Crisis Management Series
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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
Crisis Management Certified Planner-Specialist-Expert

New call-to-actionHere is another type of crisis scenario described in the "What Crisis or Crisis Scenario Should I Be Planning For My Organisation?" that is on the list to handle as part of crisis management and crisis communication. Click the right icon to read more.

Crisis Management, which leads to crisis, bankruptcy, and liquidity, is often managed by the finance or credit/market risk management team. As one of the significant crises encompasses the "lack of funds," senior management is assigned to manage this specific crisis scenario. 

IC_CM_LackofFundsThe crisis management team must understand the definitions of the terms used. These are some of the terms.

Lack of Funding

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


Bankruptcy is the 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 liquidity shortage. Liquidity may refer to market liquidity, funding liquidity, or accounting liquidity.  (Source: Wikipedia)

Lack of FundsExamples of a "Lack of Fund: crisis include:

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


More Information About Crisis Management Blended/Hybrid Learning Course

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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