StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Managing Crisis in an Efficient Way - Report Example

Summary
This report "Managing Crisis in an Efficient Way" presents Business Continuity Management that ensures the continuity and uninterrupted functioning of the business operational activities. It is an on-going process that ensures the elimination of business failure by using techniques…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful

Extract of sample "Managing Crisis in an Efficient Way"

Business Continuity Management and managing crisis in an efficient way Business Continuity Management ensures the continuity and uninterrupted functioning of the business operational activities. It is an on-going process which ensures elimination of business failure by using techniques like risk management and other important sciences. The comprehensive business continuity management includes disaster recovery, business recovery, and contingency planning. It is defined as “A management process that provides a framework to ensure the resilience of your business to any eventuality, to help ensure continuity of service to your key customers and the protection of your brand and reputation” (Smith, 2008). As an entity grows and develops, newer and more potential threats begin to emerge and the businesses have to develop newer immunities to cope with these kinds of risks. After such incidents occur, the organization began to investigate into them and necessary preparation takes place so that at least in the future, the business can easily deal with such risks. The business does not become immune to such risks but the loss is reduced. This essay relates risk with business continuity management in the first part and how businesses indulge in post incident investigations in the case of crisis in the final part. Risk can be defined as “the threat or probability that an action or event, will adversely or beneficially affect an organization’s ability to achieve its objectives” (Luhmann 1996:3). Risk Management is defined as "making the most efficient before the loss arrangement for an after the loss continuation of business" (Fischer & Green, 2004, p.130). It is one of the important process that involves steps that are to be taken at a regular basis to ensure that the business carry on without any problems and can reach towards its objectives and goals. The following steps can be taken to ensure the smooth flow of any business and organization: 1. Context establishment. 2. Risk identification. 3. Risk analysis. 4. Risk evaluation. 5. Risk treatment. 6. Monitor and Review. Risk Management is not absolute and it is based on chance. It creates more certainty on the chances of different outcomes and reduces the probability of failures. The primary objective is to eliminate unfavorable risk events to the extent where it is possible and under the ambit of control of the organization. This is most effective on the pockets in terms of cost. In other words, such measures are commonly and most popularly known as preventive controls. Even the best of Preventive controls are not immune and can fail. The day to day operations can come to a halt and the business may suffer losses. Therefore, Business Continuity Management also aims to ensure that the key and important business resources are in uninterrupted supply for the critical business activities. Depending on the professional employees in the organization business continuity management can be approached, by means of how they can comprehend the organizations business and business risks (Australian National Audit Office, 2000, p.9). Business continuity plan is what is extremely important for a firm. In fact, any organization engaging in business continuity management practice should make this plan as the first step. It identifies the potential problems and threats to the business. Not only that, it also determines the processes and the necessary steps to be taken to make the organization to come back on track. The plan and its proper implementation needs to be synchronized properly by the organization. This makes sure that the risks are accurately identified beforehand. The continuity plan generally covers the following parts: Disaster Recovery Plan Business Resumption Plan Service Area Contingency Plans Part 1: Risk management and business continuity management relationship: As already discussed earlier, the primary objective of Business Continuity Management is to ensure the uninterrupted flow of the business objectives to make profits and move the business closer to its goals and objectives. Every adverse risk-be it small or big has some negative impact on the organization’s business and on its financial data. The activities should always go on and on. Risk management must be carefully adopted by the organization to avoid high risks and eliminate or reduce their harmful consequences. As popularly said, “Prevention is better than cure.” These risks are the biggest enemies of any business and every organization should safeguard against them and use appropriate measures to mitigate them through efficient and effective Risk management. It lays down the path for identifying, analyzing and reach the business aims, and in the long run, works towards reaching its aim. Risk management must be undertaken by every department within the organization and used appropriately at every management level. Business Continuity Management without risk management is incomplete and may not give the required results. They serve as the two legs to an organization, and help it to walk continuously through good and bad times to reach the ultimate aim. In fact, some of the stages of risk management will serve as the platform of business continuity plan and