What is a business crisis?
Understand the different types of crises your business could face, and the role of crisis management in preventing disruption.
A business crisis is a sudden event that seriously disrupts your operations. It often requires quick decisions and can pose significant risks to your business.
Types of business crises
Businesses can face many different types of crises, including:
- natural disasters - such as flooding or storms
- technology failures - including IT outages, system failures or cyber attacks
- accidents - such as fires, gas leaks or power cuts
Additional risks that can disrupt your business include:
- theft or vandalism - causing loss or damage to equipment or property
- power cuts or fuel shortages - affecting operations or transport
- loss of access to premises - for example, due to emergencies or safety issues
- staff shortages - caused by illness or loss of key employees
- disease outbreaks - which may lead to closures or restrictions
- security threats - such as terrorist incidents
- supply chain disruption - resulting in difficulty sourcing materials or goods
- customer issues - reduced demand or inability to deliver services
- reputational damage - for example, from product recalls or social media issues
Even unlikely risks should be considered. Planning ahead helps reduce disruption and improve recovery. You should carry out a business impact analysis to determine how a crisis may affect you.
Manage and respond to crises
Crisis management is the process of preparing for, responding to and recovering from business disruptions. It focuses on reducing damage, maintaining operations and restoring normal business activity as quickly as possible. Crisis management can be especially important in the area of public relations.
Find out how to minimise the potential impact of crises.