Situational Assessment
When an organization or business recognizes a crisis is occurring, the first step is to convene the Crisis Management Team (Crandall and Spillan, 2013). Once the team has been assembled, an overview of the situation must be obtained. The Crisis Management Team (CMT) has to review all the information, events, and knowledge regarding the crisis. This review and processing of information is considered the situational assessment. Through the situational assessment, the CMT is gain awareness of the crisis and help predict the direction in which it will evolve.
Situational Assessment Examples An example of an impending crisis is the 2016 exposure of Wells Fargo employees opening false accounts. Employees at Wells Fargo …show more content…
Mistakes in assessing the entire crisis and gaining full knowledge of its outreach had significant impacts on both organizations. By making the mistake of trying to keep both crisis quiet and covered up, the public outcry did significant damage to both companies reputations. Both companies have been forced to pay significant monies in legal fees, fines, lawsuit settlements, and consumer fees. In addition, both CEO’s stepped down amongst the crisis and severance packages were offered upon their departures. Both companies have had to work tirelessly to try and contain the damage to their companies, reputations, and stock …show more content…
(2017, May 23). Target to Pay $18.5 Million to 47 States in Security Breach Settlement. The New York Times. Retrieved May 24, 2017, from https://www.nytimes.com/2017/05/23/business/target-security-breach-settlement.html?_r=0
Crandall, W, Parnell, J. & Spillan, J. (2013). Crisis Management In The New Strategic Landscape. Thousand Oaks, CA: Savant Learning Systems.
Matthews, C., & Heimer, M. (2016, December 28). The 5 Biggest Corporate Scandals of 2016. Fortune. Retrieved May 24, 2017, from http://fortune.com/2016/12/28/biggest-corporate-scandals-2016/
Ross, B., Rhee, J., Hill, A. M., Chuchmach, M., & Katersky, A. (2014, March 19). Toyota to Pay $1.2B for Hiding Deadly ‘Unintended Acceleration’. ABC News.
When an organization or business recognizes a crisis is occurring, the first step is to convene the Crisis Management Team (Crandall and Spillan, 2013). Once the team has been assembled, an overview of the situation must be obtained. The Crisis Management Team (CMT) has to review all the information, events, and knowledge regarding the crisis. This review and processing of information is considered the situational assessment. Through the situational assessment, the CMT is gain awareness of the crisis and help predict the direction in which it will evolve.
Situational Assessment Examples An example of an impending crisis is the 2016 exposure of Wells Fargo employees opening false accounts. Employees at Wells Fargo …show more content…
Mistakes in assessing the entire crisis and gaining full knowledge of its outreach had significant impacts on both organizations. By making the mistake of trying to keep both crisis quiet and covered up, the public outcry did significant damage to both companies reputations. Both companies have been forced to pay significant monies in legal fees, fines, lawsuit settlements, and consumer fees. In addition, both CEO’s stepped down amongst the crisis and severance packages were offered upon their departures. Both companies have had to work tirelessly to try and contain the damage to their companies, reputations, and stock …show more content…
(2017, May 23). Target to Pay $18.5 Million to 47 States in Security Breach Settlement. The New York Times. Retrieved May 24, 2017, from https://www.nytimes.com/2017/05/23/business/target-security-breach-settlement.html?_r=0
Crandall, W, Parnell, J. & Spillan, J. (2013). Crisis Management In The New Strategic Landscape. Thousand Oaks, CA: Savant Learning Systems.
Matthews, C., & Heimer, M. (2016, December 28). The 5 Biggest Corporate Scandals of 2016. Fortune. Retrieved May 24, 2017, from http://fortune.com/2016/12/28/biggest-corporate-scandals-2016/
Ross, B., Rhee, J., Hill, A. M., Chuchmach, M., & Katersky, A. (2014, March 19). Toyota to Pay $1.2B for Hiding Deadly ‘Unintended Acceleration’. ABC News.