Situational Crisis

Situational crisis are unexpected events that can damage a business.

General Information

Situations crisis can happen from natural causes such as floods, tsunami, deadly and infectious diseases (COVID-19). It can provoke disturbance in the economical and financial part of a business, and develop other crises such as lower the number of employees, make a whole in the industry and make business's activity useless for human needs, make raw materials disappear, block shipments and more.

Types of Crisis

Each organization can be affected in one way or another by different types of crisis[1]. Here are some of the most widespread types:

  • Natural crisis: described above.
  • Technological crisis can happen because of breakdown, hacker attack, corrupted software.
  • Financial crisis happen because financial assets suddenly lose a large part of their nominal value. That means layoffs, less revenue, negative world GDP growth, unemployment and many more.
  • Crises of Organizational Misdeeds are trigger by bad and risky management decisions knowing the effect and harmful consequences on the business.
  • Crises Due to Rumors. When somebody bad-mouths about the brand, it can turn back at you, because people might believe the misinformation.
  • Social Media Crisis. When there is an event that affects the name of the brand and reputation due to bad communication and including critical personal religious and /or political beliefs that can lead to a social media crisis.

In Crisis Management we talk about lots of crisis types. It is only natural to talk about one of the most popular and well-known types of crisis - situational crisis.

External Links


  1. P. Juneja, in MSG Management Study Guide, Types of Crisis, 2011,