Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of crisis management

Definition of

crisis management

General Management

firm's methods of dealing with unexpected negative situation actions taken by an organization in response to unexpected events or situations with potentially negative effects that threaten resources and people or the success and continued operation of the organization. Crisis management includes the development of plans to reduce the risk of a crisis occurring and to deal with any crises that do arise, and the implementation of these plans so as to minimize the impact of crises and assist the organization to recover from them. Crisis situations may occur as a result of external factors such as the development of a new product by a competitor or changes in legislation, or internal factors such as a product failure or faulty decision making, and often involve the need to make quick decisions on the basis of uncertain or incomplete information.

Related definitions of "crisis management"

Recommended Further Reading (Term count)
  • Fraud: Minimizing the Impact on Corporate Image
    by Tim Johnson
    The threat of fraud is faced by all organizations regardless of their size or sector. From the perspective of reputation management, controlling the impact of fraud is particularly challenging for two reasons:That an organization has become a victim of fraud suggests either that someone in the organization is corrupt, or that the organization and its compliance systems are vulnerable. Neither possibility inspires confidence. The word “fraud” has...
  • Understanding Reputation Risk and Its Importance
    by Jenny Rayner
    Reputation is the single most valuable asset of most businesses today—albeit an intangible one. A 2007 global survey1 rated damage to reputation as the top risk, although half the respondents admitted that they were not prepared for it. Hard-earned reputations can be surprisingly fragile in the globalized, technologically interconnected 21st century. The trust and confidence that underpin them can be irrevocably damaged by a momentary lapse of...
  • What Would a New Bretton Woods Mean for the IMF?
    by Augusto Lopez-Claros
    Augusto Lopez-Claros was the Chief Economist and Director of the Global Competitiveness Program at the World Economic Forum in Geneva until 2006.He has been the editor of the Forum’s Global Competitiveness Report and, in late 2006, he established himself as an international consultant based in Geneva, Switzerland, specializing in economic, financial and development issues.He has a degree in mathematical statistics from Cambridge University,...
  • Navigating a Liquidity Crisis Effectively
    by Klaus Kremers
    Until 2007, debt had become very cheap and accessible. Most companies sharply increased their leverage. In Germany, for example, the net-debt-to-EBITDA ratio extremes moved from around 3 in 2002 to around 7 in early 2008. However, a downturn in company performance or an external financial crisis—where lending becomes scarce and borrowing expensive—can make this approach risky.

Definitions of ’crisis management’ and meaning of ’crisis management’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’crisis management’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related Blog Posts

More related Blog results