Skip to main content

Crisis management

Crisis management definition: What does crisis management mean?

The term crisis management currently refers to a systematic way of dealing with crisis situations. The aim is to overcome crises. In companies, crisis management is used to ensure continuity.

A crisis generally refers to a difficult situation or a time of danger. Management is the coordination of activities that should lead to a certain goal. In summary, crisis management refers to the coordination of activities in order to master a time of danger.

Crisis management can be divided into active and passive crisis management. Active crisis management means that measures are already planned in order to be able to react to future crises. Reactive crisis management refers to dealing with existing corporate crises.

Types of crises

There are different types of crises:

  • Crises that threaten the existence of the company
  • Control or decision-making crises
  • Crises of change
  • Crises caused by events

The existential crisis or survival crisis is about liquidity in companies. Control crises refer to problems with decisions. Change crises result from an unwillingness to accept change. For example, when a new programme is not accepted in the company. Crises caused by certain events include, for example, data theft or external events.

Furthermore, a distinction can be made between short and long-lasting crises, potential, latent and acute as well as controllable or uncontrollable corporate crises.

Crisis management and the crisis team

In order to manage crises successfully, companies set up a crisis team as part of their crisis management. This creates a suitable organisational structure and process organisation in order to be structurally prepared for critical events.

However, none of this makes sense if there is no suitable means of quickly distributing information and exchanging information among the crisis team members. Rapid alerting of the crisis team is therefore essential to avert damage to life and limb and to the company.

Crisis management: Coping as a process

Four phases can be distinguished in crisis management: Identification, planning, realisation and control.

  • Identification: Problems and threats are noted. The actual situation is determined.
  • Planning: In planning, measures are selected and goals are set to be achieved.
  • Realisation: During realisation or control, implementation takes place.
  • Control: The control phase is necessary to monitor the progress and results of the measures taken so far.

Crisis management in a nutshell:

  • The term crisis management currently refers to a systematic way of dealing with crisis situations.
  • There are different types of crises
  • Crisis management as a process consists of four phases

Find out more about safeREACH now