In any business, it’s important to be prepared for anything. But so many businesses overlook crisis preparation thinking it will ‘never happen to them’. Sadly, the facts prove otherwise.
Each year, approximately three large Australian firms are impacted by a crisis. Of these, over a quarter do not survive.
[Dr. Les Coleman, a risk strategy expert at the University of Melbourne]
What is a crisis?
Simply put, a crisis is something you’re not expecting. We can all think of at least one global crisis we’ve had to endure over the past couple of years! But there are so many other things that can put your business into a spin:
- Natural disaster
- Data breach
- Fraud
- Terror threat or terrorist event
- Corruption
- Cyber-terrorism
- Health epidemic
- Government breakdown
- Protests and strikes
- Public services disruption (e.g. public transport, water leaks)
Having a plan in place can help you keep your business running smoothly – no matter what happens. But what should your crisis management plan entail? Here are four key components to consider.
1. Establish a chain of command.
In the event of a crisis, it’s important to have a clear chain of command in place. This will ensure that everyone knows who is responsible for what and that tasks are completed efficiently. The last thing you want is for your team to be scrambling around, trying to figure out who is supposed to be doing what.
Everyone in your organisation should know whom they can speak to if a crisis hits and everyone should know their role.
2. Have a communications plan.
Your crisis management plan should also include a communications element. This will ensure that everyone is on the same page and that vital information is disseminated quickly and efficiently. Consider creating an internal website or intranet where you can post updates and important documents related to the crisis. You also need to consider access to these documents in the case of power/internet outages.
3. Know your resources.
In the event of a crisis, it’s important to know what resources you have at your disposal. This includes things like emergency funding, backup systems, and contingency plans. Knowing what you have at your disposal ahead of time will help you make quick and informed decisions in the event of a crisis.
4. Have a post-crisis plan.
Last but not least, don’t forget to include a post-crisis plan in your overall strategy. This will help you get back on track after the dust has settled and ensure that your business is able to rebound quickly and effectively.
No one likes to think about worst-case scenarios, but in the mortgage brokering business, it’s important to be prepared for anything. By taking the time to develop a comprehensive crisis management plan, you can give your business the best chance of weathering any storm—no matter how big or small.
Source:
https://www.mpamag.com/au/news/general/risky-business-crisis-management-plans/297244
