Types Of Crises And How To Deal With Them

First, explain a crisis in simple words

A crisis is a really big problem that needs to be solved right away. It’s like when you accidentally spill a whole bowl of cereal on the floor and there’s milk and cereal everywhere. You might feel really worried and upset because you don’t know what to do. But it’s important to stay calm and figure out a plan to clean up the mess. That’s kind of like how people deal with a crisis. They work together to figure out a solution to the big problem and make things better.

It’s important to manage a crisis because it helps people stay safe and makes things better when something bad happens. Just like when you accidentally spill a bowl of cereal and it makes a big mess, sometimes there are bigger problems that can happen that might make people scared or hurt. When we manage a crisis, we work together to fix the problem and help people feel better. We might call for help from grown-ups who know how to solve the problem, like firefighters or police officers. By managing a crisis, we can keep everyone safe and make sure things get better.

Introduction

Problems may arise in a company, organization, or institution at any time. Mostly, they have mechanisms in place to deal with untoward incidents. Whatever trouble may appear, they hope it will not impede day-to-day operations, and things will go as usual, sooner or later. 

But it is different when a problem comes out of nowhere and suddenly threatens the workings of a company, organization, institution, or even its existence. You have a crisis at hand. Unlike typical day-to-day problems, a crisis threatens a system’s stability and strikes the heart of the matter. 

There are several types of crises that may bedevil a particular company, institution, or organization. They ranged from the predictable to unforeseen ones, which started relatively small, suddenly erupting and popping out in the open. 

A crisis is a grave situation, a critical condition that, if not handled properly, may result in loss of money, essential resources, and even lives. It is imperative, therefore, that those concerned deal with it decisively and with conviction. They must settle the matter as soon as it arises and solve the problems and issues. 

So what are the different types of crises?

Natural disasters

Environmental crises beyond human ability to prevent.

Tornadoes, hurricanes, earthquakes, and volcanic eruptions are some examples. All those events can affect a company or derail or stop its activities. They pose severe threats to lives, properties, money, and assets. 

A hurricane is an example of a natural disaster that can result in a crisis situation.

People can prepare against some natural disasters, weather disturbances, for instance. Others are much harder to prepare for, like earthquakes. But of all the crises that may arise, those involving natural calamities are the ones where it is easiest to be proactive. 

One can get information from media and government institutions to prepare for crises or avoid them.

A company, organization, or institution can prevent disruption of operations by having structures that can withstand natural disasters. They can have effective safety measures for evacuation, suspending activities, or maintaining a minimal workforce for operations. 

Technology disasters 

A far more challenging crisis to manage because it could be even more unpredictable and unexpected than natural disasters are technological disasters. It could become a full-blown crisis caused by employees’ criminal behavior, neglect, malfunction in the system, and breakdown of cyber wall defenses, among others. 

An example of a technological crisis involving the internet is the unexpected crashes of websites and systems. Such happened when Google shut down in 2020 following an outage and when Facebook was inaccessible for several hours in the last quarter of 2021. 

Technological disasters may also involve industries, such as nuclear meltdowns like those at Chornobyl or oil spills. A technological disaster could also occur with a natural or artificial disaster. That happened to Fukushima in Japan in 2011 and to the Persian Gulf during the Gulf War.

Cybercrime (Hacking)

Cybercrime is an all-pervasive problem in this era of the internet. Hacking of accounts and systems, email scams, identity theft, spoofing and phishing, and the prevalence of online predators are among the examples. Another more common type of cybercrime is cyberattacks on different systems and websites. 

Cyber Hacking is one of the most common cybercrimes today.

The most common form of cybercrime is hacking accounts, usually accounts relating to banks, credit cards, or other financial institutions. 

Most cybersecurity worldwide focuses on protecting accounts and systems from hacking.

The problem can reach crisis-wide proportions if those crimes could affect an entire operation of a company or render them ineffective for substantive hours. It also leads to substantial loss of money, resources, property, or workforce hours. 

Critical virus attack (Ransomware)

Virus attacks on websites and systems could result in a technological crisis for large, public, private institutions, companies, and corporations. Ransomware could make a system inaccessible and inoperative even for the owners. Viruses and malware could affect the operation of a website, hindering its operations. 

Conflict of Interest, Bureaucratic/Political Crises 

Crises concerning conflict of interests in companies are common. The labor laws and conflict resolutions are there precisely to deal with a possible situation involving stakeholders in companies, workers, and employers, for instance.  

Strikes and other labor relations issues (sit-ins)

Strikes and other labor relations issues could happen if the situation evolves into a crisis and both parties disagree. Lockouts could also occur. If things like this become further deadlocked and explode into a full-blown crisis, the company’s existence might be at stake.

