A communication crisis is an event triggered by media channels that can severely impact the reputation of a Business. The reputation of a Business can be completely undermined if senior leadership fails to provide an appropriate and contextually relevant solution. This article will provide detailed information on the four common types of crises so that every Business can find the best way to manage a communication crisis.
Crisis communication is an adverse event that can potentially damage the reputation of a Business, created due to conflicting interests among stakeholders or illegal actions taken by the Business. There are four factors leading to a communication crisis:
Unlike risk management, which includes assessing and building scenarios to respond to potential threats, crisis communication management focuses on handling the situation during and after the negative event occurs on media channels. The crisis resolution process demands that managers possess analytical skills, an understanding of the current context, and the ability to coordinate with relevant personnel to address the serious situation skillfully.
When there is a group of individuals with conflicting interests or conflicts of interest with a particular Business, whether internally or externally, they may collaborate to sabotage or boycott the company in order to benefit their own side.
A self-inflicted crisis occurs when a company’s product is involved in a serious manufacturing flaw or faces unexpected allegations from competing parties. A classic example is the incident involving Vinamilk, where many competitors and the media accused the company of receiving government support to win the Vinamilk School Milk Program bid. Following this, Vinamilk issued a denial statement and emphasized its intention to take legal action against any organization that continued to spread false information causing public confusion.
A sustained crisis refers to issues or conflicts within a particular group or individuals within a company that have appeared and persisted over a relatively long period of time. However, these issues have not escalated to a significant level, and their impact remains relatively contained within the organization. As a result, many Businesses tend to be complacent and overlook these problems. It’s only when these conflicts evolve into a full-blown crisis that it becomes too late to address the situation.
An interconnected crisis occurs when one of the Business partners falls into legal troubles due to engaging in illegal Business activities or problems arise with their products during production. Although they are just partners, our company can still be affected to some extent or even become entangled in baseless rumors. Particularly, the opposing party may exploit this opportunity to collaborate with the media to spread unfounded rumors, tarnish our reputation, and damage the organization’s credibility.
In this way, readers have just explored four common types of crises in communication that any Business should be aware of when conducting their operations. It is hoped that with the detailed information provided in this article, readers will gain valuable insights to facilitate the management of crisis communication effectively and efficiently.