Are You Ready to Respond to a Crisis?

The World Economic Forum Global Risk Report 2026 does not see this changing anytime soon. Recent incidents in Australia and globally have shown the speed and impact of a crisis can be complex and catastrophic.

‘We weren’t ready to respond’ or the perception thereof, is no longer an acceptable reason for poor performance in responding to unforeseen or foreseen events.

A crisis is defined as an “abnormal or extraordinary event or situation that threatens an organisation or community and requires a strategic, adaptive and timely response in order to preserve its viability and integrity”. In short, it’s the CEO’s, executive team’s and board’s worst nightmare.

To add complication, it’s impossible to anticipate every combination of unexpected events and when they may occur. They could impact people, the environment, assets, reputation or your livelihood, and sometimes in combination.

While you won’t be able to predict every scenario, you can build your preparedness and readiness to respond. So, how do you prepare and stay ready?

A crisis typically moves through three phases, each with distinct leadership priorities:

1. Preparation/readiness
2. Response
3. Recovery

Use this sample checklist for a quick snapshot to understand your organisation’s readiness.

Firstly, imagine a worst-case event hitting your organisation now and consider:

• How would you know you are in a ‘crisis’ or potential crisis?
• Would you and your Crisis Management Team (CMT) know what to do in the first minutes or hours?
• How would you contact each other, who is accountable to lead the response and how do you meet?
• If key personnel are unavailable or it’s after hours, who are your alternate contacts and are they available?
• How do you quickly establish situational awareness to find out what’s happening?

Next, understand your plan:

• Is the above documented in a Crisis Management Plan (CMP) or equivalent?
• Is it current and fit for purpose?
• Do members of the CMT know where it is and how to use it?

A common organisational crisis response structure is essential, particularly one centred on a CMT with clear roles and responsibilities, communication principles, governance and ways of working.

Backed by shared capabilities, processes, taxonomy and language, it enables a grounded response that remains flexible to manage across various situations and reduces the need for multiple separate plans.

Finally, organisations should rehearse and review, run regular exercises and capture lessons learned so you’re truly ‘ready’, not just ready on paper.

The trigger, timing, type, complexity, trajectory and velocity of a crisis are essentially unknowable — your level of readiness should not be.

If your answers reveal gaps in your current readiness, consider meeting with your executive team to agree on an approach and, if needed, seek expert guidance so you can respond with confidence.

Across Round 1 of the ClubEducation seminars for 2026, catch Marsh’s session, Crisis Management – Leadership Readiness Considerations, to learn more practical strategies for preparing and responding to a crisis and leave with a clearer roadmap to readiness.