What is crisis management in the context of risk management?

Crisis management, within the framework of risk management, primarily focuses on preparing for and responding to unexpected events that pose a threat to an organization. These unexpected events can include natural disasters, financial crises, cybersecurity attacks, or any situation that could potentially disrupt operations, harm employees, or damage the organization's reputation.

The essence of crisis management is to ensure that an organization has the necessary plans, protocols, and resources in place to address crises quickly and effectively when they arise. This involves not only having a response strategy but also conducting training and simulations to prepare staff for various scenarios. An effective crisis management plan can significantly mitigate the impact of an unexpected event, thereby safeguarding the organization's interests.

In contrast, other options do not align with the foundational concept of crisis management. For instance, preparing for and responding to expected events generally pertains to risk management strategies more than crisis management. The emphasis on delegating tasks to different departments focuses on operational aspects but does not capture the reactive nature of crisis management. Finally, the idea of eliminating all risks is unrealistic; instead, crisis management is about responding to the risks that materialize.