Abstract
This study looked at the effects of various approaches to strategic planning and crisis management on businesses. Since it was reviewed in light of previously published research, the approach adopted was theoretical. According to the findings of the research, better crisis management is made possible by strategic planning. When it comes to a particular tragedy, the kind of crisis management technique used will have a significant impact on its severity. Because crisis management is handled strategically, companies that are proactive in dealing with crises are more likely to succeed. Having a crisis management team that can respond swiftly and strategically is the greatest way for any organization to withstand a crisis with the least amount of harm. Preparedness for the unforeseen changes that may occur before, during, or after a crisis is an essential part of crisis management training. Key Words: Strategic Planning, Crisis Management Style, Pandemic, Coronavirus, incorporate, organization
Introduction
A company’s long-term goals and objectives are defined and updated via strategic planning by its vision for the future. Creating a short-term comprehensive firm strategy is not the same as strategic planning, which is the focus of this article (e.g., one or two years). To make sure that the company’s activities are by its stated objectives, it is critical to develop a business plan that is linked to the strategic plan.
Here, the term Enterprise Risk Management has been defined so that everyone can agree on what it means. ERM is described by the Casualty Actuarial Society (CAS) as a discipline for measuring, managing, exploiting, financing, and monitoring risks from all sources to maximize the value of a firm to its stakeholders (Steiner et al., 2010). ERM’s strategic and financial dimensions are mentioned as an important component of this concept.
A company’s strategic plan should incorporate the organization’s risk criteria. A company’s business plan should clearly state the acceptable levels of risk. Risk parameters (sometimes referred to as risk tolerances or risk limits) are an essential part of an ERM system (Bryson et al., 2018). There must be a balance between a company’s risk appetite and strategy. Consequently, risk management and strategic planning are intertwined.
Managing risk at the corporate level should be a core value proposition for every firm. The goal of strategic planning is to establish a company model that will succeed despite the perceived dangers. In strategic planning, “risk is an opportunity,” maybe more so than in any other field. In contrast to day–to–day business risks, which an organization faces, strategic risks are longer-term and more expansive, and hence may be better prepared for and exploited (Gasmi et al., 2020). Strategic planning is a proactive endeavor (as risk management should ideally be). For a competitive advantage, it may transform the company’s future.
The Institute of Management Accountants has a more succinct statement: Instead of being considered separate endeavors, ERM and strategy formulation should be seen as a means to a goal. An incomplete strategy, ripe for failure, results when little consideration is given to analyzing and controlling the inherent risks in the approach (Boyne et al, 2010). It’s important to have a procedure in place to identify and analyze strategic risks, as well as to monitor and report on those risks, as part of a comprehensive approach to risk management that includes all the above.
Strategic risk management is linked with strategic planning. In reality, they are the same. To protect the company model, strategic planning is necessary. Strategic risks must be identified, assessed, and addressed using well-defined procedures. A robust ERM framework will include a wide range of procedures that are separate from those used to manage business risks.
Methodology
Phase one of the research process is called “Identifying” since this is when the research challenges and procedures are broken down and identified. The most important result is a solid theoretical foundation for the next step of the process. ‘
When the Intervention commander arrives at the location where a subject is suspicious of the existence of B-agents or toxins, intervention starts from his or her point of view. The Intervention commander immediately evaluates the situation. In the event of danger, the commander of the intervention decides on the organization of the intervention and future cooperative operations. Medical help is provided to victims and rescue workers via the coordination of EMS (George et al., 2019). Concurrently with this operation, intervention units conduct decontamination, disinfection, and medical examinations of persons in the impacted region, particularly questionable objects and locations. The intervention commander stops the operation after all of these tasks are completed. The customary IRS interference has come to a stop for the time being.
The next step is to do some modeling. In response to the prior idea, a process model has been developed. Simulating and optimizing processes is also possible at this phase of the project. The results of a computer simulation may be compared to the results of leading the user through the bottleneck checks to see whether the various steps are working the procedure is modeled after the user’s needs wishes. As a consequence of this stage, confirmed, validated, and Simulated processes’
To set up the process model, you must do the following: to begin with, particular procedures must be added to Data types, particularly in their reduced version. These Processes and activities are traversed by forms. includes additional details in their remit. Here, we’re in the midst of the process. Making is also a part of a process-oriented technique. metrics used to measure performance model that will keep track of and assess the procedure has been implemented (Kersulić et al., 2018). As a result of this, it is possible to implement instances of Automated operations that need a change in the data format. transforms into a computer-readable format processable.
Business Processes are used for this. Executive Language (BPEL) is used. The product. Afterward, the process is installed on a process server. Execution/Monitoring is critical to the success of a project. perform, monitor, and visualize the processes instance-specific conditions of the process The system is always being monitored a procedure is a crucial part of delivering dependable and up-to-date information instance processing. Priority is given to the most critical modules.
Optimization is the last step. The fundamentals of data from processes that are being monitored are in this phase. These tools are used to examine and improve business processes and the code that makes them work. Logs of the actions that were taken. business activity monitoring is used to analyze the results and the use of process mining (Baryannis, et al., 2019). These are the methods. determine the level of process quality. models and the execution environment’s suitability, for example, a company activity monitoring system might be used. demonstrate that a certain task takes an excessive amount of time as a result of a lack of funds to carry it out.
