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IBBusinessDPBusiness ManagementHLFlashcards5. Operations Management5.7 Crisis Management & Contingency Planning

5.7 Crisis Management & Contingency Planning (DP IB Business Management)

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    What is crisis management?

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  • What is crisis management?

    Crisis management is the immediate handling of a disruptive and unexpected event.

  • True or False?

    Crisis management is the same as contingency planning.

    False.

    Crisis management refers to the immediate handling of a disruptive event, while contingency planning is the process of predicting and planning for potential risks.

  • Give two examples of crisis situations.

    Examples of crisis situations include:

    • Loss of key staff

    • IT systems failure

    • Natural disaster

    • Theft

    • Terrorism/war

    • Infectious disease outbreak

  • Define contingency planning.

    Contingency planning involves predicting risky or unwanted events, and developing a process for how the business will respond to any such event.

  • Define business resilience.

    Business resilience is the ability of a business to withstand and recover from disruptions and crises.

  • What are the four key factors that influence effective crisis management?

    The four key factors that influence effective crisis management are:

    • Speed

    • Transparency

    • Control

    • Communication

  • How can transparency protect a business's reputation during a crisis?

    Transparency can protect a business's reputation during a crisis as customers are kept informed.

  • True or False?

    Crises are usually large-scale events.

    False.

    Even smaller incidents, like the unexpected loss of a CEO or a warehouse fire, can cause a significant crisis.

  • What is involved in a risk assessment?

    A risk assessment involves evaluating potential disruptions and their impacts.

  • True or False?

    Evacuation plans are rarely communicated or practiced in contingency planning.

    False.

    Evacuation plans are communicated and practiced regularly as part of contingency planning.

  • True or False?

    A common preventative measure is the testing of alarm systems.

    True.

    A common preventative measure is the testing of alarm systems.

  • True or False?

    Contingency planning can eliminate all risks of business disruption.

    False.

    Contingency planning cannot eliminate the risk of business disruption, but it can improve business resilience and reduce negative impacts.

  • How can contingency planning reduce costs?

    Contingency planning can reduce costs by allowing emergency resources to be purchased in advance, potentially lowering financial losses during a crisis.

  • How does contingency planning address risk?

    Contingency planning addresses risk by considering the most likely threats in detail and reducing legal risks if procedures are followed.

  • True or False?

    Few businesses need to engage in contingency planning.

    False.

    It is generally advisable for all businesses to engage in some level of contingency planning, such as creating evacuation plans and structures for business continuity.

Previous:5.6 Production PlanningNext:5.8 Research & Development (R&D)

    1. Topic 1

      1.1 What is a Business?

    2. Topic 2

      1.2 Types of Business Entities

    3. Topic 3

      1.3 Business Objectives

    4. Topic 4

      1.4 Stakeholders

    5. Topic 5

      1.5 Growth & Evolution

    6. Topic 6

      1.6 Multinational Companies (MNCs)

    1. Topic 1

      2.1 Introduction to Human Resource Management

    2. Topic 2

      2.2 Organisational Structure

    3. Topic 3

      2.3 Leadership & Management

    4. Topic 4

      2.4 Motivation & Demotivation

    5. Topic 5

      2.5 Organisational (Corporate) Culture

    6. Topic 6

      2.6 Communication

    7. Topic 7

      2.7 Industrial Relations

    1. Topic 1

      3.1 Introduction to Finance

    2. Topic 2

      3.2 Sources of Finance

    3. Topic 3

      3.3 Costs & Revenues

    4. Topic 4

      3.4 Final Accounts

    5. Topic 5

      3.5 Profitability & Liquidity Ratio Analysis

    6. Topic 6

      3.6 Efficiency Ratio Analysis

    7. Topic 7

      3.7 Cash Flow

    8. Topic 8

      3.8 Investment Appraisal

    9. Topic 9

      3.9 Budgets

    1. Topic 1

      4.1 Introduction to Marketing

    2. Topic 2

      4.2 Marketing Planning

    3. Topic 3

      4.3 Sales Forecasting

    4. Topic 4

      4.4 Market Research

    5. Topic 5

      4.5 The Marketing Mix (7 P's)

    6. Topic 6

      4.6 International Marketing

    1. Topic 1

      5.1 Introduction to Operations Management

    2. Topic 2

      5.2 Operations Methods

    3. Topic 3

      5.3 Lean Production & Quality Management

    4. Topic 4

      5.4 Location

    5. Topic 5

      5.5 Break-Even Analysis

    6. Topic 6

      5.6 Production Planning

    7. Topic 7

      5.7 Crisis Management & Contingency Planning

    8. Topic 8

      5.8 Research & Development (R&D)

    9. Topic 9

      5.9 Management Information Systems

    1. Topic 1

      6.1 The Business Management Toolkit