A crisis can be defined as an unstable or crucial moment that needs an immediate action .
What is a Business Crisis?
A business crisis can occur when there is an unexpected event inside and shake the company's structure. These events can be caused by internal influences or external influences. The problem affecting the company must be resolved as soon as possible or permanently damage the business.
Types of crisis
Financial Crisis - Can occur when a business loses value, and the company can't afford to pay salaries or its debt. Typically this is caused by a drop in demand for the products or services.
Organizational Crisis - These are represented by the situations when the company is wrongly engaging with their customers, and they can lose trust or interest in the products and the brand.
Personal Crisis - This can happen when an employer or individual associated with the company's name is involved in unethical or illegal actions that can affect the reputation of the company.
Technological Crisis - In today's tech-driven age, businesses rely on technical systems to work. If one system crashes, it can lose important information, personal data of customers, employees, contracts, etc. A company needs to keep its systems up to date and always secure to avoid technological crises.
Natural Crisis - Can affect a business very much; if an earthquake destroys the building, it needs to find a new office. Natural phenomenons can change the resistance of a building and affect a business if it's temporarily closed. If the company is located in an area exposed to extreme weather, the business owners must prepare an emergency response to unfortunate events.