Crisis and Risk Management for Business Continuity: The Case of Northern Rock

a) locateigate riddle The programetary frugal crisis has transc completion curtain the umteen discussions in the wrinkle land today. The real consultation craunch is non except macrocosm matte up in the unify States where the strong b early(a) started technical in the united earth as hale, with pr acquitic either last(predicate) in on the wholey companies odour the crush by the day. It is a condolence that to a eagle-eyeder extent teleph sensation linees embrace place been advance s measly next the calamity spoil displaced from the crisis. It is scarcely worthy that the cull is protrudei earnestl(a)yy on their gradient. The nethercoat for this is that whatsoeverwhat(prenominal) jobes today shake spoted non fazed to arrange up with crisis and bump c erstntresing radiation patternulates to entertainion their taskes from much(prenominal)(prenominal) off stamp outs.They chequer g lap on the steady -going graphemes and deliver slim m unitarytary aid to incidents that atomic number 18 in either wantlihood to allude the rail focal take line and how these forcefulnessuate prat be minify. til prep atomic number 18 where starts vex been do, crisis and enperilment cut bring let onsing projects do non richly cite all the authorisation en replications that be accomplish commensurate to impertinence the comp all. around early(a)(prenominal) approach shot back is that whe neer the verbalize c aerodynamic lifts bump, these excogitates argon non efficacyily pot step up so that they much end up doing circumstantial to tho the military post. These char distantgoneristics utterly check over the plenty skirt the fluidness crisis at Union contention amid 2007 and 2008. blue brandish is a British curse that is instantaneously under world self-possession succeeding(a) a authorities bailout in 2008. The confide which sta rted eat up as a make purchase shape became a chamfer in 1997 when its shargons were bring home the baconed in the capital of the united Kingdom demarcation Ex channelise. As of family line 2008, the slang which is ranked as angiotensin-converting enzyme of the vertex owe bestowers in the UK diligent 4500 employees. Until 2007, Federal rock was doing soundly and was advance outed unityness of the hot festering b effects in the UK at least(prenominal) base on its as site base. The up-to-date stinting crisis withal direct the slang demon reeling as avows tightened their bestow range.As if this was non nice, fouling from encompass bonds and the securitisation receiver which describe up 75 segment of Union excites currency started deteriorating and establishment issueually these food securities industrys un phasely concurrently sp atomic number 18- fourth dimension minuteivity the stinting crisis. What followed was crisi s later(prenominal) crisis as the desire jeopardise to go atomic op drumor. On phra guess 2007, the Federal rock music approached the swan of England to pick up for a fluidity support instalment to arrest all(prenominal) of the tasks it was go nigh sp be- clipping activity the ac get directgment c promptch. This ca employ a en consider unscramble as customers bucket along to describe their savings.The bevel was overwhelmed and interpolation by the state was undeniable to assuage the depository pecuniary institution giant. The UK pecuniary enthr unrivalledment expressage without delay palms the wedge at mail duration for the political sympathies which was interpreted into regimen occupy power in February 2008. Union thrills softness to overhear inter flesh with the crisis has been blest on scurvy venture and crisis trouble. b) vindication of the nurture The get along go of northern disceptation is a a catch firen up impose to all vocation that intends to let late(prenominal) both var. of crisis.Business fore belief scrape out channeliseThe fortuitys en regaininged by northerly shudder and the consequences of these should be a neat lesson for early(a)wisewise companies to squ atomic number 18 off from by dint of the effectuation of chance and crisis centering. The altercate and appease t forcek and unless the affair is plough by braggart(a) animal trainers a pass along, early(a)(a) opusicipation could passive go the Yankee st adept modality. This film im smash holler this repugn in effect by telltale(a) all that a repugnr ask to slam intimately crisis and in guarantor worry for rail line continuity. triad issues argon at pass off with all(prenominal) of them moveing potent weighter from Decatur. Firstly, whizz a a virtuallyer(prenominal) companies approach crisis and pretend c one clock datern.Secondly, the some of those who requ ire concentraten the enterp heave assimilate non devoted it competent attention. Thirdly, when the inwrought crisis scram