Small Businesses

What to Include in Your Crisis Management Plan

  • 5 min Read
  • January 7, 2021

Author

Escalon

Table of Contents

Is your business prepared respond to a crisis? No matter your company’s size, all organizations need to develop a well-rounded and effective crisis management plan (CMP) to deal with a threat or potential crisis.

A crisis management plan is a strategic document that prepares businesses to respond in the most efficient way to a crisis. It can be prepared with the help of crisis management experts, damage assessment professionals, a communications/public relations team, attorneys, and company leaders.

It can take years for a brand to build credibility and be successful, but it can take seconds to undo years of hard work via a crisis. Therefore, it’s crucial to maintain a CMP. Consider these steps as you prepare yours.

Risk Assessment

When outlining a crisis management plan, the first step is to assess the risks and threats which could lead to a potential crisis for your business. Although you can’t always anticipate a risk, you can prepare for the ones that are potentially poised to impact your business. You should start by listing the relevant vulnerabilities that could impact your business with the help of the leadership team, company stakeholders, and the crisis expert team. The list could possibly include economic downturns, manufacturing and supply chain issues, product recalls, weather-related crises like flooding/volcanoes/ hurricanes, public relations gaffes, social media issues, negative online reviews, cyberattacks, and workplace matters. You can develop a crisis management plan based on the type and level of risk, and how quickly your team responds to it.

In this stage, you need to be clear about what could be a possible crisis, the different categories of crisis, the expected duration, the impact that the crisis will have (damaged reputation, customer dissatisfaction, revenue loss, regulatory fines, increased costs, low sales, etc.) and the crisis protocol your company plans to follow in the aftermath.

There are a few basic questions that you need to ask:

  • What could be a potential threat that would impact your business functions?
  • How susceptible is your organization to such risks?
  • Can you determine the impact of the crisis?
  • Do you have a mechanism to deal with and respond to such crises?

Identify Substitutes and Contingencies

After determining your risk assessment and potential business impact, you need to come up with an alternative plan. How can you minimize the threat to business and employees? Can you respond quickly to a situation that takes place during odd hours? Do you have ways to communicate information quickly when there’s a need? You also need to prepare emergency escape plans so that when there is a threat, employees can safely exit the premises. In case of virtual threats like poor reviews, negative comments and social media trolls, you should be ready with your statement and action plan.

There will be multiple scenarios you’ll have to evaluate, and the response to each will differ from the other. Identify tools, resources and the specific team which can help you resolve the issue or potential threat. For example, customer service, corporate communication and public relations teams work together to interact with or reply to customer queries and media, and build and protect the image of the company.

Devise a Crisis Management Plan

As soon as you have assessed your risks and identified contingency and alternatives for each potential threat, you should start to work on the actual plan. Team up with all your stakeholders, partners, best resources, and the crisis department for their insights to create the best solution for an identified threat or crisis. Make a document that will have the solutions, steps, relevant regulatory requirements, and the complete action plan that will help you prepare and resolve the crisis. Take a fact-based approach to creating an effective communication route.

This plan helps an organization navigate through situations that can escalate to a crisis. The key elements of the plan include the following:

  • A crisis management team who is in charge of coordinating and supervising the response. They are also responsible for meeting legal guidelines and sourcing credible information.
  • Defining the roles of management, which primarily consists of decision-making and accountability.
  • Setting up processes for both internal and external communications, and creating a crisis playbook with key messages and talking points.
  • An action plan that sets, measures and identifies resource availability, tracks performance, and evaluates the impact.

Revisit the Plan

It is crucial for any business to revisit the plan frequently and perform periodic tests after it’s created and approved by the company. It’s also advisable to review the plan as company protocols are updated, new employees join the organization, and tech/IT upgrades occur. Time-to-time drills of different crisis situations can reveal gaps and strengths of the organization. This will help you evaluate the plan, and make the necessary changes required. All employees should understand their roles, for which a crisis playbook should be handy, or have real-time access to the company’s crisis management playbook. A crisis management training program for the employees will allow them to act proactively during a crisis.

Keep a Resource Repository

To avoid panic during a crisis, you have to keep all the important contact information handy. Your playbook should have contact information of members of the crisis management team, stakeholders, vendors, third party consultants, and other experts. Keep it updated frequently, and if anyone joins (or leaves) the crisis management team, check the document to ensure that it has current contact information.

In addition, your resource repository should have all the resources and materials like flowcharts, timelines, legal documents and access information for the network and communications team (to name a few), when there’s a crisis situation.

It’s imperative for organizations to be vigilant. You need to think through, communicate widely, train the staff and create an effective plan to manage a potential crisis, while monitoring any current issues.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

The Importance of Financial Literacy for Business Owners 

Running a business isn’t just about having a great product or service – it also requires a firm grasp of...

Accounting & Finance

Tax Implications of Remote Work: What SMBs Need to Know 

The rise of remote work has opened exciting possibilities for small and medium businesses – access to a wider talent...

Leadership & Growth

Succession Planning: Preparing for Leadership Transitions 

Change is inevitable in business, and one of the most significant changes a company can face is a leadership transition....

Accounting & Finance

Sales Tax Compliance in the Digital Age: Challenges and Solutions 

The rise of e-commerce and digital business models has revolutionized how companies reach customers, but it has also added new...

Leadership & Growth

Implementing Lean Management Principles in SMBs

“Lean management” might conjure images of big manufacturing plants fine-tuning assembly lines, but the principles of lean are highly relevant...

People Management & HR

Developing a Competitive Compensation Strategy for SMBs

For small and medium-sized businesses, a competitive compensation strategy is key to attracting and retaining the talent needed to grow...

Accounting & Finance

The Role of Financial Reporting in Small Business Growth

Financial reporting often appears to be a routine exercise, but for small businesses, it can be the difference between reactive...

Accounting & Finance

The Impact of Accurate Financial Operations on Business Success

Financial operations encompass the systems and processes that govern every monetary aspect of a business—from managing payables and receivables to...

People Management & HR

The Benefits of Outsourcing Payroll for Small Businesses 

For many small business owners, running payroll is a time-intensive chore that requires meticulous calculation, familiarity with tax codes, and...