Crisis Management Fundamentals
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What is primarily built upon what the public believes to be the most important issues or concerns?

  • Creation of a public agenda (correct)
  • Scanning and identification
  • Formation of policy agenda setting
  • Framing of public opinions

    • What does the process of framing attempt to achieve?

  • To focus attention on certain elements of a message (correct)
  • To eliminate public concern entirely
  • To ensure all perspectives are represented
  • To create multiple realities of the same event

    • In the context of issue sources, which is NOT typically a source of information?

  • Political conferences
  • Retail sales statistics (correct)
  • Local newspapers
  • Social media analysis

    • Which of the following describes the manipulation of language to influence public perception, as exemplified by terms like 'climate change'?

    <p>Framing</p> Signup and view all the answers

    What might organizations prioritize when evaluating an issue’s significance?

    <p>Availability of resources to address it</p> Signup and view all the answers

    Which of the following is NOT a type of media mentioned as an issue source?

    <p>Internal corporate emails</p> Signup and view all the answers

    What is a vital step organizations must recognize when facing an issue?

    <p>Their isolation in dealing with the issue</p> Signup and view all the answers

    What critical factor can influence the success or failure of framing a message?

    <p>The use of naming or labeling</p> Signup and view all the answers

    What is a crisis primarily characterized by?

    <p>Ambiguity of cause and swift decision-making</p> Signup and view all the answers

    What is a critical component of crisis management?

    <p>Coordinated action to control a crisis</p> Signup and view all the answers

    Which option describes crisis preparedness?

    <p>Involves planning, training, and systems manuals</p> Signup and view all the answers

    What can be a result of lacking a crisis plan?

    <p>Increased losses for longer periods</p> Signup and view all the answers

    What does crisis management include according to modern views?

    <p>Steps to prevent a crisis and respond after one</p> Signup and view all the answers

    Which characteristic is essential for effective crisis resolution?

    <p>Understanding of organizational authority lines</p> Signup and view all the answers

    What is NOT a focus of crisis preparedness?

    <p>Post-crisis analysis only</p> Signup and view all the answers

    What is indicated as a potential effect of a crisis on an organization?

    <p>Endangerment of health or environment</p> Signup and view all the answers

    What is the primary goal of risk management?

    <p>To systematically identify and manage risks</p> Signup and view all the answers

    Which of the following best describes 'strategic risk'?

    <p>Risks threatening the organization’s capability to achieve objectives</p> Signup and view all the answers

    What does the term 'compliance risk' refer to?

    <p>Risks associated with breaches of laws or regulations</p> Signup and view all the answers

    In the context of operational risks, which of the following events would be considered a risk?

    <p>A natural disaster like a flood</p> Signup and view all the answers

    Risk is calculated based on which two factors?

    <p>Probability and magnitude of impact</p> Signup and view all the answers

    Which category of risk is focused on financial losses or declines in shareholder value?

    <p>Financial risk</p> Signup and view all the answers

    What is a key activity of risk management after risks are identified?

    <p>Developing and implementing avoidance programs</p> Signup and view all the answers

    Which of the following represents a human or personal risk?

    <p>Employee misconduct or errors</p> Signup and view all the answers

    What does risk perception encompass in terms of public reaction?

    <p>Instinctive and intuitive reactions</p> Signup and view all the answers

    Which of the following categories of risk communication is designed specifically to inform people about risks and make them concerned?

    <p>Precautionary communication</p> Signup and view all the answers

    Which perception factor makes risks from a trusted source more acceptable?

    <p>Trustworthiness</p> Signup and view all the answers

    What is NOT a primary goal of risk communication?

    <p>Providing legal advice</p> Signup and view all the answers

    Which principle indicates that risks perceived as fairly distributed are more acceptable?

    <p>Fairness</p> Signup and view all the answers

    What is the suggested maximum number of messages for effective risk communication according to Mental Noise theory?

    <p>Three to five</p> Signup and view all the answers

    What type of risk communication attempts to assure individuals about the safety risks they face?

    <p>Preventative Communication</p> Signup and view all the answers

    Which factor significantly impacts how acceptable a risk is perceived to be when associated with a dreaded illness?

    <p>Dread</p> Signup and view all the answers

    Which of the following best describes the term 'risk = hazard + outrage'?

