Crisis Management ISO 22361 Series
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[CM] [ISO] Pros and Cons of ISO 22361 CM Certification

The ISO 22361 crisis management standard provides a comprehensive framework for organizations to effectively prepare for, respond to, and recover from crises.

While the financial industry is often driven by regulatory compliance to adopt such standards, organizations outside this sector may question the necessity and benefits of pursuing ISO 22361 certification.

This article explores certification's value-added advantages and potential drawbacks, particularly for non-financial organizations, such as hotels, retail, healthcare, manufacturing, and other industries.

Moh Heng Goh
Crisis Management Certified Planner-Specialist-Expert

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Pros and Cons of ISO 22361 Crisis Management Certification for Organizations Outside the Financial Industry

The ISO 22361 crisis management standard provides a comprehensive framework for organizations to effectively prepare for, respond to, and recover from crises. While the financial industry is often driven by regulatory compliance to adopt such standards, organizations outside this sector may question the necessity and benefits of pursuing ISO 22361 certification.

This article explores certification's value-added advantages and potential drawbacks, particularly for non-financial organizations like hotels, retail, healthcare, manufacturing, and other industries.

Pros of ISO 22361 Certification

1. Enhanced Organizational Resilience

ISO 22361 equips organizations with robust crisis management practices to anticipate and navigate disruptions effectively.

Certification ensures an organization has a tested and structured approach to handling emergencies, minimizing the impact on operations, reputation, and stakeholders.

2. Improved Stakeholder Confidence

Certification demonstrates an organization’s commitment to proactive risk management and crisis preparedness.

This can enhance trust among key stakeholders, including customers, employees, suppliers, and investors, who value resilience as part of organizational excellence.

3. Competitive Advantage

Certification differentiates an organisation from competitors in sectors where operational continuity is critical.

Clients and partners may favour working with certified organizations due to the assurance that they are better equipped to handle crises without significant disruptions.

4. Alignment with Global Best Practices

ISO 22361 is rooted in international standards and best practices for crisis management. Certification helps organizations align their processes with these standards, fostering consistency, efficiency, and a culture of preparedness.

5. Structured Learning and Improvement

The certification process involves audits, training, and continuous improvement, enabling organizations to learn from their current crisis management capabilities and refine them over time. This iterative process ensures that crisis plans remain relevant and practical as risks evolve.

6. Cross-Industry Applicability

ISO 22361 provides a flexible framework that can be tailored to any industry. This is particularly valuable for non-financial sectors, where risks and crises can vary widely in nature and impact.

Cons of ISO 22361 Certification

1. Resource Investment

Obtaining and maintaining certification requires significant time, money, and human resources investments. Organizations must allocate resources for training, documentation, audits, and ongoing improvements.

2. Perceived Lack of Necessity

For organizations in industries where regulatory pressure is low or where crises are infrequent, certification may be viewed as a non-essential expense rather than a strategic necessity.

3. Implementation Complexity

Integrating ISO 22361 into existing operational structures can be challenging, particularly for small or medium-sized enterprises (SMEs) with limited resources or less formalized processes.

4. Certification Does Not Guarantee Immunity

While certification enhances preparedness, it does not eliminate the possibility of a crisis or guarantee a flawless response. Some organizations may develop a false sense of security after certification, leading to complacency.

5. Limited Market Recognition in Non-Critical Sectors

In industries where customers and partners place less emphasis on operational resilience, the added value of certification may not translate into tangible business benefits.

 

Value-Added Advantages for Non-Financial Organizations

Reputation Management

Reputation is critical for industries like hospitality, healthcare, and retail. ISO 22361 certification ensures that organizations are well-prepared to handle data breaches, natural disasters, or public health crises, minimizing reputational damage.

Supply Chain Assurance

In manufacturing and other sectors with complex supply chains, certification reassures partners and suppliers that the organization can effectively manage and recover from disruptions.

Employee Confidence

Structured crisis management processes boost employee confidence and morale, reassuring staff that the organization values their safety and has plans to navigate disruptions.

Customer Trust

For industries directly interacting with customers, such as hospitality and retail, certification demonstrates a commitment to safeguarding customer safety and service continuity during crises.

Is ISO 22361 Necessary Outside the Financial Industry?

While not mandatory for most non-financial organizations, ISO 22361 can still provide significant value. For instance:

  • High-Risk Industries: Sectors like aviation, healthcare, and energy benefit from the structured risk management approach certification offers.
  • Customer-Focused Businesses: Organizations prioritising customer experience, such as hotels and resorts, can leverage certification to build trust and loyalty.
  • Growth-Oriented Companies: Businesses seeking to expand into global markets or partner with multinational organizations may find certification a prerequisite for collaboration.

However, for industries with limited exposure to crises or where operational resilience is not a primary concern, the necessity of ISO 22361 certification should be carefully evaluated against the associated costs and benefits.

Summing Up ... by Dr Goh Moh Heng

Email to Dr Goh Moh HengISO 22361 certification offers a range of benefits, including enhanced resilience, stakeholder confidence, and alignment with global best practices.

For non-financial organizations, certification's value lies in its ability to demonstrate preparedness, protect reputation, and differentiate from competitors.

While certification is not always necessary, it is a strategic investment for organizations aiming to proactively manage risks and adapt to an increasingly volatile business environment.

The decision to pursue ISO 22361 certification should be guided by the organization’s risk profile, operational priorities, and stakeholder expectations. For many, the advantages of certification far outweigh the costs, making it a valuable asset in today’s crisis-prone world.

 

More Information About Crisis Management Courses

To learn more about the course and schedule, click the buttons below for the  CM-300 Crisis Management Implementer [CM-3] and the CM-5000 Crisis Management Expert Implementer [CM-5].

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