Crisis and Risk Management
One of customers visiting the Sands Casino hacked into the system while logged into the Wi-Fi, thus exposing any private information that the company might have. Such a breach would have an adverse impact on the security of the organization and its reputation among consumers (Sharon 16). Every company is prone to risks, some of which might be out of the management’s control. Besides, there is no guarantee that a hazard is easily foreseeable. So, a company will not always take necessary measures to mitigate its occurrence in the future. Safeguarding the organization entails the inclusion and protection of all the essential stakeholders who might be affected by the risk: staff members, customers, and investors.
Once the hazard has been identified, the management has to conduct a risk assessment. It concerns the idea of evaluating characteristics of the uncertainty in questions and how employees’ actions might increase the likelihood of the hazard occurring in the organization (Sharon 37). In the mentioned case, there are measures that the management could have taken to prevent the security breach. In the digital age, the company must be prepared for a situation when its computers or the internet could be used to breach its security. Although firms provide numerous talks with their employees on effective risk management, the problem is that most organizations do not consider ways to motivate the workers to reduce any hazard that they face. In such a way, companies should elaborate training sessions and highlight any possible risks and their mitigation to new and old staff members.
Crisis management seeks to prevent or minimize adverse outcomes and, thus, to protect the organization and its stakeholders from any harm that would likely result from the occurrence. The focus of most people is often on the cause of the hazard based on the general attribution that it has to be something negative, especially when considering how the occurrence could affect the company (Sharon 73). The first step to an effective crisis management is to inform all staff members about the hazard so that they are ready to its mitigation. It will help the firm diminish negative effects of the problem and avoid more losses. The second step is to communicate the incident to the media and the public as quickly and honestly as possible. The strategy helps the management avoid any adverse ways of spreading the information and save the image of the organization. These steps will guarantee the success of preventive measures in place to avert a similar crisis occurring in the future.
Having handled the current crisis, the company has to analyze the situation and its outcomes to the business and strengthen security and systems to avoid a similar lapse. The control measures that have been implemented must be reviewed and, if necessary, revised so that they work according to the set guidelines. The company has to analyze reaction and actions of employees and improve any shortcomings. Moreover, the defined measures will help the organization maintain a safe environment for its business operations and work of staff members. The key objective is to guarantee competitiveness of the company; the occurrence of the risk should not hinder the firm’s operations and image. Therefore, any company has to put efforts to prevent security breach hazards and eliminate them as quickly as possible when they occur.
Works Cited
Sharon, Bill. Risk Management in an Uncertain World: Strategies for Crisis Management. Bloomsbury Publishing, 2012.