Crisis In Crisis Management

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Crisis Management in Business (Accounting) Crisis management is a relatively new field of management, as discovered in the amount of literature available on this topic. The Ivey Business Journal describes crisis management as “a systemic approach that engages the whole organization in efforts to avert crises that may affect the firm, and to effectively manage those that do occur.” They further explain the objective of organizational crisis management as a form of making critical decisions based on known facts and clear thinking particularly when operating under extraordinary conditions (Pearson, 2002). Preparing for a crisis, and reacting appropriately can mean the difference between the demise and survival of a company. Moreover, organizations…show more content…
Crisis management, in its simplest form, is the nature of activities to respond to a major threat to a person, group or organization. Crisis management, in regards to accounting, focuses on financial data, and also works to project cash flow beyond the months of the crisis. Management accountants work to enable better working capital management and provide more reliable forecasts before and after a crisis (Fink, 2002). Ultimately, a business crisis can be anything that can negatively effect a company’s reputation or bottom line. Personally, my encounter with business crisis management has been limited to the non-profit sector. Working as a program coordinator for an after-school program that served multiple students in one of Maryland’s most troubled district, I left the organization shortly before a research grant ended. This after school program was designed to target the two primarily Latino…show more content…
To redeem its tarnished reputation, the AOL trade name was dropped, and AOL trading was reduced to a division of the Time Warner Company (Bodie, 2006). As a business adjusts to a new post crisis existence, management accountants hold a valuable role in providing management the information needed to move forward. This is set to continue as the business appreciates the potential value in the data captured digitally on their systems and through social media, the press, board meetings, etc. As in the case of AOL, investors, regulators and other stakeholders require more integrated reporting to better understand a company’s performance, position and prospects. More transparency in reporting is needed, bringing statutory reporting closer to the responsibility of the management accountant in providing management information. Management accountants therefore have an increasingly important role to play in informing both management and stakeholders’ decisions. Stakeholders expect that you will protect program participants, volunteers, staff, and property. They expect you to appropriately manage funds and

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