What is the role of crisis management in protecting stakeholders?

• A. It replaces the risk assessment phase
• B. It focuses only on post-incident financial losses
• C. It provides the framework and actions to respond to major incidents and protect stakeholders
• D. It has no role in protecting stakeholders

Answer: (C)

Crisis management is about coordinating the organization’s response during major incidents to safeguard people, operations, assets, and reputation. It provides the framework and concrete actions for detecting, prioritizing, and responding to crises, guiding rapid decisions, resource deployment, and communications across functions to protect stakeholders such as employees, customers, suppliers, and the community. This role relies on prior risk information but is activated when a crisis occurs; it does not replace the risk assessment phase. It also covers more than just post-incident financial losses, focusing on safety, continuity, and trust to support quicker recovery.