A crisis can bring companies into need, ie lead to a situation that threatens their very existence. It often manifests itself in financial difficulties through to insolvency. There are manageable or uncontrollable corporate crises.
Definition of crisis management:
Crisis management is a special form of corporate management and serves to avoid or cope with negative developments such as insolvency and liquidation. It includes:
Crisis avoidance, whereby critical developments may not even grow into acute stages, but must be combated preventively using early detection and prognosis techniques. This assumes that the crisis is recognized as such. This goal is difficult to achieve because crises can hardly be foreseen or determined in advance.
Crisis management, which reacts appropriately to symptoms that have already occurred. Dealing with crises requires crisis management that identifies the causes - e.g. B. lack of capital, bad investments, bad debts, declining economy - has to assess and take countermeasures. They consist in the restructuring of companies in crisis, but can also extend to the liquidation of companies that can no longer be restructured.
Crisis management is a permanent management task, especially for crisis-prone companies. Crisis management teams should constantly be set up in these companies with the task of exploring conceivable types of crises, developing plans to combat them and developing crisis awareness.
Due to the increasing national and international crisis developments in companies and groups, crisis management will be (even) more important in the future.