You work as a crisis management expert for Samsung. Describe a crisis management strategy that the risk committee of Samsung can implement. Augustine’s (1995) crisis management stages might help you to organize your process. To illustrate to the risk committee how the process should operate, apply the process to an example crisis scenario that is relevant t the organization (ex: Galaxy Note 7 crisis (safety issue)).

Notes on Augustine’s crisis management  crisis management

Stage 1: Avoid the Crisis

• Checks and Balances in Leadership and Governance
• Implement Enterprise Risk Management
• Philosophy of Transparency
• Redundancy in Information Technology
• Offsite Back-Up of Information
• Develop Effective Reputational Drivers of Integrity (Beliefs and Boundaries)

Stage 2: Prepare to Manage the Crisis

• Identify a Crisis Management Team
• Design an Effective Crisis Management Plan  crisis management
• Institute Specific Chain of Communication
• Drill, Drill, Drill
• Develop Effective Relationships with Suppliers and Competitors

Stage 3: Recognize the Crisis  crisis management

• Understand the difference between event crises and crisis creeps
• Monitor the Environment
• Establish Hotlines with Employees, Customers, Suppliers
• Create Databases and Identify Patterns
• Educate Employees on How to Instigate a Crisis Plan

Stage 4: Contain the Crisis  crisis management

• Stop the Bleeding/Triage
• Time › Money
• Top Priority: Safety of Customers/Public then Employees
• Open, Honest Communication by Spokesperson
• Work with Authorities Openly
• Get Products/Services to Customers by Any Means

Stage 5: Resolve the Crisis

• Business Continuity—Resume Normal Operations
• Permanently Fix Root Cause to the extent possible
• Win Back Customers— OVER Compensate Them
• Reassure Employees and Investors
• Continue to Communicate Openly, Honestly
• Settle Any Lawsuits or Regulatory Fines
• CEO Should Accept Blame— Step Down when Resolved