How To Respond To A Business Crisis
For almost everyone, March 2020 brought with it a tsunami of changes and challenges rarely experienced in the modern era.
Global, as well as national lockdowns kicked in, creating a different operating paradigm for businesses and organisations.
Businesses were shuttered, people had to work remotely, your movement and physical contact with others become limited, creating a wave of crises that companies and organisations are dealing with up to today.
With an economy facing new challenges on a daily basis, business processes, value chains and communication measures need to be constantly reviewed and reassessed. Companies need methods and tools to create timely and sustainable responses to crisis situations.
Crisis management involves clear roles, responsibilities and requirements in the following areas: crisis prevention, crisis assessment, crisis handling and crisis termination.
A. Anticipatory crisis management.
This involves forecasting possible crisis scenarios (crisis prevention) as well as subsequent alternative plans (contingency plans). Business continuity management is a component of this.
B. Preventive crisis management.
This seeks to avoid potential crises through early detection by creating early warning and early detection systems. The aim is to anticipate and stop the development of acute crisis phases.
C. Offensive crisis management.
This is the first response to an acute crisis. It implements measures to fight off a corporate crisis that has already occurred. It focuses on designing and implementing recovery strategies and measures, with the goal to safeguard liquidity and avoid any risk of insolvency.
D. Insolvency crisis management.
These are acute crises that leave the company with no chance of survival. Protecting the interests of shareholders, employees, customers and suppliers is the primary focus of target-oriented planning, implementation and monitoring of liquidation. Fortunately in the South African context, Business Rescue can be considered as a viable alternative to liquidation.
Are You Facing A Business Crisis?
Don't wait until it's too late!
If you are facing a situation that is threatening or could threaten to harm people or property, seriously interrupt business operations and/or damage business reputation, then we can assist you.
We deliver flexible management solutions helping you navigate through crisis situations making you stronger, fitter, better.