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Related Experiment Videos

Setting up a crisis recovery plan.

N L Phelps

    The Journal of Business Strategy
    |January 5, 1987
    PubMed
    Summary

    Sudden disasters require immediate response, but long-term recovery planning is crucial. Proactive crisis recovery planning minimizes devastating after-shocks and organizational costs.

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    Area of Science:

    • Organizational Management
    • Risk Management
    • Disaster Preparedness

    Background:

    • Disasters, whether affecting companies, institutions, or nations, often elicit rapid mobilization of resources for immediate response.
    • The long-term consequences and costs of a crisis can significantly outweigh the immediate impact of the event itself.

    Purpose of the Study:

    • To emphasize the critical importance of integrating crisis recovery planning into strategic planning processes.
    • To highlight the often-underestimated long-term financial and operational impacts of disasters on organizations.

    Main Methods:

    • This study is a conceptual analysis based on observations of organizational responses to crises.
    • It synthesizes common patterns in disaster management and recovery.

    Main Results:

    • Immediate disaster response is often effective, but the subsequent "after-shocks" pose greater long-term threats.
    • Organizations frequently underestimate the sustained costs and disruptions following an initial crisis.

    Conclusions:

    • Crisis recovery planning must be a fundamental component of an organization's strategic planning.
    • Failing to plan for long-term recovery can lead to more severe and prolonged negative outcomes than the initial disaster.

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