    <p>Public perception adds emotional components to scientific assessments.</p> Signup and view all the answers

    What is one effect of personal perception on risk acceptance?

    <p>Greater acceptance of risks associated with familiar situations</p> Signup and view all the answers

    What contributes significantly to an organization's value during a crisis?

    <p>A good reputation</p> Signup and view all the answers

    In which cluster does a natural disaster fall under Situational Crisis Communication Theory?

    <p>Victim cluster</p> Signup and view all the answers

    What is a key responsibility of leadership during a crisis according to effective crisis management?

    <p>To provide focus and clarity</p> Signup and view all the answers

    Which crisis type has a strong attribution of responsibility due to human error?

    <p>Human error accidents</p> Signup and view all the answers

    What is one of the roles of leadership in crisis situations?

    <p>Break down functional barriers</p> Signup and view all the answers

    What is the primary focus of leadership during a crisis?

    <p>Identifying what truly matters and taking action</p> Signup and view all the answers

    Which type of crisis involves events caused by external agents, such as product tampering?

    <p>Victim cluster</p> Signup and view all the answers

    What is a critical factor in how well an organization deals with crises?

    <p>Maintaining a good reputation</p> Signup and view all the answers

    Which cluster indicates where an organization willingly puts stakeholders at risk?

    <p>Preventable cluster</p> Signup and view all the answers

    What does Image Restoration Theory focus on?

    <p>Repairing an organization's reputation</p> Signup and view all the answers

    What can a reputation-reality gap lead to?

    <p>Increased stakeholder skepticism</p> Signup and view all the answers

    Which crisis type is characterized by minimal attributions of responsibility?

    <p>Accidental cluster</p> Signup and view all the answers

    What is a common misconception about leadership in crises?

    <p>They should avoid public visibility</p> Signup and view all the answers

    What is a leadership obligation when managing a crisis?

    <p>Make difficult decisions despite uncertainty</p> Signup and view all the answers

    Study Notes

    Crisis Definition

    • A crisis is an event potentially endangering health, environment, reputation, or ability to do business.
    • Crises are high-impact, low-probability events with uncertainty, time pressure, disruption, and reputational risk.

    Crisis Characteristics

    • Cause and resolution are often ambiguous.
    • Decisions need to be made quickly, considering the impact.

    Crisis Management

    • A coordinated effort to regain control, minimize damage, and prevent future crises.

    Crisis Preparedness

    • Involves planning, system manuals, and training simulations.
    • Companies with crisis plans manage loss better in the long run.

    Crisis Preparedness Focus

    • Crisis management team selection, reporting lines, pre-prepared materials, and logistical resources.
    • Familiarization programs like simulations and communication system testing.

    Agenda Setting

    • Public agenda is shaped by public perception of important issues.
    • Policy agenda is formed in response to real or perceived public concerns.
    • Online agendas influence public policy agendas.

    Framing

    • Placing an event or message within a specific context to emphasize certain elements.
    • Influences public perception of the event.
    • Naming and labeling play a crucial role in shaping public perception.

    Scanning and Issue Identification

    • Issue sources include mainstream media, social/digital platforms, conferences, publications, regulatory updates, internal business units, and stakeholder feedback.
    • Other sources include trade associations, CEO forums, critic websites, industry allies, and expert analysis.

    Risk versus Resources

    • Organizations often prioritize by their capacity rather than the issue's importance.
    • Recognizing that an organization is rarely alone when facing an issue is vital.

    Organizational Risk Categories

    • Strategic: Threatening achievement of objectives.
    • Compliance: Breaches or potential breaches of laws or regulations.
    • Financial: Unacceptable financial loss or loss of shareholder value.
    • Health and Environmental: Safety risks to workers, community, or society.
    • Operational: Plant or process breakdowns, fires, leaks, floods, or explosions.
    • Reputational: Damage to reputation affecting ability to operate.
    • Human or Personal: Wrongdoings by individuals.
    • Supply Chain: Problems arising from actions of others in the supply chain.
    • Technology: IT or e-business failures or data security breaches.

    Individual/Community Risk

    • Concerns health, safety, environmental damage, financial loss, and reputational damage.