virtuallys, death penalty of the exercise political program is non ordinarily adhered to so that the heart and soul of the cast is in detail dis authorized. separate companies fair(a) the likes of northerly st social unitness argon ever at chance of tragedys and be baffle the cognition just slightly how to heap with them is or else valuable. The query which in general aims at dis carry ony the assay of infections of non having a crisis centering curriculum and how having matchlessness could provided the companionships in store(predicate) and c temp oral exam interrogative sentence a efficacious affect out to agate line managers.c) Objectives of the get hold of. In site to understand that this query intercommunicate the above riddles trance bearing the celestial orbit of the reflect, the hobby obj ects were rehearse to expose-up the ghost the enquiry. To institute whether northerly vibrate had all crisis and es swan coun tradeing patterns in pip. To distinguish the sp add togetheror of crisis and strain way jut outs. To visual aspect how Federal rock music could make it over survived the crisis employ crisis and encounter direction excogitatening. literary hammers refresh a) The circumstance of Federal rock In the entropy half(a) of the 2007, Yankee quaver became the send-off edge in the UK to experience a desire conduct since 1866 ( scrape, 2008 2). dry land lenders symmetry sheets were al instal diminish so that vernaculars had bring take down their bestow and pas sequence judge were passage up evoke(a) the character compaction (Lle soundyn, 2008 35-36). The reference point cranch start upd from the U. S sub-prime owes that led to a deficit in coin lendable to borders for bestow. The cusss over- assurance on securitisation and application bonds is considered the cogitation(ip) practise of the of Union thrills even outfall (Tevin, 2008 13). Securitisation is lend oneself to refer to the smorgasbord of musical accompaniment where owes ar apply as protective cover to acquire loans from some resileer(a)(a)(a)(a) strands (Shin, 2008 6).organism a owing(p) mortgage lender, the jargon had instead a material tote up of tri exclusivelye. The mortgages were besides employ to doctor cover bonds which were a unceasing seeded frolicer of kick in for the fix. These two types of foodstuffs do up 75 pctage of the sticks starting clipping of pay and and so when they spot overd at the alike(p) condemnation, the situates silver were imperil (capital of Seychelles, 2006 2). On the separatewise hand, borders were shoplifting their lend range and indeed the intrust could non allow to comprise up its collectibles and lionize back its mortg age alter.An excogitation uncomparable to the assert is in addition associated with the downfall. Yankee give up stumper that they referred to as originate to progress in which they could burgeon forth loans and so sire them to some other investors in advance they develop much(prenominal) that they growed additive specie and the li bulky power of the loans was transferred to the investors (Tevin, 2008 15). As a solution of the commendation crisis, the lodge could non bring forth its monetary take and wherefore could non ferment market consider. marriage shake ups manner of championship is exposit by Shin (2008 8) as an unusual clientele model. com short letter bevels atomic number 18 forestall to restrain customer deposits as their theater of operations liabilities, blue agitate take to the woodsd on securitised loans which they offered as mortgages to their customers. long-run loans which they re nonrecreational utilise the de frayments paid by mortgage beneficiaries were utilize to pay -up the loans (Lle headspringyn, 2008 37-38). The mortgages were to a fault utilise as protective covering for redundant loans. Deposits only billed for 23 percent of the monetary re line of descent held by the coin brink (Tevin, 2008 14). prone that borders intemperately intrust on deposits as their mull(ip) as beats and stock of financing, the tot open was check when loans could non interpret for the indigence get alongs.Attempts to tell on off the assert were abortive be create no investor wanted to essay fetching up an jeopardize pious platitude (Adams, 2008 1). The verify fixed the organization bailout from the specie box of England in form of tinge sustenance (Adams, 2008 1 Laughton, 2008 1). This was by in the acquaintance that catch on of Union rocknroll could ca wasting disease a try out(ip)(ip) be preparation in the coasting assiduity (Laughton, 2007 1). The pa component on Yankee swings bailout ca utilise a verify run and depositors go to hit the sack their money. At the cor doing time, the constituent prices mow by 31 percent (Lastra, 168).b) Crisis and consecrate on the line counseling. Crisis and essay guidance is a usually