Rumors 

It could affect labor relations and negatively impact the company’s morale and productivity. A labor relations crisis is taxing and costly on the employer’s part. It could mean lost revenue and working hours. On the part of the employees, it could lead to a loss in income. 

Rumors can poison goodwill, and if unchecked, can result in a crisis situation.

It can generate other forms of crises too. If unchecked, rumors could lead to misinformation and create other troubles, usually involving workers’ confidence in their fellows and management. 

Product Tampering

And worse, rumors could poison goodwill and the working environment in the company. It could lead to sabotage, like product tampering. That is why people are concerned must labor relations issues and conflict between labor and management with zeal and enthusiasm. They must take a proactive stance and never let it evolve into a crisis.

Leadership crisis

Crises arising from leadership, personnel, and running the affairs could besiege corporations and institutions. It could result in a severe deadlock of operations when it becomes unmanageable. It might lead to losses in money and assets and could hamper corporations and institutions for a long while. 

Leadership crises, for instance, always occur now and then in some public and private institutions. It may be due to conflict of interest, questions about ownership, or a battle for corporate control. They might affect decision-making, which is vital for the functioning of companies, organizations, and institutions. 

This crisis may spill to others, resulting in bureaucratic problems. Companies can have deadlock and problems transferring or assigning personnel to important positions.

 It could also lead to severe problems in operations and decision-making involving departments and other personnel. 

Political crisis

Aside from leadership crises in companies, leadership crises in society might also, directly and indirectly, affect companies and institutions. Political problems of all kinds, like a crisis of legitimacy, insurgency, and intense political bickering, may hamper economic growth and lead to severe financial crises. 

No one can escape the consequences of a political crisis.

The crisis, in turn, could gravely affect companies. Politics’ effects on business are well-known and need not detain us here. Suffice it to say that politics affect all aspects of society. Everybody suffers from a political crisis. Companies must be aware of how it can affect them if only to deal with it properly. 

Sudden crises

Uncontrollable Crises

Unforeseen circumstances may occur which may catch the organization unaware. A sudden turn of events may lead to a series of events that could undermine the stability of an organization, institution, or company. It may trigger a crisis at several levels and severely damage those concerned. 

The suddenness and total unpredictability of the crisis, which was uncontrollable for those concerned, and did not even factor in their cost-risk analysis, makes it genuinely fatal. Organizations are caught off-guard and flat-footed and could not make proper adjustments in time to save the situation. 

Catch an organization unaware

A single accident, for instance, can bring down a mighty airline. A bank run may affect a large company even though it is financially secure and stable. The death of a top honcho may suddenly create a leadership vacuum that may affect a company’s or organization’s performance. 

Such unfortunate events may undermine even the best organizations. Many companies have closed down, and organizations folded up because they failed to weather the storm brought about by the unexpected crisis. History is replete with examples of how the sudden turn of things, if not handled properly, could spell doom for many.

One unfortunate event may suddenly turn the fortunes of even the most stable companies and organizations.

May or may not be time limited

These types of crises may or may not be time-limited. Weathering it ultimately depends on how the crisis impacted the organization. It also depends on how well the organization or company is run and built or whether they are strong enough to weather such unforeseen storm, crisis, or challenge. 

Smouldering crises 

Smoldering crises are the exact opposite of sudden or unexpected crises. Smoldering crises are usually the result of an organization’s inability to “foresight” possible consequences or actions. It can also result from a company’s hasty decisions in implementing specific rules, regulations, or policies.  

Start slowly and quietly.

Crises of this type flow under the radar, creeping as they say. Even those who are wise barely notice it until it is too late. One reason is that a confluence of factors brings it about. And by series of missteps, or rather, a single mistake compounded by those missteps. 

Those mistakes, mostly unnoticeable at first, gradually affect the organization. A policy, for instance, unexplained by management, might be misinterpreted. The result might be vagueness or ambiguity in understanding. It can lead to mistakes in implementation.

The mistakes, if never corrected, can lead to severe consequences, like confusion and misunderstanding. With errors accumulating over time, it can evolve into a severe crisis you must counter head-on. 

Few or no signals at all

A smoldering crisis is hard to detect because the mistake, policy decision, or indecision that leads to the situation seems harmless at first glance. No one bothered to take a second look. 

Even the best may wonder as to where the things have gone wrong.

Some interpret the grumblings and misunderstandings arising from it as a result of other factors. They never recognize that the decision was a mistake, faulty, or suffering from severe defects. If there are any, the few signals are misinterpreted by those who need to solve the task. 

Result of the organization’s inability to “foresight.”

