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Crisis Management with BusinessRiskTV
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Crisis Management Simulation Exercises
Your crisis management plan may only get one real life opportunity to work well. To ensure your investment in your crisis management plan has been worthwhile you need to test it with simulation exercises periodically. The test will enable you to assess the effectiveness of your draft crisis management and recovery plan and make adjustments to be more confident it will work when it really needs to.
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Ask questions of your crisis management and recovery plan before you are criticised of being unprepared for a major risk evenT
Your senior management team needs to interrogate the robustness of the plan under a simulated series of risk events. Few disasters happen with one big isolated action. Most disasters build and many arise from the mismanagement of the initial crisis rather than the occurrence of the initial risk event.
The holding of a crisis management simulation exercise will in itself alert those responsible for implementing the plan to prioritise its upkeep and improve crisis management preparedness.
The crisis simulation should provide those taking part with some information, but leave them asking questions without answers and yet expect them to manage the event to the best possible conclusion.
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What is it you want from your crisis management plan ?
If you do not want to invest time and money in testing your plan you should not have written one in the first place. Without a simulation test exercise you will have probably wasted most of the time and money preparing the plan. It is unlikely to work well during the first test or to put it another way it is unlikely to work well during a major event if it hasn’t been tested at least once.
If you have written a crisis management and recovery plan, you must have identified some value in the project. To get any value out of it it needs to be tested. After it is tested it will provide a valuable tool to help your business survive in the event of a significant incident and perhaps even recover to a stronger level of performance than immediately before the risk event.
Why you should listen
While financial crashes recessions earthquakes and other extreme events appear chaotic Didier Sornettes research is focused on finding out whether they are in fact predictable. They may happen often as a surprise he suggests but they do not come out of the blue. The most extreme risks and gains are what he calls dragon kings that almost always result from a visible drift toward a critical instability. In his hypothesis this instability has measurable technical andor socio economical precursors. As he says Crises are not external shocks.
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