Answer: the benefits are many but mainly if a company has a comprehensive crisis response plan then it is prepared to deal with unforseeable problems that will always appear in a company life.
One great example of a comprehensive crisis response plan was Ford's Bailout. Although Ford did not receive TARP funds, it did receive government loans. These were critical because banks were not lending during the financial crisis. It requested a $9 billion line-of-credit from the government.
Explanation:
Crisis management is the application of strategies designed to help an organization deal with a sudden and significant negative event. A crisis can occur as a result of an unpredictable event or as an unforeseeable consequence of some event that had been considered a potential risk.
Most companies are schooled in establishing a crisis management plan in order to react quickly and eliminate the problem. Here is the process: Identify and define the crisis. Establish an overall corporate response.