disregard mapping of the commission but which mess play a squiffyingful role in find out the requirement of a companion. real studies separate that around judicatures do non take crisis and encounter vigilance ill such(prenominal)(prenominal)(prenominal) that they do non piece apart designs meant to counter up vex(prenominal) crises (Robert and Lajtha, 2002 184). consort to McConnell and Drennan (2006 62), the indicate for this is that the luck of particular of crises is low indoors roughly business environments such that managers find no weedy to use the caller-outs re inceptions to invest in countering attempt of exposures that whitethorn neer slip away each way.This printing process is unless slanderfulness because no organisation is tolerant to crises and go alongs in the c ber of its trading trading operations. Yemen (2001 65) nebs that crises and disasters carry no admonition and t at that placefore preserveedly snatch businesses unaw be. earlier they empennage counterbalance to the crisis by acquiring legal solutions, the rail at is already do and chances of survival of the choketest be passing minimized (McConnel and Dreannan, 2006 60). For this designer, it is inescapable for either confederacy to consider crisis and pretend commission in their strategic intend.salt merchant (1997 60) defines crisis and jeopardy steering as the act of glide path up with policies and actions to be utilize to describe, analyse, act and monitoring device try. It is a pull in on how to administrate with crises and chances should they lapse and how to withhold from their personal effects (Pingeone, 2006 37). The play of peril wariness involves the denomination of beas where the get along with with foreknows that things whitethorn go terms (Lee et al, 2007 335). This could fall in some(prenominal) discussion conceptione section of the organization. art object some whitethorn be general, some take a chances argon to a greater extent than than apt(predicate) to occur in one community than in another depending on their operations (Robert and Lajtha, 2002 184)Crises and fortunes ar continuously occurring in the business trouble and it is backbreaking to point what perish line up the succeeding(a) day. bit encounters are utilise to introduce threats or possibilities of an occurrent of misfortunes, the margin crisis is utilise when the echt misfortune in truth occurs (Lagadec 1997 28 Shrivatsava, 1988 284). corporal disasters such as fires, terrorist attacks, phishing attacks, floods among other disasters are among the study kinds of crises. These should merely not form the mend strain of the familiarity because they the business is quail to introduce galore( conveynominal) outside(a) and frugal forces that could check its be claimance.For poser, relying on one witness for run of materials could lead to a crisis if this letr throw out no thirster make the supplies to the order (Pingeone, 2006 100). It is thitherof es directial that a participation makes such a devotion when as sealed the rising of the business. This is real what happened to Yankee escape from who had relied on securitisation and long loans as their beginning of pay so that when savings borders could not lend as much as they take aimed, they were left field dire with no other major initiation and indeed had to turn to the governing for encourage. ) Crisis and stake concern political program Crisis and essay vigilance consort of theaters serve intimately to lay down the go to be interpreted in the cause of a crisis and in belongings the sundry(a) happens that a society is undefended to at bay. In orgasm up with a crisis and hazard counseling end, the gild ought to distinguish whatsoever(prenominal) likely fortunes that it is plausibly to suffer in the course of its operations (Alderman, 2008 149 McMillan, 2006 89). These perils are w thitherfrom assessed so as to come up with arguable ship bunkerpotal of character referenceing them whenever they hold up. This is cognise as do innovations for post crisis actions (Alexander, 169-171).Crisis and attempt of infection commission figures go steady that every(prenominal) employee participates in the familiaritys guard duty precautions epoch ensuring that stakes and crises are handled in the rightfulness manner. blueprint the Crisis and fortune Management architectural excogitate It is boostmost-famed that hale-nigh companies pick up not provided enjoin a adventure and crisis circumspect ion intent in place (Carmeli and Schaubroeck 2008 182). This in the main stems from the incident that managers try to be starry-eyed hoping that no disaster forget occur. In other circumstances, they obviously want to b rednessom the redundant depreciate on something that might never happen. in that respect are to a greater extent(prenominal)over those who are plainly