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2. The writer provides guidelines for dealing with a crisis. Read the article again and complete the guidelines with words from the following box.

encourage deal compensate communicate

ensure concede listen take

1 ………. that monitoring systems are efficient

2 ……… customers to complain

3 ……… with complaints

4 ……… failures seriously

5 ……… to customer views

6 ……… responsibility where necessary and appropriate

7 ……… quickly and effectively

8 ……… customers fairly

Now give some examples of crises which were either well or badly managed. Which of the guidelines in previous exercise were or were not followed?

3. A) Match words from each column to make word partnerships, adding the word of if necessary. For example, action plan, admission of liability.

action action

admission conference

contingency confidence

damage information

flow liability

legal limitation

loss plan

press plan

press release

speed response

b) Complete these sentences with the word partnerships above.

1. How quickly management react to a crisis is known as the …

2. In a breaking crisis, a manager may speak to the media at a(n) …

3. Alternatively, they may have a written statement which is given to the media in the form of a ….

4. During the crisis, management may choose to keep customers, employees and shareholders up to date with a regular ….

5. A strategy for dealing with a crisis is a(n) …

6. A backup strategy is a(n) …

7. The risk of being taken to court is the threat of …

8. An acceptance of responsibility in a crisis is a(n) …

9. Following a crisis, a company may suffer a decline in loyalty from its customers, or a(n) … in its product or service.

10. Minimising the negative effects of a crisis is known as …

4. Answer these questions.

Which of the above would you expect to happen or be needed

a) before a crisis? b) during a crisis? c) after a crisis?

Which of the above, in your opinion, should exist all the time?

Effective Risk Management

1. Which item in each of the categories below carries the most and the least risk? Explain why.

Travel Lifestyle Money Shopping

car drinking alcohol property online

plane poor diet stocks and share mail order

train smoking savings account private sales

ship jogging cash auction