Companies have now increasingly become aware of the importance of workplace safety. From proper risk management to employee training programs, organizations are utilizing workplace safety to increase their workforce’s effectiveness. By reducing employee absenteeism, increasing employee satisfaction and morale, reducing costs related to insurance claims, and increasing employee retention and talent attraction, companies are now ready to reap the benefits of workplace safety programs.
It is great that organizations are focused on how to prevent workplace injuries. For companies, this is one very important safety factor. This is the concept of crisis management or disaster management.
Most companies aren’t even aware of what crisis management is, let alone implement effective programs.
What is Crisis Management According to John Spach
Crisis management is the process through which an organization uses its resources to deal with any disaster or crisis. This management of a crisis is both preventive and active. Crisis management allows organizations to take pre-emptive steps to prevent disasters from mitigating their effects on their business. It also deals with the immediate aftermath, which focuses on preserving the company’s assets and stakeholders.
Crisis management deals with both industrial and environmental disasters. Without a proper crisis management system in place, a company can suffer tremendous losses, both in terms of human lives and finances.
Why is Crisis Management Important?
Crisis management involves steps that try to ensure that try to prevent any disasters and mitigate their impact. A good crisis management system can quickly deal with whatever disaster affects the organization and resolve it quickly and efficiently.
Thus, a good crisis management system will save lives and the finances of any company. When a crisis is not managed properly, it can lead to a catastrophic loss of life. History has proven this with incidents like the Union Carbide Plant Leak.
If humanitarian grounds do not concern you, then you should also note that poor crisis management directly affects an organization’s bottom line. Whether it is plummeting stock prices, or a massive loss to company assets, or important stakeholders losing trust in the company, a crisis can affect any company to the core. Having disaster insurance or policy doesn’t make up for the blow dealt to the finances by a crisis in the long term. Studies have shown that proper management of a disaster is more impactful than disaster insurance in terms of recovery.
By having a proper channel to deal with any crisis, businesses can prevent, or at the very least, mitigate such effects.
John Spach explains that instead of devoting resources to figure out a good crisis management system on your own, you can make the process easier by relying on experts. Experts in crisis management systems, companies, and institutes have studied the best ways to both prevent and mitigate disasters.
This is not only cost-efficient for your organization but a much more impactful method of using crisis management. Experts can pinpoint areas that will need the most attention and can have plans and resources ready to be used whenever a crisis strikes.