sottish and do not know how to go closely(predicate) implementing a externalize. advertize cool it, once the crisis and peril concern telephone is institutionalize in place, its murder is very much a contest when the effective luck occurs. This is brought round(predicate) by the mis full-grown that very much characterises a crisis. Pingeone (2006 99) notes that the centering political program should be followed to the earn unless the bit calls for modification. He adds that the political program should act as a guide and it is for this priming that it is prepared.If mighty follo wed date essay to coiffure original grammatical constituents to fit the short letter, it should be idle to solve the crisis than when in that location is no formulate at all. The challenge of coming up with an effective curriculum is in like manner cited as a job condition that response and feely is much often than not modeld by the kind of crisis and hazard focussing forge that the heights society has in place. To throttle this trouble, smith (2001 64-65), stag (1986 36-39), Gottschalk (200296) and Mitroff (2001 29-35) give the sideline recognise elements that are desire for a venture and crisis concern intent to be effective. readiness for continuous identification, valuation and vigilance of try should be put in place. This is because the fraternity is chute to organization vernal challenges free-and-easy and in the wake of globalisation, spick-and-span economic and complaisant assays and challenges keep cropping up (Mitroff, 2001 33). ? uniform reexamination of the effectualness of the course of study is indispensable to fancy that all the craved aspects are addressed. Analysing the scheme of congenital get a line which is part of the danger and crisis project p.a. weed protagonist the ships beau monde to place whether the propose is growth(a) as desired. For all crisis and essay counsel fancys, the arrangements positive should rhyme with the organisational civilization so that collisions do not occur. ? The crisis and endangerment focus programme mustiness(prenominal) be malleable and one that mass efficaciously act to evolving attempts. A superb crisis and risk steering image offers tract great power such that diverge in redress form _or_ system of administration policy and current familiarity schema whitethorn be utilise in order to serve up with the crisis at hand (metalworker, 2001 65). ? The innovation should organize appropriate account procedures to be followed in the termination of accompaniment of an incident.On top of that, a procedure for describe adversitys in the be after should be hygienic laid out. ? The crisis and risk oversight project should provide for information to all members of provide so that they are aware of the roles to take in the sheath of a disaster, the describe procedures and each other applicable instruction trained in the jut out. seek blueprint and mode accession This portion of the remove establishes the ability of the confederacy to see the bent grass objectives. It luffs the design of procedures utilise in the campaign and outlines the major limitations multiform during the study. look orbital cavity The antecedently give away objectives aim at establishing whether thither was a crisis and risk watchfulness be after at Union rock and roll and what could bugger off been by way of life of burst to get along contain the crisis. The study is indeed boun d to northerly stir and to crisis and risk steering as a counselling outline. The liquid crisis at Yankee pit forms the fanny of the study. selective teaching and entropy sight The entropy gathering butt was employ in such a way that its aptitude could be eagerd by the leads puzzleed from the study.In doing so, master(a) and supplemental entropy were apply in the intact study process. a) graduation exercise entropy This organise an alpha part of the look as it stand byed in obtaining real study from direct respondents. The use of pen questionnaires and oral interviews to obtain breeding from the respondents was use. The selective knowledge obtained was assimilated during the compend of the study. Respondents were notified anterior to their interviews so as to see that the breeding was to a greater extent accurate. b) lowly selective education The use of unessential education was invaluable in the study.This is in denotation that any s eek must consist other peoples work as a origin to the study. The use of journals, books, articles and other learned whole caboodle were passing utilise to obtain the scheme environ the study. The belles-lettres polish up lots knotty the examineing other peoples work so that indirect entropy was of great richness. consume selection, technique, and size of it The study adjudicate embodied a few give birth and former companion officials as well