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.
Crisis management restrains dollar losses in a crisis.
Crisis Management can ensure business survival, but unlike insurance it is dynamic rather than passive. And unlike insurance, it is not only an expense, it plays a part in the decisions made on a day to day basis for operations and support facilities. It is a smarter way of doing business. Corporate officers must recognize that contingency planning is not a luxury. Planning to deal effectively with business crisis is nothing less than planning for the survival of the company.