Missteps occur because those responsible for addressing the mistake never take a deep look at the decision or never take decisive steps regarding it. The organization lacked foresight and failed to recognize that things might become uncontrollable or go out of hand. Neglect may also play a key role, causing them to misrecognize the few signals. 

All actions produce reactions. Therefore, awareness and sensitivity to responses are essential for policymakers and implementors. But they must also anticipate some problems that may arise. They must have the foresight to recognize that things may not go as planned and do something about it. 

How to Prepare for a Crisis Situation and Maintain Control of the Situation While You Handle it

The nature of any crisis, for the most part, is that it is unexpected. But you can prepare for it. How to prepare for an emergency is already part of solving the crisis, whatever type or nature of the crisis may be. Even before the actual situation, preparation could spell the difference between success or failure in handling them. 

Have a crisis management team

The most obvious is to have a crisis management team at all times to handle any crises. You can compose the group according to their expertise, talent, experience, and even availability at all times. The team’s composition may change depending on the circumstances or type of crisis they will handle. 

A crisis management team could go a long way steering the company from dire straits to calm waters.

The crisis management team will handle essential tasks relating to the crisis so as not to affect the everyday affairs of the company or organization. But they must address the situation within a specific period and make recommendations. Depending on the crisis, the time could be from hours to several months. 

The crisis management team need not only work during crises. It can formulate working guidelines, a type of “how to prevent crisis,” and things to do to avoid any problem evolving into an uncontrollable situation. 

Be proactive

A popular adage claim that things could go wrong at the right moment. In essence, this is the nature of all crises. Therefore, organizations must anticipate challenges and problems, even before they arise. 

Every undertaking, like business or organizing, entails some risks. 

Those unforeseen risks which materialize are the usual causes of the crisis. The more an organization takes a proactive stance towards possible risks, making assessments and calculations, the better. Nothing surprises well-prepared organizations, and they will be more adept at handling crises. 

Pay attention to details. 

Part of being proactive is to be sensitive to signals and any information which might indicate the possibility of crisis. Some information is obvious:

• Warnings of coming natural events
• Changes in leadership
• Outlook in economy and politics
•  That information is easily accessible, and the organization can plan based on their knowledge. 

For others, you need to be perceptive and insensitive. For instance, minor disagreements among employees and mounting problems in the workplace usually go under the radar in the field. Those “unimportant” things could be signs of more profound, troubling symptoms that might escalate into a severe crisis. 

Minor problems may become a serious crisis if not addressed.

But if there is already a crisis, paying attention to details becomes more important. You must cover all bases and do everything to address the situation—all information relevant to solving the problem you must possess. You must entertain all possible lines of action for solving the crisis. 

How the Media Affects Your Response during a Crisis Situation

Media is our primary source of information nowadays. They help a lot in informing us of the current situation. The information allows us to prepare for any eventuality. Media coverage of the disaster instructs most people about what a “disaster” looks like or is all about. 

It can have a bearing on society’s actions. Shaping our understanding is how media affects the response to a disaster. They are more relevant than ever now in assessing crises. 

So how can they affect your response? 

Your view of the crisis

For most people, media define the parameters of what things are, including crisis. Media reports impending events, natural disasters, or political instability, depending on its possible impact or outcome. It affects how most of us will respond to a potential situation. 

Your calculated response 

Media can affect your preparation, assessment, and response to the crisis. Based on reports, you can assess the gravity of the situation. You can plan everything based on information emanating from them. Sometimes, it can even tell whether you can do a lot or nothing at all and do it when based on the news emanating from them. 

Planning for a crisis and responding to it depends on the data you have.

The media never lacked people who have a take on certain things. You can take a look at their views of the crisis. Then you can examine and assess them and compare them to your own or to that of your crisis management team.  

Conclusion: How We Can All Prepare for Future Crises

Knowing that not everything will go our way, and some could go wrong, is one way we can prepare ourselves for future crises. Even the best cost risk analysis may go awry. We must look at every possibility, where it may happen, and when, which will go a long way in making us adept at handling future crises. 

Having advanced warning is comparable to arming yourself, paraphrasing a famous adage. It would be best to look at those tell-tale signs that something is wrong or might go wrong. 

Listen also to those who are genuinely knowledgeable and have wisdom. There is a reason why companies and organizations hire teams of experts to assess the viability and feasibility of specific endeavors. You will not get lost listening to the advice of people who may genuinely matter. 

These things we mention, coupled with the preparation for crises discussed above, will make you more than prepared for future emergencies of all types.

References

https://blog.hubspot.com/service/types-of-crisis

https://www.managementstudyguide.com/types-of-crisis.htm

https://www.indeed.com/career-advice/career-development/types-of-crises

https://www.verywellmind.com/what-is-a-crisis-2795061