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an organization knows, anticipates, and plans for, but just as much because of what
it does not know and does not anticipate.
2.4 Assignments
2.4.1 Use the table and classify the major crisis types and risks:
Major Crisis Types and Risks:
Economic crisis Informational crisis Physical crisis
Labor unrest
False information
Breakdown of key
equipment, plants.
Labor shortage
Tampering with computer
records
Loss of key facilities
Major decline in stock
price and fluctations;
Market crash; Decline in
major earnings.
Loss of key computer
information with regard
to customers, supplies.
Major plant disruptions
Labor strike
Loss of proprietary and
confidential information.
Loss of key equipment,
plants, and material supplies.
3 Unit 3 Crisis definition
3.1 Read Text A and give the crisis definition. Answer the questions
making use of the table given below the text.
Organizations also need to consider that even when they have prepared for a
particular type of crisis and a specific form of it, major crises will still occur
because of constantly emerging new environmental factors that give a new wrinkle
to old forms. At this point, it is important to say a few words about the definition of
a crisis. Definitions are only really important with regard to the purpose they serve.
Unfortunately, it is not possible to give a precise and general definition of a crisis
any more than it is possible to predict with exact certainty how a crisis will occur,
when it will occur, and why. Nonetheless, a "guiding definition" is that a crisis is
an event that affects or has the potential to affect the whole of an organization. Thus,
if something affects only a small, isolated part of an organization, it may not be a
major crisis.
In order for a major crisis to occur, it must exact a major toll on human
lives, property, financial earnings, the reputation, and the general health and
well-being of an organization. More often than not, these occur simultaneously.
That is a major crisis is something that “cannot be completely contained within
the walls of an organization.” Although they are rare, a few crises, such as the one at
Barren's Bank a few years ago, have the potential to destroy a whole organization. And,
8
an organization knows, anticipates, and plans for, but just as much because of what it does not know and does not anticipate. 2.4 Assignments 2.4.1 Use the table and classify the major crisis types and risks: Major Crisis Types and Risks: Economic crisis Informational crisis Physical crisis Breakdown of key Labor unrest False information equipment, plants. Tampering with computer Labor shortage Loss of key facilities records Major decline in stock Loss of key computer price and fluctations; information with regard Major plant disruptions Market crash; Decline in to customers, supplies. major earnings. Loss of proprietary and Loss of key equipment, Labor strike confidential information. plants, and material supplies. 3 Unit 3 Crisis definition 3.1 Read Text A and give the crisis definition. Answer the questions making use of the table given below the text. Organizations also need to consider that even when they have prepared for a particular type of crisis and a specific form of it, major crises will still occur because of constantly emerging new environmental factors that give a new wrinkle to old forms. At this point, it is important to say a few words about the definition of a crisis. Definitions are only really important with regard to the purpose they serve. Unfortunately, it is not possible to give a precise and general definition of a crisis any more than it is possible to predict with exact certainty how a crisis will occur, when it will occur, and why. Nonetheless, a "guiding definition" is that a crisis is an event that affects or has the potential to affect the whole of an organization. Thus, if something affects only a small, isolated part of an organization, it may not be a major crisis. In order for a major crisis to occur, it must exact a major toll on human lives, property, financial earnings, the reputation, and the general health and well-being of an organization. More often than not, these occur simultaneously. That is a major crisis is something that “cannot be completely contained within the walls of an organization.” Although they are rare, a few crises, such as the one at Barren's Bank a few years ago, have the potential to destroy a whole organization. And, 8
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