Why is it important to understand the different stages of a crisis? Identify each and apply the four stages to a crisis or event that has occurred nationally within the last 12 months.
A crisis is a process of going into the red by a business entity, which may result in the firm's exit from the market due to its inabilities and failures. crisis management helps the firm identify the problems, work on those problems, and run the business successfully. The four stages of Crisis management are:
crisis prevention: the crisis management team brainstorms the situations, prepare all the list of possible outcomes, and how they impact the organizational performance.
Incident preparation: helps the firm to identify core problems and designing solutions to those problems. It helps the people list available resources, step-by-step plan to combat crises, which helps them face the situation to be handled professionally, unified manner, avoiding the onset of additional chaos.
Response generation: here, identify the result and study, which results from the above action. If there is a gap between expected results and the actual, it must be studied and works to fill the gap.
Recovery efforts: in this, things are going to be entered into normal conditions.
Each stage helps the people and the firm to deal with the situation carefully. The practical example is the recent case in APSRTC in India, where the RTC runs with huge losses earlier, but the management's actions for the last 1 year help the firm recover, and now it is in the green zone with little profits.
Why is it important to understand the different stages of a crisis? Identify each and apply...
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