Drawing from a body of strategic management literature, we explore the approaches proposed by theory and available to business decision makers during crisis. We argue that there is no real theory of success of management during crisis but only broad principles that should be followed. In a certain sense, experience and intuition – what could be called soft skills – are as important as hardcore economics. Moreover, the metrics of measuring crisis and the impact of decisions during such circumstances are to be further explored and divided in a comprehensive taxonomy. Despite its popular use, crisis management is at the start of its development. The authors advance both an approach as well as a tool for supporting decisions during business crisis.
Based on theoretical model (COSO ERM), I developed a tool that companies can use to correctly identify the risks they were exposed to, to prevent operational crises in due time, as there is no such a tool publicly available for companies to use. The objective was to offer a solution for all kind of organizations for the problem of correctly identifying and mitigating operational risk exposure, to consolidate their position and be able to prevent organizational crises. This is particularly important as it seems that a “permanentizing of crises” has occurred in the business environment. Compared to the other tools existing in the field of risk management, available to the public use, the mathematical algorithm is offering specific instructions for the managers to use, not just theoretical guidelines. Also, the tool offers a unique feature of being able to be applied for any kind of business organization, from any kind of business field, due to its capacity to adapt to the specificities of every enterprise. Meanwhile, while it seems to be very practical, it is based on a right theoretical framework, supported by the complexity theory.
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