Businesses lack crisis planning

Fifty-one percent of corporations do not have crisis management plans in place to help their organization or employees recover from critical events, an American Management Association survey shows. Forty-six percent of respondents have not designated crisis management teams, and 61 percent say they have not conducted drills or simulations.

The American Management Association surveyed its executive members and corporate customers in August about their crisis management plans.

Of the 428 who responded, the survey shows that more companies are prepared to handle a technical crisis (83 percent), such as a technology system failure, than they are to address a major disturbance (33 percent), such as terrorism or political unrest. More are prepared to handle natural disasters (71 percent), industrial accidents/fatalities (66 percent) and workplace violence (57 percent), than they are to handle company fraud (31 percent) or other major crimes (39 percent).

Nearly three-quarters (71 percent) of respondents said that key personnel across all lines of business and support divisions have not been trained in crisis management skills to ensure support from every area of their company. Only about a third (35 percent) of the companies offer formal training on security procedures for their employees. Of those that do offer training, 80 percent provide it once a year or less.

More companies have ongoing and back-up communications plans with senior management (80 percent), employees (77 percent), emergency respondents (61 percent), legal entities (53 percent) and insurance carriers (51 percent), than they do with other key stakeholders (44 percent), media (40 percent), regulatory bodies (40 percent), contractors (34 percent) or family members (30 percent).

AMA's survey also shows that a number of respondents have a high level of concern about employee screening and selection (38 percent), business resumption planning (37 percent), evacuation planning (33 percent), cyber threats (31 percent), workplace violence (30 percent), hazardous materials (27 percent) and travel safety (21 percent).

American Management Association is a management development organization. It offers a full range of business education and management development programs in the Americas, Asia and Europe.