Whether they try to avoid it or not, most businesses will, at some point, face a crisis. It could be a faulty software update that impacts IT systems, computers, and servers, a disruption in the supply chain due to movement restrictions; or workforce issues as a result of unexpected regulatory amendments by the authorities.
No matter what form it takes, companies must be ready and prepared to tackle a crisis. This being the case, anticipating major risks and putting a crisis management plan down on paper is the optimal strategy to put in place.
In fact, according to 86% of the 2,000 respondents to PwC’s Global Crisis and Resilience Survey 2023, this is what the reality looks like an investment in a crisis management unit in one form or another.
If your company is part of the cohort that plans to improve its crisis communication and action plan in 2024, this article will enable you to learn more about crisis management and expert networks.
What is crisis management?
According to PwC’s Global Crisis and Resilience Survey 2023, around 96% of companies have experienced some level of disruption over the last couple of years.
When unforeseen disruptions do occur, crisis management refers to an organization’s reaction to them. Since crises can take multiple forms, an organization could have several crisis management strategies in place.
Key responders can include senior management, specific department heads, crisis management teams, communication officers, and other essential personnel trained to handle crises effectively.
Crisis management is essential to reduce risks during serious challenges and to maintain a company’s ongoing operations.
What are the most common types of crises?
- Natural crises (hurricanes, fires)
- Financial crises (a decline in the economy following a pandemic)
- Organizational crises (issues at the executive level, including abuse and harassment)
- Workplace violence (physical, psychological)
- Technological crisis (faulty updates, cyberattacks, data breaches)
A recent technological crisis that affected millions of businesses and their customers worldwide involved a faulty software update by a U.S. cybersecurity firm.
On July 19, 2024, US-based cybersecurity firm CrowdStrike released a faulty update for its Falcon Sensor security program which caused issues with Microsoft Windows. Approximately 8.5 million systems crashed and left them unable to be restarted correctly. This event has been dubbed the worst failure in the entire history of information technology.
As a result of this crisis, in the 12 days following the event, CrowdStrike share price fell by 32%, resulting in a US$25 billion loss in market value.
Internal management and stakeholders who contribute their individual viewpoints and specialized knowledge are frequently included in conventional crisis management teams. However, these teams could be further strengthened by leveraging expert networks.
Advantages of engaging expert networks for crisis management
Organizations can obtain a plethora of specialized knowledge and creative solutions through the use of expert networks. Here’s how expert networks can help businesses with their crisis management strategies.
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Various perspectives
Because crises are complex phenomena, expertise from multiple specialist fields and different levels of management are required to adequately comprehend and resolve them.
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Specialized knowledge
The RightAngle expert network recruits professionals who are able to provide unique information that can be used to handle particular types of emergencies.
For example, reaching out to one or several IT security experts to reflect on the vulnerabilities of an IT system or even during a cybersecurity incident can offer prompt and practical guidance on prevention, control, and recovery.
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Quick response
Time is vital during a crisis. With RightAngle, you can rapidly connect with the relevant professionals, and a fast reaction means a crisis can be effectively mitigated.
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Reliability and Reputation
Engaging reputable specialists can enhance a company’s crisis response capabilities and bolster its credibility among both customers and investors.
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Ongoing development
Organizations can stay up-to-date on emerging trends, best practices, and innovative approaches to crisis management by routinely engaging with external professionals.
Final word
To maintain their operations, credibility, and customer trust during times of uncertainty, a company needs to take certain steps to improve its crisis management strategies. Businesses that leverage expert networks gain access to a massive pool of specialized knowledge, allowing them to deal with crises with greater efficiency.
Make RightAngle your strategic partner in crisis management to strengthen your organizational resilience and respond more quickly and efficiently to any issues that may arise.
Suggested reading:
Lending Industry: Global Forecasts and Trends Worth Following
Fintech Ecosystems: Future Trends and Expert Networks Impact
The Role of Expert Networks in Navigating the Real Estate Industry
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