Broker Check

Crisis Management v. Risk Management

March 28, 2022

An article on the RiskForesights website discuses the difference between risk management and crisis management. 

Basically, risk management is proactive. Its aim is to anticipate and reduce threats, and  exploit opportunities. Crisis management on the other hand is reactive. It deals with a sudden negative event - a failure of risk management.

Organizations that extrapolate their present model into the future risk crisis and failure when conditions change. Forward looking organizations identify, assess and exploit new and emerging risks.

Risk management does include managing a crisis. Every organization needs to have an incident response plan in place. However, managing from crisis to crisis is not a formula for success.