Crisis management is one of the most common terms in the business environment of Russia. Let's understand what kind of activity it is, how it differs from ordinary management.
Let's start with the definition: crisis management is a combination of certain knowledge and the results of the analysis of practical experience, which is aimed at optimizing the management mechanisms of systems necessary to identify possible hidden resources, as well as a certain development potential. The crisis management strategy is directly related to decision-making in conditions of limited resources, a large degree of risk and uncertainty.
In one case, it means managing the company during a crisis of the economy, and in another, crisis management means managing the company during its bankruptcy. This concept is often associated with the activities of managers precisely in judicial procedures at a certain stage of bankruptcy.
The crisis management system is a system in which the mentioned type of management is considered as a single set of measures from preliminary detection of a crisis situation to methods for overcoming and eliminating it.
Crisis management is a management system in which a systematic and integrated approach is implemented aimed at detecting and eliminating adverse events for businesses using the full potential of
modern management. It also includes the development and implementation at the enterprise of a special effective program that has a strategic character, which allows to eliminate certain temporary difficulties, to strengthen, and to begin with, at least maintain its market position, relying on its own resources.
The crisis management system is based on the following basic principles:
1. Initial diagnosis and identification of crisis situations in the financial activities of a particular enterprise. Considering that any emergence of crisis situations at the enterprise poses an irreparable threat to the organization itself and is associated with unjustified loss of capital, the possibility of a crisis must certainly be diagnosed at an early stage in order to neutralize such situations in a timely manner.
2. The next inalienable principle is the urgency of responding to such crisis situations, since such phenomena tend to cause related problems. Therefore, the sooner such situations are identified, the sooner it will be possible to begin to restore the balance.
3. Another principle is the full implementation of all available internal capabilities to exit the enterprise from the current crisis state. When overcoming the threat of bankruptcy, an enterprise should rely solely on its internal financial capabilities.
So to summarize. Today, any enterprise, no matter how efficiently it operates, needs such management activities as crisis management. This concept implies not only the management of the organization during a crisis using bankruptcy procedures, but also pre-crisis management designed to develop measures to prevent crisis situations, and even post-crisis management aimed at eliminating the negative consequences of the crisis and maximizing the use of its positive results.