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The Difference Between Risk and Crisis Communication

Timing and nature differentiate risk communication from crisis communication. The objective of risk communication is to anticipate and share information about potential hazards and risks prior to them turning into crises. It attempts to educate and enlighten parties about possible dangers, their likelihood, and possible ways to mitigate them. Typically, communicating risks is a more deliberate and organized process with the goals of establishing trust, controlling expectations, and improving readiness (Palenchar, 2020). Crisis communication, on the contrary hand, entails handling and reacting to unanticipated incidents or circumstances which have an opportunity to negatively impact the image of a business, activities, or stakeholders (Palenchar, 2020). It includes dealing with the immediate needs and issues of stakeholders throughout a crisis, sharing punctual and precise details, controlling public perception, and reducing negative consequences. Communication during emergencies is reactionary, which frequently demands quick decision-making as well as successful collaboration for successfully handling the issue at hand.

A recent memorable organizational crisis and how it relates to the Mitroff reading.

The Boeing 737 Max crisis is a significant organizational crisis that took place recently. Two incidents featuring the Boeing 737 Max happened in 2018 and 2019, leading to the demise of many lives. MCAS, or the Manoeuvring Characteristics Augmentation System, was a faulty automated flight management system which led to the crisis. The accidents caused a global suspension of the 737 Max fleet and caused major worries surrounding Boeing’s safety practices and oversight from regulators (Jong & Broekman, 2021). The Boeing 737 Max crisis has numerous connections to the Mitroff interpretation. Mitroff underlines the importance of readiness and the need for companies to anticipate possible emergencies and create efficient crisis management methods. In the instance of Boeing, the crisis exposed flaws in its risk-management procedures, particularly with regard to identifying and mitigating possible hazards related to the MCAS system. It demonstrated a lack of successful communication during crises, as the distribution of information to partners was delayed and erratic, leading to a loss of trust and credibility.

The likelihood of an organization facing a crisis.

The likelihood of a company having a crisis can vary depending on aspects such as its sector of business, size, outside circumstances, and internal exercises. Crises may arise from an array of factors, such as catastrophes caused by nature, technological failures, recalls of goods, cybersecurity flaws, leadership controversies, and reputational issues. While it is problematic to foresee specific crises, it is generally accepted that all companies confront a certain amount of risk and are vulnerable to crises at different points of their lifecycle. Due to the essence of their activities, companies that operate in sectors with elevated risks, such as healthcare, energy, transport, and finance, may be more inclined to encounter a crisis. In addition, companies that need to emphasize managing risks, crisis preparedness, and efficient communication techniques are more prone to disasters. However, organizations that handle risks and prepare for emergencies proactively can still face unexpected occurrences or circumstances that could give rise to emergencies. Therefore, companies must adopt an anticipatory and thorough approach to risk administration and crisis communication in order to enhance their capacity for resilience and reduce any adverse consequences (Farndale et al., 2019).

References

Farndale, E., Horak, S., Phillips, J., & Beamond, M. (2019). Facing complexity, crisis, and risk: Opportunities and challenges in international human resource management. Thunderbird International Business Review61(3), 465–470.

Jong, W., & Broekman, P. (2021). Crisis history and hindsight: A stakeholder perspective on the case of Boeing 737-Max. Public Relations Inquiry10(2), 185-196.

Palenchar, M. J. (2020). Historical trends of risk and crisis communication. In Handbook of risk and crisis communication (pp. 31-52). Routledge.

 

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