed a crisis management plan and share actions
13. evaluate the severity of the event and decide whether to start crisis management
14. estimate the economic entity of the event triggering the crisis
15. activate the plan
16. Draw up a log with all the actions and decisions taken during the crisis
17. draft the intervention program with the list of actions to be implemented
18. division of internal tasks of the team
19. evaluate impact from a legal point of view
20. Evaluate methods of communication and types of entities with whom to communicate externally
21. evaluate contractual implications concerning:
• clients
• providers
• Insurers
21. Activate actions to protect the company around customers, suppliers, insurers, consultants, etc.
22. technical evaluation of the causes and factors triggering the crisis (RCA)
23. Monitor what happens
24. Review of the incident
25. Determination of damages and total expenses
26. Evaluation of possible cost recovery
27. Evaluation of improvement plans to be introduced
28. Any possible updates to the procedures