[CM] [Scenario] Category of Crisis Types

Category of Crisis Types

A crisis is a sudden, unplanned event that causes significant organisational disturbances and triggers employee fear and threats. The category of crisis types includes:

1. Natural
2. Technological
3. Confrontation
4. Malevolence
5. Organisational Misdeeds
   • 5.1 Skewed Management Values
   • 5.2 Deception
   • 5.3 Management Misconduct
6. Due to Workplace Violence
7. Due to Rumours
8. Lack of Funds

Natural

Disturbances in the environment and nature lead to natural crises, which are generally beyond human control.

Natural disasters include tornadoes, earthquakes, hurricanes, landslides, tsunamis, floods, and Droughts.

Technological

A technological crisis arises when technology fails. Problems in overall systems also lead to technological crises.

For example, the Breakdown of the machine's corrupted software soon gave rise to a technological crisis.

Confrontation

Confrontation crises arise when employees engage in conflict with one another. Individuals often disagree with each other and eventually resort to non-productive acts.

For example, boycotts, strikes for indefinite periods, internal disputes, ineffective communication, and a lack of coordination give rise to confrontation crises; employees disobey superiors, issue ultimatums, and force them to accept their demands.

Malevolence

Organisations face a crisis of malevolence when notorious employees use criminal activities and extreme measures to fulfil their demands.

For example, Acts like kidnapping company officials and false rumours all lead to a crisis of malevolence.

Organisational Misdeeds

Crises of organisational misdeeds arise when management makes certain decisions, knowing the harmful consequences of these decisions towards stakeholders and external parties.

In such cases, superiors overlook the long-term effects of strategies and implement them for quick results.

For example, a Crisis of organisational misdeeds can be further classified into the following three types:

• Skewed Management Values
• Deception
• Management Misconduct

Skewed Management Values

The crisis of Skewed Management Values arises when management prioritises short-term growth over broader issues.

Deception

Organisations face a crisis of deception when management intentionally alters data and information.

For example, management makes fake promises and makes wrong commitments to customers. Communicating wrong information about the organisation and products leads to a crisis of deception.

Management Misconduct

Organisations face a crisis of management misconduct when management indulges in deliberate acts of illegality.

• For example, accepting bribes and passing on confidential information.

Due to Workplace Violence

Workplace violence is a type of crisis that arises when employees engage in violent acts.

• For example, beating employees and superiors on the office premises itself.

Due to Rumours

Spreading false rumours about the organisation and brand leads to a crisis.

• For example, Employees spread inaccurate information, tarnishing their organisation's image.

Lack of Funds

The crisis also arises when organisations fail to pay their creditors and other parties.

• For example, a lack of funds can lead to a crisis, bankruptcy, or liquidity crisis.

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To learn more about each crisis scenario type, click the icon below.  When you need to return to this main page after viewing another crisis scenario page, click the icon "Crisis Type" to return to this page.

	Appendix 1: Causes of Crisis	Appendix 2: Crisis Types and Causes	Appendix 2: Crisis Types and Causes	Appendix 3: Examples of Crisis Types

Goh, M. H. (2016). A Manager’s Guide to Implement Your Crisis Management Plan. Business Continuity Management Specialist Series (1st ed., p. 192). Singapore: GMH Pte Ltd.

Extracted from Appendix 2: Crisis Types

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