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Exploring Crisis Communication: Causes and Overcome

Suman Limbu

Presidential Business School

Westcliff University

BUS600- Managerial Communication

Mr. Megharaj Adhikari

November 22, 2021

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Abstract:

This paper investigates the crisis of Nabil Bank based on issues faced by bank and deals

how crisis communication can handle the crisis in complex situation. Also, this paper focuses on

causes, consequences and way of overcoming from crisis by applying crisis communication. Step

by step guidelines are provided for maintain the company reputation and image trough good

public relation.
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Real-life crisis:

Going through the events there were several crises in the business activities. Some of

them

were caused by natural climate while other caused by human activities. The crisis that occurred

in

banking sector about four years ago the ATM boots of Nabil Bank were stolen by some people.

It

was claimed that pilfering was made by foreign people by hacking banking system of Nail Bank

in Lazimpat area. After that, the overall AMT services and banking transactions were made stop

by the bank for some hours for the security reason. Consequently, majority of people felt

insecure

in banking system.

Definition of crisis communication:

The raised uncertainty, risk and possibility of unforeseen crisis are the hallmarks of

modern business activities. Due to highly dynamic and unstable situation of current business

phenomena there is chances of crisis. Uniqueness is main feature of crisis that brings disruptive

situation in the organization. Crisis communication is as part of crisis management or

organizational activities that aims to protect the image and reputation of a company or an

individual who is in a crisis situation.

Crisis communication strategies remains as a key element of business continuity and

disaster recovery in business phenomena. It is protocol prepared and followed by the

organization to react with outsider in disruptive events. So, it is a tool used for maintaining

business goodwill and reputation in complex situation. (Young, 2018). Internal context of
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organizational crisis, a situation that brings ambiguity for the stakeholders and public.

Furthermore, Crisis can be defined as an event which increase the level of risk and uncertainty

that demands decisive communication in order to minimize any damages. (Jugo et al, 2020).

Managing the Crisis of Nabil Bank:

Crisis can be occurred as consequences of external causes as well as internal causes. So,

crisis communication should focus to address the issues of stakeholders and public.

As a spokesperson, the initial step should be made to evaluate the internal environment of

the organization properly.

When it comes to the issues of Nabil Bank’s crisis, as a spokesperson of Bank, first of all

it needs to understand the causes of such crisis. In terms of controlling, crises might be as

controllable and uncontrollable. Crisis that can be controlled by the organization or an institution

is known as controllable crisis, for example, higher decreasing interest rate might occur as result

of higher money supply, however it can be controlled by reducing money supply by the Nepal

Rastra Bank or conducting open market operation. Similarly, Corona virus is uncontrollable

crisis that cannot be controlled at the intended time. (Musdholifah et al, 2020). Identifying the

correct causes helps to take positive approaches in speedy. For instance, stolen ATM boots might

be as weakness of banking system of Nabil Bank. Or it was fault of its own staff to take care of

live inspection. So, identifying the correct causes would be my first steps as a spokesperson in

Nabil Bank. Secondly, signifying the worst-case scenario can be very helpful in minimizing the

crisis. For example, Nabil Bank’s poor CCTV management might the worst among other

problems. In addition, finding the worst scenario can figure out the weakness of the organization.

So, after analyzing the worst scenario, I would prepare the best action plan. For example,
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maintaining the CCTV of each and every ATM boot and providing security guard can be best

alternative for this problem. Before, approaching the public it is necessary to communicate with

everyone in the corporation. Being unified and process of unification is the core of crisis

management. It coordinates among the organization’s staff through effective communication.

Realizing the problem properly by all the staffs in the organization may rectifies the mutual

misunderstandings and also brings the synergy. (Coombs, 2007).

Developing the deeper relationship with industrial family might be another way to handle

the crisis. It is the preventive step of crisis handling that makes strong bond between the public

and company. (Ha, 2013). So, as spokesperson of Nabil Bank it is necessary to keep this kind of

relationship with shareholders, creditors, lenders, investors, depositors and government. Thus,

my focus here to eliminate the probable events and to increase the other way to minimize the

damages from crisis. (Maal, 2019).

After comprehending the internal environment of the Nabil Bank and causes of such

crisis, as a CEO of the bank, firstly I apologize for the inconveniences felt by valued audiences,

customers and public. Focusing the goodwill and reputation of the bank I would use historical

data bases. Facts and true databases can reduce the growth of the crisis. As an executive it the

main function to make balances between company reputation and disruptive conditions. So, will

convince them about the durability and success of the Nabil bank since 1984 AD, making people

believed that it was only one bank in the Nepal to be invested by foreigners and firs private

commercial bank in Nepal and this kind of serious activities had not occurred before anymore.

Taking it as very unethical case in banking sector I assure people to be depended on our bank.

Announcing that everyone’s deposit is safe with high security. Giving assurance of further

guarantee to the public that this kind of activities would never repeat again. We can ask for help
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to crisis management team for identifying such crisis. Using social media (like Facebook, twitter,

etc.), television, radio blocks and other internet resources, the rumor can be minimized.

Conclusion:

Crisis communication is the process of establishing and maintaining relationship between

the organization and the stakeholders. It is a specific branch that deals with reputation of the

organization and individual alike. Furthermore, it is an initiative that tries to protect the

organization’s reputation and keeps good image in the public. It is an emergency tool for the

organization in disruptive situations.

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References:

Coombs, W. T. (2007). Protecting Organization Reputations During a Crisis: The Development and

Application of Situational Crisis Communication Theory. Corporate Reputation Review, 10(3),

163-176. http://dx.doi.org/10.1057/palgrave.crr.1550049

Ha, J. H. (2013). The role of relationships in crisis communication: The impact of agency-client

relationships and perception of crisis strategies on crisis-related task conflict, performance, and

satisfaction (Order No. 3562739). Available from ProQuest Central. (1377305783).

https://www.proquest.com/dissertations-theses/role-relationships-crisis-communication-impact/

docview/1377305783/se-2?accountid=158986

Jugo, D., Pakozdi, I., & Milas, Z. (2020). Crisis communication consulting: rethinking the role of PR

firms in solving organizational crises. Corporate Communications, 25(1), 34-47.

http://dx.doi.org/10.1108/CCIJ-07-2019-0083

Maal, M., & Wilson-North, M. (2019). Social media in crisis communication – the “do’s” and “don’ts”.

International Journal of Disaster Resilience in the Built Environment, 10(5), 379-391.

http://dx.doi.org/10.1108/IJDRBE-06-2014-0044

Musdholifah, M., Hartono, U., & Wulandari, Y. (2020). Banking Crisis Prediction: Emerging Crisis

Determinants in Indonesian Banks. International Journal of Economics and Financial

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emerging-determinants/docview/2485443364/se-2

Young, K. (2018). Enhancing employee communication behaviors for sensemaking and sensegiving in

crisis situations: Strategic management approach for effective internal crisis

communication. Journal of Communication Management, 22(4), 451-475.

http://dx.doi.org/10.1108/JCOM-03-2018-0025