PART IV

CRISIS
Introduction
This topic examines the nature of crises, focusing on the different types of crises that organizations
may face, effective strategies for handling crises, and the stages of the crisis cycle.
Objectives
By the end of this topic you should be able to:
1. Identify and categorize different types of crises.
2. Develop and implement strategies for effectively handling crises.
3. Understand the stages of the crisis cycle and how to navigate them.
Topic Resources
1. Edwards D., Kevin E. & Kelly L. (2018). Out of the Crisis (5th.ed).London: Palgrave Macmillan.
2. Dr. Kristi K., (2020). A Guide to Crisis Intervention (1st. ed): Sage Publishers.

1. Types of Crises
Crises can vary widely in nature and impact. Understanding the different types of crises can help
organizations prepare and respond effectively. Some common types of crises organizations may face
include:
1. Natural Disasters:
o Events such as earthquakes, hurricanes, floods, etc., can severely disrupt operations,
damage physical assets, and impact employee safety.
o Example: The 2011 earthquake and tsunami in Japan, which led to the Fukushima nuclear
disaster.
2. Financial Crises: Situations where an organization faces severe financial instability or
bankruptcy.
o Economic downturns, fraud, bankruptcy, or financial mismanagement can lead to
severe financial instability, stock price declines, and regulatory scrutiny.
o Example: The 2008 financial crisis, which led to the collapse of major financial
institutions.
3. Technological Crises: Failures or malfunctions in technology that can disrupt operations and
pose safety risks.

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 o Cyberattacks, data breaches, or technology failures can compromise sensitive data,
impact service delivery, and harm customer trust.
o Example: The 2017 Equifax data breach, which exposed the personal information of
millions of people.
4. Reputational Crises:
o Scandals, unethical behavior, or negative media coverage (e.g., bad customer
experiences or controversial actions) can lead to a loss of public trust.
5. Product or Service Failures:
o Issues such as defective products, product recalls, or failure to meet customer
expectations can lead to a crisis of credibility and potential harm to consumers. Last
point
6. Legal or Regulatory Crises:
o Lawsuits, violations of regulations, or government investigations can expose an
organization to legal and financial risks.
7. Accidents or Incidents:
o Workplace accidents, product defects causing harm, or any event that leads to injury or
harm to individuals can trigger a crisis.
8. Human Resource Crises:
o Employee misconduct, strikes, or publicized internal disputes can lead to damage to the
organization's culture and reputation.
• Organizational Misdeeds: Actions by an organization or its employees that are unethical or
illegal, leading to public outrage and loss of trust.
o Example: The Volkswagen emissions scandal, where the company was found to have
manipulated emissions tests.
• Workplace Violence: Incidents of violence or threats within the workplace that can endanger
employees and disrupt operations.
o Example: The 2015 San Bernardino shooting, which occurred at a workplace holiday
party.
OTHER TYPES OF CRISIS
1. Political Crises: Situations where political instability or conflict disrupts normal
operations.

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 ✓ Ministry of Foreign Affairs: Manages political crises and international relations.
2. Health Crises: Outbreaks of diseases or pandemics that affect large
populations.
✓ Ministry of Health: Responsible for health crises, including disease outbreaks and pandemics.
3. Environmental Crises: Issues like pollution, deforestation, or climate change
that have long-term impacts.
✓ Ministry of Environment and Forestry: Manages environmental crises such as pollution and
deforestation.
4. Supply Chain Crises: Disruptions in the supply chain that affect the
availability of products or services.
✓ Ministry of Industrialization, Trade and Enterprise Development: Deals with supply
chain crises and product or service failures.
5. Cybersecurity Crises: Breaches or attacks on digital systems that compromise
data and operations.
✓ Ministry of Information, Communications and Technology (ICT): Handles technological
crises, including cybersecurity issues.
6. Social Crises: Events that cause widespread social unrest or upheaval.

In Kenya, various ministries and agencies are responsible for managing different types of crises. Here's a
breakdown:
1. National Disaster Management Unit (NDMU): This unit, under the Ministry of Interior
and Coordination of National Government, handles natural disasters, accidents, and incidents
2. Ministry of Health: Responsible for health crises, including disease outbreaks and pandemics.
3. Ministry of Environment and Forestry: Manages environmental crises such as pollution and
deforestation.
4. Ministry of Information, Communications and Technology (ICT): Handles technological
crises, including cybersecurity issues.
5. Ministry of Finance: Manages financial crises and economic stability.
6. Ministry of Industrialization, Trade and Enterprise Development: Deals with supply
chain crises and product or service failures.
7. Ministry of Labour and Social Protection: Handles human resource crises and social crises.

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 8. Ministry of Foreign Affairs: Manages political crises and international relations.

2. Handling Crises
Effective crisis management involves a combination of preparation, communication, and swift action.
Here are some key strategies for handling crises:
Examples:
• Preparation: Developing a comprehensive crisis management plan that outlines roles,
responsibilities, and procedures for different types of crises.
o Example: A company creating an emergency response plan for natural disasters,
including evacuation procedures and communication protocols.
• Communication: Maintaining clear, consistent, and transparent communication with all
stakeholders during a crisis.
o Example: A company issuing regular updates to employees, customers, and the media
during a data breach to keep them informed and address concerns.
• Swift Action: Taking immediate and decisive action to mitigate the impact of the crisis and
prevent further damage.
o Example: A company recalling a defective product as soon as the issue is identified to
protect consumers and maintain trust.
3. Crisis Cycle
The crisis cycle refers to the stages that an organization goes through during a crisis. Understanding
these stages can help organizations navigate crises more effectively.
Stages:
• Pre-Crisis: The period before a crisis occurs, where organizations focus on prevention and
preparation.
o Example: Conducting regular risk assessments and crisis simulations to identify potential
threats and improve readiness.
• Crisis Event: The period during which the crisis occurs and immediate response actions are
taken.
o Example: Activating the crisis management plan and communicating with stakeholders
as soon as a crisis is detected.

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 • Post-Crisis: The period after the crisis has been managed, where organizations focus on
recovery and learning.
o Example: Conducting a post-crisis evaluation to assess the effectiveness of the response
and identify areas for improvement.
Conclusion
Understanding the types of crises, effective strategies for handling crises, and the stages of the crisis
cycle is essential for effective crisis management. By being prepared, communicating clearly, and taking
swift action, organizations can navigate crises more effectively and maintain trust and credibility.

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