    Risk vs. Risk Management

    • Risk: Chance of something happening, calculated by probability and magnitude.
    • Risk Management: Systematic process of identifying, assessing, prioritizing, avoiding, and mitigating risks.

    Risk Communication

    • Interactive exchange of information and opinions about risk.
    • Includes communication about concerns, opinions, and reactions to risk messages.

    The Risk Paradox

    • While technology has made us physically safer, we worry more about health and safety than ever before.

    Risk Perception

    • Expert risk assessment often differs from public perception.
    • Risk Analysis: Uses logic, reason, and scientific deliberation.
    • Risk as Feelings: Instinctive and intuitive reactions to danger.

    Risk = Hazard + Outrage

    • Hazard: Scientific and statistical assessment of danger.
    • Outrage: Public perception of the risk, often ignoring expert perspectives.

    Risk Communication Categories

    • Preventative: Calming people down and providing assurance about risk exposure.
    • Precautionary: Informing people about the risk and creating concern.
    • Crisis: Guiding people through serious hazard situations.

    Personal Perception of Risk

    • Trust: Trust in the source increases acceptance of risk.
    • Voluntariness: Voluntary risk is more acceptable than imposed risk.
    • Controllability: Control over the risk increases acceptance.
    • Familiarity: Familiar risks are more accepted than exotic ones.
    • Fairness: Perceived fairness in risk distribution increases acceptance.
    • Dread: Risks associated with dreaded illnesses are less acceptable.
    • Benefit: Risks with clear benefits are more acceptable.
    • Performance History: Positive past performance increases risk acceptance.

    Risk Communication Goals

    • Increase knowledge and understanding.
    • Enhance trust and credibility.
    • Effect behavior change.
    • Resolve or avoid conflict.

    Mental Noise Theory

    • Limit messages to three or five.
    • Repeat messages at least twice.
    • Use simple language to keep communication clear.

    Rules of Risk Communication

    • Be honest about risk.
    • Provide information people need to make informed decisions.
    • Tailor communication to the audience.
    • Be transparent about uncertainties.
    • Be consistent in messaging.
    • Be responsive to feedback.
    • Build trust with stakeholders.
    • Be prepared to manage conflict.

    The Reputation-Reality Gap

    • Stakeholders’ expectations about how an organization will handle threats create a gap between actual behavior and ideal behavior.

    Importance of a Good Reputation

    • Reputation is an asset, quantifiable, and a wealth generator.
    • It contributes significantly to an organization's value.
    • It is crucial for weathering crises.

    Image Restoration Theory

    • Organizations can manage reputation damage by:
      • Denial: Asserting that a crisis didn't occur or has been misrepresented.
      • Evade responsibility: Shifting blame to others, minimizing culpability.
      • Reduce offensiveness: Justifying actions, minimizing harm.
      • Compensation: Offering apologies, restitution, or reparations.
      • Mortification: Taking responsibility, expressing remorse, seeking forgiveness.

    Situational Crisis Communication Theory (SCCT)

    • Victim cluster: Crisis where harm is inflicted on the organization and stakeholders (e.g., natural disasters, workplace violence).
    • Accidental cluster: Harm from unintentional actions (e.g., technical errors, equipment failure).
    • Preventable cluster: Intentional risk to stakeholders or failure to prevent the crisis (e.g., human errors, organizational misconduct).

    Leadership in Crisis Management

    • Identify and prioritize issues and crisis threats early.
    • Allocate sufficient resources to address threats effectively.
    • Break down functional barriers to integrate issue and crisis management systems.
    • Recognize that issues and crises can be opportunities for improvement.
    • Take personal responsibility for developing and implementing proactive plans.

    Leadership Traits in Crisis Management

    • Focus: Providing clarity and direction in complex situations.
    • Direction: Guiding individuals toward achieving control.
    • Decision-Making: Making difficult decisions under uncertainty.
    • Support: Offering emotional support to those struggling.
    • Humanity: Presenting a human face to the public.
    • Drive: Preventing procrastination and indecision.
    • Clarity: Simplifying complex situations to promote control.
    • Accountability: Taking ultimate responsibility for crisis management.

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    Description

    This quiz explores the essential concepts and practices of crisis management, including definitions, characteristics, and preparedness strategies. Understand the importance of effective crisis management and how organizations can minimize damage and regain control during a crisis.

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