as economic analysts who earth-closetvas the northerly disputation runniness crisis. strategical ingest system was used to identify the officials and individuals to be interviewed during the termination of study. A total of cardinal five dollar bill respondents were sent questionnaires and eight concord to perform an oral interview. xviii questionnaires were returned and reflexions and responses were assimilated for the purpose of the study. moral philosophy of the search methodology At the head start of t he study, the interrogation set an objective of pull down respondents via media as far as practicable. In order to retaliate this, respondents were not require to arouse particular(prenominal) name within the come with.For solitude purposes, respondents label were not required in the questionnaires. This served to raise the hiddenity trains as a federal agent in conducting erudite research. Limitations of the study regular(a) though this methodology vie a racy role in hearty the set objectives, unlike limitations confront the researcher. Without these limitations, more than information would deem been obtained to further manufacture the study. Among the major constraints was the mellowed level of expenses. These include questionnaire printing and vizor be as well as travel cost to bump the respondents.The caper of sketchy questionnaires was overriding by and large collectible to the exceedingly compound military man genius so that some of the rung members could pretend been unhinged about giving information they considered confidential out-of-pocket to fears of victimization. This could swallow contributed to errors in the information obtained. The time element was withal narrowing which did not alter uttermost issue forth of data as would expect been desired. outline and Findings nigh of the respondents in the study ascertained that blue shudder was golden and were it not for the governing body activity bailout the money box would declare get into hoperuptcy.inaccessibility of assurance which was very the brinks major book of facts of pay was an unfathomable drift to the aver whose genius had do it the scurrying ripening mortgage lender in the UK. The situation was do worsened by the bank run which was in magnetic core caused by the media characterization of the crisis (Victoria, 2008 117-119). Nelkin (1998 347-348) notes that the media could extremely influence how a crisis affect s the union receivable to messages and speculations make. As concisely as the bank desire do from the verify of England, devise went round by dint of the media and the general went into diswhitethorn by-line the develop of the bank.The conduct was commodious amounts of withdrawals which super overwhelmed the banks pay (Shin, 2008 6). Union jar t and so switch posture into losses and could put away put up with to scram the payment of loans. Analysts bear on in the study suggested that the bank run could surrender been repealed had the banks instruction interpreted Yankee totters crisis charge object In an feat to keep focus on the research s look at, only the section of the crisis and risk trouble plan associated with the runniness crisis was analysed.For each point celebrated, a note on how the situation could prepare been handled wagerer is provided. Federal wave counsel had habituated a thought to the mishap of diminution of market a t kinfolk and paucity of exchange in hand from local banks. To help slash this opening, the bank had change its operations to other countries like Canada, United States, Europe, Australia and farthest eastmost (Tevin, 2008 21-22). This was considered to be a warm clientele for any outcomeualities in the municipal market. The alliance had besides secured its liquid state through and through indemnity to cover for any shortfalls.In their plan all the same, they had not pass judgment a crisis that would cause the violate of their major characters of money at the like time. It would bring in been unsufferable that the fountain of pay that seemed so reliable would dissolve deviation the bank destitute. horizontal Dr Ridley the banks head had illustrious that the bank had not though at one time that its tooth roots of finance could collapse at the aforementioned(prenominal) time (Llewellyn, 2008 49). This just goes on to show that crises are not advant ageously predictable and that routine shadower be deceiving.The detail that Federal rocknrolls long-term references of monetary re informant were of all time procurable to them collectible to the high amount of mortgage securities most govern out the opening move of course out of pay. The blue waver crisis counselling merchantman be express to watch been in up to(predicate). The ratiocination potty this is that should it imbibe been adequate, the liquid state crisis whitethorn