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Analysis of Crisis Communication: Giving Counter Feedback to The Crisis

Suman Limbu

Presidential Business School

Westcliff University

BUS600: Managerial Communication

Mr. Megharaj Adhikari

December14, 2021
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Abstract

This paper explores about the crisis communication and provides ways to develop strategy for

organizational continuity. First, it deals with what crisis communication is and later this paper

demonstrates how I as spokes person handled to the crisis described in CLA1. Moreover, after

comprehending the feedback of audiences to the crisis faced by the corporation, I had developed

such strategies which have been provided in this paper.

Outline of Business Scenario:

As we know, every person wants to make their career in business entrepreneurship

investing single or collective capital. Despite there is better life style in having business

enterprise, of course they experience some hindrances in operating business activities. Each and

every business scenario is changing day by day. Nowadays, the only permanent thing is change.

So, in this dynamic environment majority of the business organizations face such phenomena in

order to obtain corporation goals and objectives. There are several challenges associated with a

business enterprise, and they may be classified mainly into two categories namely, internal and

external. (Musdholifah et al, 2020). So, as far requirement of the question here will discuss about

the external challenge and how crisis communication helps to overcome such crisis having

analysis of real -world crisis example.

Concept of Communication and Crisis Communication:

Simply, communication carries conveying of the message that the giver provides to the

receiver. It does not have any exception except itself rather communications are conveyed

through different media. Moreover, communication helps in team interaction, day to day

etiquette, and showing concerns or nonverbal communication. In the diverse workforce today,

the global business environment is a field to play a game of communication. In other hand, due

to highly dynamic situation of business phenomena, any business may face crisis at any position

of the business enterprise. In addition to business crisis, it can be defined as any disruptions

occurred in the operation of business activities as consequences of internal or external

environment of the corporation that may result financial loss in the business. Moreover, it is a

unique nature occurrence in the business activities. So, for the sustainability of the organization
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crisis communication has become a crucial tool and concept in the field of the corporation. Not

only in the business organization but also it is important in other organization whether it can be

non-profit, service, and non-government organization. So, it is works as safeguard of the

enterprise. Furthermore, Crisis communication works as a key element of business continuity

and disaster recovery in the corporation and provides strategies how the organization deals with

outsiders to keep reputation and image of the corporation in the condition of such odd conditions.

So, it is a tool used for maintaining business goodwill and reputation in complex situation.

(Young, 2018). So, crisis communication is the management tool that is taken by the corporation

for minimizing any losses by the consequences of disruption that let to deteriorate the reputation,

goodwill and image of the corporation performances. So, the crisis demands decisive crisis

communication from being defamed. (Jugo et al, 2020).

Reviewing the Crisis Occurred in Nabil Bank (Used in CLA1):

Nabil Bank, one of the best banks of Nepal, has gone through the situation of crisis just four

years ago facing the condition of losing customers’ preferences towards the Nabil Bank caused

by consequences of ATM boots loot. After such crisis the bank has faced and contended several

negative feedbacks from the stakeholder including shareholders, customers, lenders, investors,

government and public. So, as a spokesperson I have counteracted such crisis complains which

has been described in later discussion.

Claims of the Public about the banking system:

Since, the bank’s ATM were pilfered by some foreigners in Lazimpat area in Kathmandu

on day time, the information had been spread through several news media including TVs, and

radio soon after the event happened. After getting such news the public construed it as fault of

the security system of the bank. Moreover, they connoted mainly to the banking system about

how it could be and what about their savings. The depositors who have huge saving in the bank

called on the emergency line for being sure about the news. Majority of the customers had been

become confounded for that news and started to cavil and carp about the weak banking security

system. They basically worried about their saving, its information and records fi it would be

erased. So, public denounced towards fault of the bank staff too for doing careless about visual

protection from CCTV. Afterall, they deplored to the functions of Nabil Bank. Similarly, some

of our competitors and rivalries started to drivel about our system after happening this. The

government administration had also communed about this event and started to investigate

without any dawdling. Consequently, the level of deposit had been declined and NRB (Nepal

Rastra Bank) refused to provide liquidity without clearance of such crisis.

The Action Taken by Me (as an executive and spokesperson):

First of all, I took help of police personnel for proper investigation and made a sue for those

people who have done such activities on behalf of the bank. Then I minimized the negative and

exaggerated news by establishing proper communication and telling them about the truth with

the media and I ordered to make stop the entire banking services for a while. As we know, media

mostly effects the image of any organization trough the information they provided among the

public. (Dysart, 2008). I filtered all the negative feedback into positive one without any

delaying. I comprehended the crisis and rumor from the side of customers and public. In the

business scenario of customer oriented, all the corporation will be success if they maintain

customer dignity, value and preferences in proper manner. (John Venhuizen, 2013). So, I firstly

tried to address all the complains and discomfort experienced by the customers. After making

investigation about the incident and knowing all the cases, I called a press meeting for

exonerating the bank staff and being sure to the customers and stakeholders that their deposit

would be saved in any condition regardless of natural natural disasters. Since, news media is the

fastest medium to approach the customers and crucial provide information mentioned by

Muhammad Imam Suja’I (2019), I expatiated about the all incident in front of media. I

apologized and ask for condone to the customers for such incident, and declared that from that

event it will never happen again in the future. Appreciating such complains about the records of

customers, I managed to provide them a detail mail containing their banking information

regarding transactions activities and remaining saving balance as soon as possible. And I stated

the bank will provide such compensation if anyone had lost monetary value or equivalent such

value from this crisis and declared if anyone who will make deposit with in 24 hours from then
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the bank will provide 20 percent interest for such amount including, bank will provide double

cash bonus during the year.

At last, I urged everyone to believe about the banking security system and do not follow

the rumor in the market. And make sure that this was just an incident as rare case in this bank.

Conclusions

Crisis communication is one of the most important managerial tools that can be used to

sustain organizational goodness and images in front of the stakeholders that establishes effective

public relationship that brings organizational mission and goals. As a spokesperson of the bank

of Nabil Bank, I used such concept in crisis faced in the way of banking operations. After using

various ways to overcome negative consequences, the bank got succeed to maintain its

reputation, goodwill and customers references again.

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CEO Breakfast Program: John Venhuizen on How Small Business Success Drives Big Business

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