Acceptance of danger
Risk acceptance refers to a person’s willingness to accept a risk without making any attempt to lessen it. There’s no way to lessen or eliminate a threat once it arises, but that’s not necessarily a bad thing. Accepting the risk is the best option when risk mitigation is more expensive than the danger itself. It doesn’t make sense to spend £200,000 to safeguard against a £20,000 danger. However, there is a risk to this strategy. With a strategy in place, you’ll be ready for whatever comes your way if and when it occurs. As a result, taking risks should only be done in circumstances where the consequences would be minimal if they were to occur.
There is a transfer of risk.
Using a contract, an organization may shift risk to a third party, which will then face the cost as if they were the original party. The risk may be transferred, but it cannot be eliminated. There is still a risk, but you and your company no longer have any responsibility for it (Fan et al, 2018). Travel insurance is one example of this. You don’t have to endure the financial burden of a misplaced bag or an unfortunate incident when traveling overseas since you have travel insurance. In the workplace, the same holds. It is possible to delegate some of your responsibilities to a third-party contractor. Hedging is a financial technique used to safeguard your assets and investments.
A desire to minimize the potential for harm
Risk avoidance is defined as avoiding performing any activity that might lead to the occurrence of risk in the first place. The goal here is to remove the likelihood of the danger happening entirely. A good way to prevent danger is to put your money into investments. If you feel that the investment is too risky after considering the risks, then you simply do not invest in it.
Reducing the chance of an accident
Definition of risk reduction: The severity of risk may be reduced by taking steps to avoid or limit it. It’s common for risk reduction to be referred to as “minimizing risk” while discussing risk management. Decide what steps you can take to lessen the dangers you’ll be taking if you decide to adopt this course of action.
Results
For crisis management, strategic planning is essential since it deals with the organization’s vulnerabilities and dangers, and it also anticipates future events that might lead to a crisis. advocates the idea that learning from past experiences may help us avoid making the same mistakes again by evaluating potential situations that might lead to the same mistake (Fell et al., 2018). Forecasting, formulation, implementation, monitoring, evaluation, and resource allocation are just a few of the many facets of strategic planning that need to be considered. asserts that these procedures are essential to the process of strategic planning.
They both focus on the future of the firm and its organizational structures, as well as its vulnerabilities and hazards; they are also concerned with the resources needed to carry out the plan. In light of environmental changes, there is a contrast between crisis management and strategic planning: crisis management deals with inherent hazards, while strategic planning deals with the opportunities that emerge from this revolution.
Recall that whereas crisis management is concerned with a company’s long-term viability, strategy is concerned with its long-term growth and development. As a result, staying alive is more important in crisis management than in strategic planning (Fell et al., 2018). In crisis management and strategic planning, it’s all about anticipating the future. For a company to thrive during and after a crisis, it is necessary to have a team of crisis managers and strategists ready to learn from prior mistakes.
Discussion
Research shows that strategic planning is essential to any business because it has a favorable impact on the firm’s economic and non-economic objectives, which ultimately lead to increased bottom-line productivity (Baryannis, et al., 2019). A well-planned crisis management strategy may contribute to increased productivity in a business if it is executed correctly.
There is some debate among researchers as to whether or not crisis management is the same thing as strategic planning, even though both need process planning that includes formulation, execution, monitoring, and evaluation. Crisis management and strategic planning have a lot in common in terms of leadership, business culture, decision-making, and situational awareness (Samini et al., 2020). Organizational structures and the resources required to implement a strategy are both addressed in both constructs; they are also concerned with a company’s weaknesses and risks.
According to a survey of academic research, businesses that have undertaken proper strategic planning are better suited to dealing with a crisis. Further research found that the kind of crisis management used to deal with a particular calamity determines whether the damage is modest or substantial. A proactive strategy for crisis management takes a strategic approach to crisis management. Experts in crisis management and strategy are in high demand since the current coronavirus (COVID-19) epidemic has made the whole world vulnerable and impacted the global economy. For effective crisis management, a company must be able to analyze and detect crises’ nature and causes via sufficient strategic planning.
References
Steiner, G. A. (2010). Strategic planning. Simon and Schuster.
Bryson, J. M., Edwards, L. H., & Van Slyke, D. M. (2018). Getting strategic about strategic planning research. Public management review, 20(3), 317-339.
Gasmi, A., Noor, S., Tippairote, T., Dadar, M., Menzel, A., & Bjørklund, G. (2020). Individual risk management strategy and potential therapeutic options for the COVID-19 pandemic. Clinical Immunology, 215, 108409.
Boyne, G. A. (2010). Strategic planning. Public Service Improvement: Theories and Evidence; Ashworth, R., Boyne, GA, Entwistle, T., Eds, 60-77.
George, B., Walker, R. M., & Monster, J. (2019). Does strategic planning improve organizational performance? A meta‐analysis. Public Administration Review, 79(6), 810-819.
Kersulić, A., Perić, M., & Wise, N. (2020). Assessing and considering the wider impacts of sport-tourism events: A research agenda review of sustainability and strategic planning elements. Sustainability, 12(11), 4473.
Baryannis, G., Validi, S., Dani, S., & Antoniou, G. (2019). Supply chain risk management and artificial intelligence: state of the art and future research directions. International Journal of Production Research, 57(7), 2179-2202.
Fan, Y., & Stevenson, M. (2018). A review of supply chain risk management: definition, theory, and research agenda. International Journal of Physical Distribution & Logistics Management.
Samimi, A. (2020). Risk Management in Information Technology. Progress in Chemical and Biochemical Research, 3(2), 130-134.
Fell, R., & Hartford, D. (2018). Landslide risk management. In Landslide risk assessment (pp. 51-109). Routledge.
write