In the business world, there are innumerable unpredictable events that lead to restlessness and abrupt situations in the business. These are called business or organizational crisis. This crisis refers to the unstable and dangerous situation that has the potential to impact the community or a society at large. These crises occur when they happen at very short notice and trigger the feeling of fear and threat.
1. Technological Crisis:
In the technological era, everything is dependent on technology. Any sort of obstacle in technological gadgets or equipment can disrupt the work. Generally, a technological crisis includes hardware failure, software gets compromised by software or industrial accident. To deal with such situations, management should try to mitigate the losses and ensure a plan to get things back to normal as soon as possible.
2. Financial Crisis:
Financial crises occur in a business when the organization is suddenly hit by a large amount of financial loss. It may be bankruptcy, revenue losses, inflation, or sudden trend change in the market. These types of crises are quite damaging to the entire organization. Customers can lose their trust if the financial crisis is not handled carefully and quickly.
3. Natural Crisis:
Natural crisis takes place because of the occurrence of natural phenomena such as earthquakes, volcano, floods, storms, or any other act of nature. The damage caused to the business due to the natural calamities is generally referred to as a natural crisis.
4. Confrontation Crisis:
Confrontational crisis happens in the organization due to conflicts between group of people or individuals. These people form groups and fight against the policies and regulations of the business or organization. They wish the organizations to fulfill their demands and expectations.
5. Workplace Violence:
This type of crisis generally occurs with the working labors and the organization. It will happen when the employees of an organization fight within the office premises. Such crisis are called workplace violence. It might have a long term influence on the mental and physical health of the employees.
We hope this blog has given you an overview of common business crisis that you need to be aware of while running your business. Keep Learning with EnglishBix!