The Concept of Crisis and its way of management.

There are innumerable number of definitions for a crisis. Basically the term crises can be defined as a significant threat to operations which further leads to the negative results if not handled properly. Some crisis like products harm and industrial crisis can result in injuries and even loss of lives. The most common cause of a Crisis situation is the financial losses by disrupting the operations of any industry, corporate house or in any organization may it be from the government or private sectors. Crisis creates a loss of market share/purchase intentions or spawning lawsuits . It can be defined as an unpredictable major threat that usually have a negative impact on the organisations, stakeholders or industries. It has three vital features:-

• A crisis can only be expected and can never be protected (one cannot say exactly when it will occur) .
• It creates a major threat and has the potential to hamper organisational operations in someway or other.
• It may happen as a result of product tampering, researchersresearchers have written that a crisis is a disruption that occurs physically . Since a crisis threaten the industry, so it may also happen as a result of an accident and because of the negligence or criminal behavior of an individual or organisation.

The crisis runs the following risks :-

• Escalating in industry.
• Falling under close media or government scrutiny.
• Interfering with the normal dealings of business.
• Hampers the positive image enjoyed by a company and its officers.
• Damaging a company’s bottom line.

There are various categories of corporate crisis which includes- Technological Crisis, Natural Disaster, Confrontation Crisis, Rumors, Crisis due to Workplace Violence, Crisis of Malevolence, Crisis of Organisation misdeeds etc. and in order to overcome or manage these all crisis situations, a corporate developmental strategy has been designeddesigned namely termed as Crisis Management Strategy (CMS) which functions in the synthesis of strategic management and primarily aims to prevent crisis for follows up company’s advancement. It includes projection of the future based on ongoing, monitoring of a business internal and external environment, as well as selection and implementation of crisis prevention strategy and operating management. The strategy of crisis management is divided in three prominent stages- Pre crisis, Response and Post crisis situations. Among these three, the last stage is the most vital one i.e. it creates a post-mortem kind of situation to scrap out what exactly went wrong, which helps them to think of the ways better prepare for the next crisis.