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3 Prevalent Types of Corporate Crisis Situations

company crisis near Miami

Throughout the years, there are many different types of crises your company can face. Today, GLAC Consulting wants to make sure you are aware of five of them. Dealing with a company crisis is never easy, so it is best you are prepared. We specialize in risk analysis and are conveniently located near Miami. 

 

5 Types of Crisis

  • Financial Crisis
    • A financial crisis occurs when a business loses value in its assets and the company can’t afford to pay off its debt. Typically, this is caused by a significant drop in demand for the product or service. In these cases, the company must move funds around to cover immediate short-term costs. Then, they’ll need to reanalyze their revenue sources to look for new ways to generate long-term income as well as increase their margins.
  • Personnel Crisis
    • Personnel crises occur when an employee or individual who’s associated with the company is involved in unethical or illegal misconduct. Whether it’s within the workplace or an employee’s personal life, these situations can result in a serious backlash against the company. Since the organization employed or supported this individual, their lack of judgment is reflected onto the company’s reputation.
    • In these cases, you’ll need to identify the scope of the situation, determine appropriate disciplinary action, and if necessary, provide a written or verbal statement. It’s important to first fully evaluate the situation and determine how severely the individual violated your company’s values. This will help you determine the right responsive action to take against the convicted individual. Finally, if this situation has drawn media attention, you’ll want to be transparent to these outlets and inform them about the actions you’re taking.
  • Organizational Crisis
    • Organizational crises are situations where the company has significantly wronged its consumers. Rather than creating mutually beneficial relationships, these businesses used their customers as a means of benefiting the company. This type of crisis includes misconduct like withholding information, exploiting customers, and misusing managerial powers.
    • Changing company culture is the best way to address organizational crises because these problems are typically caused by employees who neglect customer needs. Embracing an organizational culture that’s dedicated to customer success can reduce the chances of encountering an internal crisis. Additionally, backing this type of environment should result in the hiring of employees who are closely aligned with your company’s values.
  • Technological Crisis
    • In today’s tech-driven age, businesses heavily rely on technology to perform their day-to-day functions. So when that technology crashes, they have a lot more to worry about than a few missing emails. Ecommerce sites and software companies can lose millions of potential leads if their servers suddenly break. That’s not only a huge loss of potential revenue, but it’s also a major hit to the product or service’s reputation.
    • The first step to managing these crises is to work with your IT or tech provider to resolve the issue immediately. Your primary concern should be to prevent the issue from affecting any more customers. Once your software is back online, the next step is to work with your internal resources to determine what happened to your system and set up safeguards to prevent it from occurring again. Boost up your customer service and customer support teams to make sure they’re ready to handle a sudden spike in calls from angry or confused customers.
  • Natural Crisis
    • If an earthquake destroys your office, you might call that a crisis. While it may be rare, natural disasters like hurricanes, earthquakes, and tornados can make a significant impact on your business. If your company is located in an area that’s exposed to extreme weather, you’ll need to prepare an emergency response in the unfortunate event that you’re affected.
    • The best way to handle natural crises is to be proactive. Build your office in a structure that’s resilient to weather in your area and prepare an evacuation plan in the event of an emergency. It will also help to prepare a contingency plan for business operations in case your offices become unavailable.

 

We Can Avoid Company Crisis

 We are a corporation that integrates renowned experience and knowledge in security consulting, technology, and risk management; with internationally prestigious consultants with more than 20 years of service in public safety, national security, and intelligence. 

 

Includes a focus on identifying security vulnerabilities and threats, as well as crisis management through risk management and assessment with the purpose of minimizing impacts of current threats to the aviation industry.

 

Call Us For Risk Analysis

Stay on top of a company crisis with our global security services. Here at GLAC Consulting, you are our priority. Trust one of the top cybersecurity companies. Our mission is to Integrate knowledge, experience, and cutting-edge technology to decision making that involves basic security, technology, and risk control solutions as well as enterprise risk management for the private sector and the public sector. Our vision is to contribute to the strategic decisions that transform the world of security, keeping our customers at the forefront in technology and project development. We value professional services with Integrity. We offer cybersecurity services, too. Visit our office near Miami to get all the advice you need to protect you against the next data breach. Call us for a risk analysis today.