The company may have contractual obligations that are violated as a result of the crisis. Crisis management as an essential part of standard business practice. By crisis management we mean the development of capabilities and procedures to reduce or offset the affects of crisis. These capabilities might be designed to maintain customers good will when a crisis cast doubt on a company's integrity. The procedures might be designed to expedite recovery of information or communications operations.
Crisis management touches every facet of business.
It requires a comprehensive coordinated response. And it should be part and parcel of business planning. In order to do that it must be recognized as necessary by top management. In certain industries contingency planning is mandated, but in every industry contingency planning is needed. It is needed to minimize crisis, minimize potential legal liabilities when they do occur, and expedite the recovery of the essential operations.