Crisis Scenario Arising from the Lack of Fund

One of the crisis scenario that an organisation needs to plan for is the lack of fund crisis scenario.  It is typically described as a crisis that arises when organisations fail to pay its creditors and other parties.  When planning this scenario, some crisis management professionals will feel that this is beyond their scope of work.  It is agreeable but as a team, management should be advised and this crisis scenario should be assigned to the appropriate discipline within the organisation.

Irene Lye

CTA KMA Know More About Crisis ManagementCrisis Management due to the lack of fund leads to crisis, bankruptcy, liquidity crisis is often managed by the team responsible for finance or credit/market risk management team,  As one of the major crises encompass the "lack of fund", senior management is assigned to manage this specific  crisis scenario. 

IC_CM_LackofFundsIt is essential that the definition for the terms used by clear to the crisis management team  These are some of the terms.

Lack of Funding

Funding is the act of providing financial resources, usually in the form of money, or other values such as effort or time, to finance a need, program, and project, usually by an organization or company. (Source: Wikipedia)


Bankruptcy is a legal status of a person or other entity who cannot repay debts to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. (Source: Wikipedia)

Liquidity Crisis

In financial economics, a liquidity crisis refers to an acute shortage of liquidity. Liquidity may refer to market liquidity, funding liquidity, or accounting liquidity.  (Source: Wikipedia)

Lack of FundsExample of "Lack of Fund: crisis includes:

Think about this before you need to minimize disruption in the event of a severe crisis. 

If you want to know more about how crisis is related to crisis management and crisis communication:

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