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What is a crisis?
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What is Crisis Management?
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1. A crucial or decisive point or situation; a turning point.
2. An unstable condition, as in political. social, or economic affiars, involving an impending abrupt or decisive change.
3. A sudden change in the course of a disease or fever, toward either improvement or deterioration.
4. An emotionally stressful event or traumatic change in a person's life.
5. A point in a story or drama when a conflict reaches its highest tension and must be resolved.*
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For a business enterprise, a crisis is any event that threatens its reputation, operations or assets. What all crisis events have in common is that they represent a crucial turning point for leadership and decision-making in an organization.
We have advised our clients on, and helped them manage through, a wide variety of crisis events—including:
- Sudden changes in corporate governance
- Contests for corporate control
- CEO succession
- Management turmoil
- Financial malfeasance
- Corporate litigation and class action litigation
- Criminal investigations, indictments, and convictions of key executives
- Regulatory investigation and sanctions by SEC, FDA, US Attorney, state attorneys general, banking and insurance regulators
- Stock market activity and shareholder activism
- Hostile takeover defense, mergers, acquisitions, recapitalizations
- Accounting irregularities, changes in accounting treatment, financial restatements
- Product safety issues, product failures, and recalls
- Bankruptcy, financial restructurings
- Labor unrest
- Attack by consumer activists, gadflies, determined adversaries, and attention-seekers
- Workplace issues including allegations of racial discrimination and sexual harassment
- Natural disasters
- Special events vulnerabilities
- Terrorist attacks
- Foreign Corrupt Practices Act concerns
- Business ethics, corporate responsibility, corporate human rights, and compliance
- Intellectual property disputes
- Workplace violence and fatalities
- Advertising and marketing mis-steps and mishaps, and endorsement by controversial celebrities
- Violation of securities laws, Regulation FD
- Technology failures
- Embedded journalists and combat visibility
*Source: The American Heritage Dictionary of the English Language, Fourth Edition, 2000, by Houghton Miflin Company.
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