finally and more broadly, to the Business Continuity Management. As mentioned in (AS/NZS 221:2004) "In practical terms there is commonality in the content and conduct of ‘Step 1: Commencement and Context’ undertaken for BCM and ‘Establish the Context’ for the risk management process in AS/NZS 4360:2004. What is needed is an integrated approach which ensures that the work undertaken and done in the initial stages of the risk management process goes directly into the starting of the Business Continuity Management process. The difference lies in the context which is somewhat narrowly defined for Business continuity management because it tends to identify and stress on only those elements which lead to the disruption of the business. Step 2: Risk and Vulnerability Assessment This step looks at vulnerabilities of the risk management’s context and then analyzes the risks. As already discussed earlier, every adverse risk, big or small will have a negative impact on the business and may be take it to the point where the business is disrupted or even needs to be stopped. What is required is the right is the good preparation and even better reaction. This alone will help the business to survive, be nurtured and grow handsomely. Business continuity management can handle the disruption of the organization and make the best plans to keep it up by going to back to AN/NZS 4360:2004 "Treat risks" and the main treatment plans consist of avoid, share, retain or reduce the likelihood and/or consequence of the risk (AS/NZS 221:2004). The most important strategic risk that is faced by any organization in the world is that whether it will remain operational. The best treatment to such a risk is to take such steps that at least reduce the probability of happening of events which leads to disruption of operations. This is not all. What if the disruptions do occur? The plans for dealing post incident scenario will be equally important. These plans aim to reduce the adverse impact on the organization and the business. They are designed to manage the continuity of the organization. High impact/low probability risks and low impact/high probability risks may need to be separately taken care of. For e.g, the high impact risks have lower chances of occurrence but if they do occur, they can cause total disruption and the business may come to a standstill. Therefore, the strategies to reduce their impact should be implemented. The strength of correlation between risk management and business continuity depends on the individual organization. For e.g, a newer firm may not have such an integrated approach between the two. The tools, techniques and assessments used for the two may be quite different. Part 2: Crisis management post incident A crisis cannot be totally avoided. It is very common to an organization- be it new or very mature, large or small, though the scale and the intensity of such crisis may differ. The hard days do come and the firms which come out fighting such times will eventually reap the benefits of the greener times. A crisis may try to pull the business back but the progress must never be stopped at any cost. Here comes the point of preparedness-the firms which are better prepared to undertake and live through this crisis period develop and reach its goals. Pearson and Clair (1998) stated that, “An organizational crisis is a low-probability, high-impact event that threatens the viability of the organization and is characterized by the ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly”. “Man learns from his mistakes.” This is what makes the post crisis period most important. The proper investigations must take place and the organization must rise again. Having learnt what are the things that went wrong and to avoid them in future, the firm is now more robust and better prepared for such eventualities. The post crisis period is the recovery stage. Also, it holds so much importance because the business tends to learn from this phase. This learning ensures that in the future, the causes of such a crisis are avoided. Finally, to conclude: the essay clearly illustrates the relation between risk management and Business Continuity management. Business Continuity Management is incomplete without Risk Management. In fact, many of the stages of risk management form the basis of Business Continuity Management. They go hand in hand with other. The second half of this assignment discussed the post crisis phase. What is important is the learning in this part which can be done through proper investigations. This will improve the organization in the future, and take it on the path of success. Risks are properly managed, awareness is increased and the business becomes prepared to face and effectively handle threats and other eventualities in its lifetime. Any business should be like a going concern which can only be made possible by such necessary steps which the organization takes from time to time to grow. In other words, Business Continuity Management ensures the uninterrupted functioning of the organization. References: 1. Pearson, C., & Clair, J. (1998). Reframing crisis management, The academy of management review 23 (1), 59-76. 2. Andersson, M. G, & Waldén, A. (2008). How a bank organization handles robberies: A question of crisis management. Jonkoping University, Jonkoping International Business School. 3. Fischer, R.J., & Green, G. (2004). Introduction to security (7th ed.). Boston: 4. Standards Australia. (2004). AS/NZS 4360:2004, Risk management. Standards Australia. 5. Standards Australia. (2004). HB 221:2004, Business continuity management. Standards Australia. 6. Pearson, C., & Clair, J. (1998). Reframing crisis management, The academy of management review 23 (1), 59-76. Read More

