12 - Crisis management and decision-making

Abstract

A crisis of organization is defined as an event with high impact and the low probability that might jeopardize a company's liability and survival. As a result of greater technical innovation and rising environmental concerns, crisis management in organizations has become an intriguing subject of study, notably in the energy industry. Although oil, gas, and petroleum companies have crisis management procedures in place, they are unprepared to cope with real crisis situations when they happen. This underlines the apparent absence of plans for crisis management, especially before the occurrence of crises. The current research questions are focused on two issues: first, how can organizations prepare in the best possible way to deal with crises, and second, whether oil companies prepare plans for crisis management before a crisis. The definition and characteristics of a crisis and crisis management are determined by a theoretical crisis management plan model. The petroleum industry's potential best and worst instances of crisis leadership and communication in crisis management planning are examined in order to determine their significance in crisis management planning. The research also focuses on an organization's degree of readiness before the occurrence of a crisis. Organizational preparation is assessed in terms of criteria such as type, size, and perceived role. Furthermore, the primary obstacles to implementing a crisis plan are identified.