[CM] Definition of a Full Crisis Management Simulation Exercise

Definition of a Full Crisis Management Simulation Exercise

It involves cross-functional teams, external stakeholders, and real-time decision-making to evaluate preparedness, coordination, and recovery plans at scale.

Pre-reading for Participants Attending Module 4 of the CM-5000 Crisis Management Expert Implementer Course

Key Characteristics

1. Comprehensive Scope

   • Tests the entire crisis management framework, including:

     • Leadership decision-making (e.g., C-suite, crisis committee).

     • Operational response (e.g., IT, security, logistics).

     • Communication workflows (internal/external, including media/regulators).

     • Business continuity & recovery (post-crisis stabilisation).

2. High Realism

   • Simulates time-sensitive, multi-stage scenarios (e.g., escalating cyberattack + reputational fallout).

   • May include:

     • Physical deployments (e.g., emergency evacuations).

     • Live technology testing (e.g., failover systems, crisis comms tools).

     • External partners (e.g., law enforcement, PR agencies).

3. Dynamic Complexity

   • Uses branching scenarios where outcomes change based on team actions.

   • Introduces unplanned injects (e.g., "Breaking news: CEO resigns amid crisis").

4. Multi-Day Duration

   • Often runs for several hours to days (e.g., 8-hour war games or 72-hour continuity tests).

When to Conduct a Full Simulation

• Regulatory compliance (e.g., financial sector stress tests).

• After significant organisational changes (mergers, new leadership).

• Preparing for high-risk events (e.g., Olympics, product launches).

• Validating lessons learned from past incidents or partial drills.

Types of Full CM Simulations

Advantages vs. Partial Simulations

Example Scenario: Data Breach + Market Panic

Objective

Test the organisation’s ability to handle a ransomware attack while managing shareholder fallout.

Injects

• Hour 1: IT detects encrypted files + ransom note.

• Hour 3: Hackers leak data on dark web; media picks up the story.

• Hour 6: Stock price drops 20%; regulators demand a response.

Teams Involved

• IT, Legal, PR,  Leadership, Investor Relations.

Outcome Evaluation

• Did the crisis team follow the playbook?

• Were cross-functional handoffs seamless?

• How did real-world constraints (time, misinformation) impact decisions?

Full simulations are the gold standard for stress-testing resilience.