CHECK THESE SAMPLES OF Managing Crisis in an Efficient Way

How Do Groups React to Unexpected Threats Crisis Management in Organizational Teams

crisis Management in Organizational Teams Table of Contents Table of Contents 2 Introduction 3 The Concepts Acquired from the Article 4 Using the Learning Obtained from the Article in Work Experiences 6 Knowledge of crisis Management 8 Organization Theory & Design Compared with the Article 9 Conclusion 12 References 13 Introduction In this context, two conditions are generally determined to depict a crisis event for an organization.... A crisis management is thus essentially required to be devised with the intention of minimizing the impacts of unpredictable occurrences which may seriously hamper the performances of an organization either in its short-run or in its long-run performances2....
8 Pages (2000 words) Research Paper

The Relationship between Rationality of Investors and Market Efficiency

in an efficient market, significant information is freely accessible to all participants.... in an efficient market, significant information is freely accessible to all participants.... However, if there is an efficient market and current prices fully replicate all information, then selling and purchasing in an endeavor to outperform the marketplace will efficiently be a game possibility rather than expertise (Jones, 2009, p.... These computations of returns approximations are possible where there are efficient market mechanisms....
6 Pages (1500 words) Essay

Behavioural Finance and Market Efficiency

In general, the ability of each country to develop efficient market has something to do with the development of capital asset1.... Using knowledge on behavioural finance, the main causes and underlying drivers of the most recent global financial crisis will be identified and tackled in details.... As part of analyzing the factors that has triggered the recent global financial crisis, both behavioural and non-behavioural explanation behind such crisis will be compared and contrast....
12 Pages (3000 words) Essay

Effective Crisis Communication

Sensing the prodromes is not given its due weight age paving way to havoc via crises.... Many researchers are now focusing on crisis management, as it is now being realized how important it is to be prepared in advance during such situations.... The present paper focuses on how to effectively deal with crisis situations.... The paper takes into consideration various situations from the past and provides an analysis on how they were managed and what could have been done to More over, the paper discusses each step of crisis management plan in detail and how to best implement it....
18 Pages (4500 words) Research Paper

Potential and Possible Consequences of Systemic Financial Crisis

Towards the end of each concept, an attempt to identify the ways to gauge investments in a way that those do not lead to the systemic financial crisis are made .... The paper draws attention to the systemic financial crisis, indicating its potential causes, using theoretical and empirical approaches.... Thus I conclude that the best method for obtaining a thorough knowledge of a stock appears to be with a combination of fundamental and technical considerations The paper now outlines the principal theoretical approaches to the financial crisis....
20 Pages (5000 words) Essay

The Relationship between Rationality of Investors and the Market Efficiency

In this hypothesis, economists led by Samuelson postulated that investors have an optimal marginal utility; investors made investment choices that corresponded to their respective efficient frontier (Higgins 2009, p.... In the 1960s, Eugene Fama developed the efficient Market Hypothesis; Fama argued that in an active market, which includes various intelligent and knowledgeable, securities will be aptly priced and replicate all available information (Fama 1995, p....
6 Pages (1500 words) Essay

Crisis Management of Chinese Enterprises

Mitroff, an expert in organizational crisis management asserts that efficient organizations are those which have sound systems that address complex principles and their role in solving crises.... he authors of this journal agree with Mitroff's idea about the importance of having better systems that are efficient in handling daily challenges as far as organizational management is concerned.... This paper "crisis Management of Chinese Enterprises" explains that enterprises encounter many different crises in their daily operations....
10 Pages (2500 words) Annotated Bibliography

Managing Crisis and Risk

"managing crisis and Risk" paper explores various ways businesses can establish customer support services to prevent the repeat of what happened in BA and Gate Gourmet.... In addition to this, customers are also attracted and retained by the way the company responds to their demands.... Management of crisis and risk is the most sensitive area of employee management.... A crisis can be defined as an expected and unplanned event where workers boycott duties in pursuit of a common agenda....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us