The consequences of Reactive v/s Proactive crisis management

In today’s fast-paced and digital world, businesses are more susceptible to crisis than ever. The crisis can disrupt their operations, hamper their image and affect financial stability. 

It is very important for company to handle crisis effectively to prevent its downfall. Here comes the need for effective crisis management. The expert PR professionals follow two primary approaches to crisis management – reactive and proactive.  

Let us explore in detail Reactive v/s Proactive Crisis Management-

What is Reactive Crisis Management?

Reactive crisis management is the response of the company to the crisis after it has occurred. The PR experts work to mitigate the damage of crisis occurred by restoring normal operations and communicating with stakeholders. While reacting to crisis is important, however relying only on this approach can cause many negative consequences.

1. Increased damage and costs: When unexpected crisis strikes, company is often not prepared to cope up with it. Thus the initial damage can escalate quickly. Reputable crisis management company table pre-planned strategies that help them make informed decisions. The cost of emergency responses, legal fees and repairs are higher when dealing with anticipated crisis.
2. Loss of trust and reputation: In the age of social media, news of crisis can spread rapidly. A poorly or delayed managed responses can result in irreparable loss of customer trust and damage to the company’s credibility and image. Rebuilding a tarnished image takes time and resources. It also has long-term impact on the customer loyalty.
3. Operational disruptions: Reactive management leads to greater disruptions in the daily operations. Employees might not be sure about the roles and responsibilities during crisis without proper and clear plan. This leads to inefficiency and confusion. This disruption can affect productivity and the bottom line of the company.

also read:- The importance of Crisis Management in Public Relations

What is Proactive Crisis Management?

Proactive crisis management involves anticipating potential crisis and developing strategies to reduce or prevent their impact. The professional PR experts do round-the-clock monitoring, planning, and training to ensure the company is prepared for unprecedented scenarios.

1. Minimum costs and impact: By proactively identifying risks and implementing preventive measures, companies can reduce the impact of crisis. The costs related with proactive measures are lower than expenses incurred from the wide spread crisis.
2. Increased image and trust: The notable PR experts that the crises effectively and transparently to gain respect and trust from their stakeholders. Being prepared allows for swift and confident communication that reassured customers, investors and employees. This proactive stance can even boost the reputation of the company as a responsible and reliable entity.
3. Business continuity: Proactive planning includes establishing clear roles and procedures for crisis situations. This preparation ensures that employees know what to do and can act quickly, reducing operational disruptions. Business continuity plan help maintain important functions, reducing downtime and preserving productivity. 

It is not possible to predict every potential crisis, adopting a proactive approach to crisis management can reduce risks and boost the resilience of company. When choosing between Reactive v/s Proactive Crisis Management, the choice is clear, proactive crisis management is the way forward.

Also read: Online Reputation Management Explained