Contemporary business world is full of unpredictable situations, when a company has to face emergencies and problems posing a threat to the sustainability of the company’s performance. It may create an imbalance in the company’s functioning in the form of damaged manufacturing cycle or financial malfunction. Numerous companies need to develop an appropriate plan of actions that considers all aspects of the company’s performance and its market conditions. The company’s performance has a comprehensive system of factors contributing to the development of the company. In case of emergency, this system may face various damages and lead the company to the loss of valuable resources. If the company does not have an appropriate system of measures in the prospect of risk and crisis management, it is most likely to lose its sustainability and reach the point of self-destruction.
Risk and crisis management implies that the company uses the diversity of communication channels. It means that communication is one of the essential elements in the performance of the company. When it comes to emergencies, it is necessary to have a plan of actions activating all communication channels at the same time.
It is necessary to mention that communication is an element of many crisis and risk management theories helping to avoid misunderstandings and return to balance in the company’s performance.
Evaluation of Success
Success does not come along without support of theoretical basement. The main traces of the response include decision theory, excellence theory, a theory of image restoration, and apologia theory. To understand the importance of applying appropriate system of measures, it is necessary to look at every theory from the perspective of the problem and the company’s response to its elimination.
Decision theory is an approach to dealing with the problem applying the algorithm of actions leading to the achievement of improved outcomes. Correct decision should not only help to reduce the problem, but also maintain balance avoiding the same mistakes in the future. There is no formula for effective decision-making as long as every situation has its peculiarities. An art of decision-making process in the prospect of crisis and risk management means that the company can produce an effective plan of actions, which can fix the problem immediately. When a company is ready to face the problem, it does not waste time, which can destroy its image and reputation.
The excellence theory is an approach towards the elimination of the problem by means of public relations, which determine the company’s reputation and image. According to the concept, the company should have a balance between expectations of its customers and the development of the performance process. This theory considers that not only reputation has a direct influence on the company’s performance, but also business environment, organizational effectiveness and conditions defining the company’s course of development. Public relations are an essential element building the core of the company’s successful performance. It is an element contributing to the development of an effective system of measures and techniques, which help the company to maintain balance between its performance and public opinion.
A theory of image restoration is another part of the process aimed to eliminate the problem and help the company take care of its further development by means of communication. Image restoration theory has two segments of influence. First, it means that communication is the best option of the activity with the diversity of goals. It considers the fact that it is impossible to perform effectively without the system of communication channels allowing the company to grow and develop. The second part of the theory states that it is necessary to maintain a positive reputation in order not to lose the position on the market.
A comprehensive approach towards the elimination of the problem is one of the most helpful techniques to reach another level of development. A comprehensive approach means that it is possible to maintain balance between the performance and various unexpected emergencies, which may create stressful situations. However, there will be a plan of actions, which will speed up the response to the problem.
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