Crisis Management in International Business During the COVID-19 Pandemic

Abstract

Abstract. Introduction. The recent world crisis events triggered by the COVID-19 pandemic have had a significant impact on European and world companies. Specifically, they focused on the first two pandemics, which made the world situation experience similar restrictions on a global scale (Congo flu in Hong Kong in 1968, swine flu outbreak in 2009), various disasters, and natural inevitable Avoided accidents, unforeseen events such as terrorist actions, etc. Purpose. This article is focused on learning of unresolved aspects of digital transformation of human resource management during the pandemic require further research, particularly to identify and summarize the trends and factors contributing to these changes, and to identify issues and obstacles that arise throughout the process. Results. The completed study shows that companies should be ready to work in advance, in order to be sustainable and have at least some stability and competitive edge during time of crisises. Crisis management systems are analyzed and based on a four-level circular model, more commonly known as the PPRR model. Also, any organization should be prepared for different crises, which may be short-term or long-term. 3-tier system of crisis response is analyzed, it consists of pre-crisis period of preparations, contingency plan, which is aimed at saving the maximum stream of revenue, while enduring minimal hardships from the crisis and rehabilitation stage, at which thorough analysis should be conducted in order to improve the future reaction for the crisis. Conclusions. The review found that risk management primarily helps provide post-crisis renewal, stability and growth, reduce revenue volatility, increase stakeholder confidence, protect an organization`s assets, and meet insurance, legal and regulatory requirements. This means that structured risk management must be incorporated into existing operations and become an integral part of key decision-making processes. Therefore, it can be concluded that the risk management plan must be constantly updated, the philosophy must be able to change, and it must be improved taking into account changes in external or internal factors.