The spectre of crisis looms over every organisation. Whether it’s a natural disaster, a cyberattack, or a sudden economic downturn, disruptions can cripple operations and erode trust. In today’s ever-evolving business landscape, fostering a culture of crisis preparedness within teams isn’t a luxury, it’s a necessity. But what are the building blocks of teams that can navigate turbulent waters and emerge stronger on the other side?
Awareness is the first line of defense
“Crisis preparedness starts with acknowledging that crises can happen anytime,” says Shailesh Singh, senior director and CPO, Max Life Insurance. From economic downturns to unforeseen events such as pandemics, understanding the cyclical nature of business and potential disruptions is paramount. This awareness should permeate all levels of the organisation, from frontline employees to senior management.
“Crisis preparedness starts with acknowledging that crises can happen anytime.”
Shailesh Singh, senior director and CPO, Max Life Insurance
A stark example is the 2017 Equifax data breach. Hackers exploited vulnerabilities, exposing millions of individuals’ data. The fallout was immense, highlighting the importance of robust cybersecurity measures. Equifax, however, serves as a case study in swift crisis response. They acknowledged the breach, alerted stakeholders, and bolstered their infrastructure through stricter protocols and employee training.
In sectors such as financial services, where technology underpins operations, ensuring IT system resilience is critical, says Atul Mathur, EVP & head-L&D, Aditya Birla Capital. Regular checks, maintenance, and remote-work capabilities are essential to maintain smooth functioning in any scenario.
Safety protocols are a cornerstone of any crisis management plan. “Regular training sessions and simulations are crucial to prepare staff for various scenarios,” asserts Ankit Dangi, head-HR, SMAAASH, the Indian gaming and entertainment chain. He emphasises the importance of a robust recovery strategy, outlining procedures for restoring operations and rebuilding trust. These elements combine to form a resilient framework for effective crisis management.
Dangi recounts how SMAAASH swiftly implemented emergency protocols during a power outage, ensuring safe evacuation and clear communication with authorities and patrons, minimising panic and facilitating a swift resolution.
Communication: The lifeline in a crisis
Effective communication is paramount in times of crisis. A clear chain of command ensures prompt and accurate information dissemination. Communication plans should include guidelines for different functions, outlining how each role should respond. Multiple communication modes – digital platforms, messaging systems, and emails – with regular testing, bolster reliability.
“Preparation is only meaningful if it withstands real-world scenarios,” says Singh. Regular drills and tests, simulating cyberattacks or database access loss, help identify weaknesses and refine procedures. This proactive approach ensures the organisation can swiftly adapt to unforeseen challenges.
Crisis management also necessitates a mindset shift. The ability to adapt to new technologies and business models is crucial. Mathur cites the BFSI sector’s shift during the COVID-19 pandemic, where insurance sales transitioned effectively to video calls, challenging the traditional in-person model.
Leadership: The guiding light
Senior leadership plays a pivotal role in crisis preparedness. Organisations should establish processes and manuals that make crisis management a collective responsibility, not reliant on individual expertise, asserts Singh. A crisis-readiness process ensures responses are not person-dependent but rather process-dependent.
“A dedicated department or team responsible for risk assessments is vital. They regularly check and monitor all processes to ensure compliance and identify potential vulnerabilities.
Atul Mathur, EVP & head-L&D, Aditya Birla Capital
The 2018 arrest of Carlos Ghosn, the then-CEO of Nissan, on financial misconduct charges, serves as a cautionary tale. His absence created a leadership vacuum and uncertainty. This underscores the importance of robust succession plans, especially for key leadership positions. Identifying and grooming potential successors ensures a smooth transition in the event of leadership changes, maintaining stability during unforeseen circumstances.
Mathur emphasises the importance of a flexible strategy that can be tweaked as needed to align with the evolving landscape.
Crisis preparedness requires continuous monitoring of internal and external factors affecting the business cycle. Organisations committed to long-term survival institutionalise crisis management, often by establishing a dedicated risk team. This team is responsible for testing the organisation’s resilience and developing strategies for potential crises.
“A dedicated department or team responsible for risk assessments is vital,” advises Mathur. They regularly check and monitor all processes to ensure compliance and identify potential vulnerabilities. In the absence of such teams, leaders across functions have a collective responsibility to stay vigilant and report potential crisis triggers.
“Regular training sessions and simulations are crucial to prepare staff for various scenarios.”
Ankit Dangi, head-HR, SMAAASH
“Staying informed about changes in the macro environment is essential,” asserts Mathur. This necessitates continuous training, seminars, and webinars to keep employees updated on emerging technologies, industry trends, and regulatory changes.
Equipping employees with emergency procedures and protocols, including evacuation and CPR training, empowers them to respond effectively during crises. These activities boost confidence, enhance teamwork and collaboration by fostering communication and a shared sense of purpose in stressful situations.
“Simulated exercises allow organisations to identify areas for improvement and refine their crisis-management strategies,” says Dangi. These simulations help ensure a proactive and well-prepared response to potential crises.
Engaging with experts for best practices
Collaboration with industry experts and regulatory bodies is crucial to ensure alignment with safety standards and best practices. “Organisations should maintain agility in their risk-assessment approach,” says Dangi. This means regularly updating evaluations to accommodate changes, fostering a proactive and comprehensive strategy for crisis prevention and management.
For instance, SMAAASH utilises technology like sensors and surveillance systems to detect early warning signs of equipment malfunctions or safety concerns. Additionally, they have established feedback mechanisms that encourage employees and customers to report any safety or security issues promptly.
Crisis preparedness isn’t a one-time event; it’s an ongoing process. By fostering a culture of awareness, effective communication, and continuous learning, organisations can build teams that can weather any storm. Investing in crisis preparedness not only safeguards the organisation from potential disruptions but also fosters trust and resilience – valuable assets in today’s dynamic and unpredictable business world