Docleaf has published a report on an investigation into the level of readiness of UK companies to manage crises. 100 companies were interviewed and asked a series of questions to establish the level of resource they have committed to crisis planning, and to identify some of the steps they have taken to equip themselves for crisis management.

Overall, the interviews showed that management in UK companies is taking the issue seriously, but there is still a long way to go. The report states that ‘it was troubling to see that many firms are unsure where and how crisis management should fit into the corporate structure’. The researchers reported they had to talk to people in at least nine different departments, including health and safety, finance, marketing, business continuity, operations, risk management, production, human resources, and facilities management.

100 percent of companies interviewed felt that they would be able to manage a crisis if and when one should occur. Was this is a real reflection of the ability of companies to handle a major disruption to their business, asks the report, or the symptom of a fundamental lack of awareness of the severity of the impact of a crisis on the ability of an organisation to function?

Around two thirds of the companies surveyed had suffered some form of crisis over the last five years, and the type of crisis was quite sector dependent.

Construction firms were more likely to experience criminal action against them, or local opposition to their operations.

Banks on the other hand, had been affected by the July 7 attacks in London.

Overall the chemical and construction companies appeared to be the least prepared to manage the crises that those industries faced. The chemical industry companies interviewed did not conduct simulations or have detailed crisis response plans in place to the same extent as the others.

The oil and gas sector appeared to be particularly well prepared, and this is likely to be in no small part due to the severity of incidents that can hit this sector and the negative fall-out that companies can, and do, suffer.

Read the report

•Date: 6th July 2007• Region: UK •Type: Article •Topic: Crisis management
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