Page 68 - Azerbaijan State University of Economics

Ali Ahmed Suliman Elmahdi, Ilgar Seyullayev: The Theoretical Background About the
Impact of Strategic Planning On The Effectiveness of Crisis Management

Crisis management

Crisis management is a scenario leadership process that integrates firm roles
and duties as well as a methodology for organizational needs. Measures in
the following categories will be taken as part of the response: crisis
prevention, crisis assessment, crisis management, and crisis resolution. The
mission of crisis management is to be equipped for a crisis, to guarantee a
quick and efficient reaction to a crisis, to establish clear lines of management
and decision-making in the case of a crisis, and to decide on crisis
termination procedures. John-Eke, E. C., & Eke, J. K. (2020) Thus according
to their study, proactive crisis management, it is extremely difficult for
businesses to dodge crises of all sorts and magnitudes owing to a dynamic
and constantly changing global business environment. The researchers wanted
to see if there were any links between people's perceptions of crisis awareness,
crisis preparation, and organizations' actual crisis management measures in the
face of significant industrial disasters. Also, to see if other factors influence
people's perceptions of crisis-awareness and crisis-readiness. Mitroff, I. I.,
Shrivastava, P., & Udwadia, F. E. (1987) the stakeholders, managers and
executive directors of firms have been so focused on the profit but paid less
attention to the effectiveness of crisis management. This must be taken into
account, since it may have an impact on the results of crisis-management
efforts and measures in different industries.

Crisis assessment and prevention
According to Lockwood, N. R., & SPHR, G. (2005) The formation of an
incident response team is the first stage in strategic crisis management. This
suggests that to evaluate the size of the crisis, the manager must assemble a
team of experts to study the problem to determine and locate the problem's
causes. They further stated seven individuals expected to be part of the crisis
management team, they are as list stated below.
1. Team Leader—a senior manager with the decision-making authority on
behalf of the company.
2. Security Director—serves as the chief information officer and is in
charge of enabling plan creation, professional development, and the
establishment of a crisis centre.
3. Finance Director—evaluates the economic repercussions of each type of
accident identified in the plan, decides for needed money to be
accessible in an emergency, supervises budget distribution, and keeps
track of the firm's crisis costs.

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