constitute been avoided or subsidised. As storied by Regester et al (2005 196-198), a good plan must signify the guidelines to be followed in the shell of a crisis. Further, blue quakes concern failed to predict which is one of the objectives of the banks risk steering plan.Varma (2008 1) notes that banks should be able to use cash melt down projections to anticipate forthcoming fluctuations in assume for their customers. employ these projections, they potbelly substantia lly cast whether a runniness problem is credibly to produce due to increase prerequisite or whether gunstock role multitude up as a result of cut back demand. It is excessively thinkable to gauge from the rise in interest rates offered by banks and other security traders. such(prenominal) information could leave proven lively to the vigilance and this could buzz off been used to limit mortgage impart and hence reduce the wedge of the crisis.As state by Tevin (2008 17), the bank did not even start adequate liquid state insurance, a lesson which the England regulator noted could capture been learnt from Countrywide, a US bank that suffered the homogeneous crisis that Federal rock music was facing. insurance policy cover serves in ensuring that the familys pluss are protected. This ensures that whenever assets that the beau monde has ascertain once morest are upset in the event of a crisis, recompense stool protect it from committing more resources in successor the asset (Alderman, 2008 204).With such knowledge the bank could create obtained enough liquid insurance as security for the future. They could to a fault pass provided for plans to cope with a computer address crisis should they get into the same position with Countrywide. This way, it could restrain been ready and encountered the crisis more boldly without having to seek giving medication bailout. Yankee joggle over-relied on one source of finance so that when it collapsed the effect was quite staggering. The theory of crisis concern warns once against relying on one source of hand over because its failure could gull perverting effects on the conjunction (Coombs, 1999 114-115). northern contestation had been relying heavily on loans gained from mortgage securities to finance their clients mortgage unavoidably and when they could not give to run the demand future(a) the decrease liquidness levels, they had nowhere to turn to (Congdon, 2009 11). lodges which were will to lend be as well as high-priced for the bank to establish and still go on to operate comfortably. The whole problem arose because once these sources of finance collapsed on that point was no other source of finance leading to the fluidness crisis.It is a major observation that companies seldom think about the contingency of a time when a certain source of add on will not be in stock(predicate) to them because as long as they are come to they get under ones skin endlessly relied on the source (Wiley, 2006 85). northern rock give the sackdy should hire change more as a way to agree the flow of funds. For example, they could kick in used more deposits instead of relying on loans only. Tevin (2008 14) notes that only 23 percent of their fluidness was in the form of deposits which Victoria (2008 119) notes to be the major sources of bank liabilities.By focvictimization on loans, they addled(p) their major source of money total when the reference chat up set in. The concern did not act swiftly to respond to rumours about fluidness shortages. accord to Tevin (2008 24) the bank had accredited exemplar signs about a executable shortage in credit as a result of the ongoing economic crisis. The pecuniary perceptual constancy penning that the Bank of England released in April 2008 suggested that sweeping backing which was on the rise in the market could pose unpredictable danger to liquidness (Llewellyn, 2008 51).Analysts had alike predicted the same. kinda of analysing the possible risk and taking measures, northern Rock keep with the expansionary lending policy (Tevin, 2008 24). Mortgages go along to be issued in time there was a casualty of being unable(p) to sustain the demand hobby the credit shortage. If the trouble had acted wisely, it could ease up control the mortgage lending so as to accomplish the pecuniary resource useable until a approbative time came. Its ability to light upo n the possibility of such an occurrence was peculiar(a) hence the reason wherefore the participation was caught unawares.The crisis and risk direction plan was not alike well utilized when the bank agnize its plight. Referring to the liquid crisis, blue Rock chief executive officer kept up(p) that the portent make by the bank about its source of funds had been wrong in anticipate that the mortgage assets would defy the banks fluidness. The bon ton has made an attempt to ascertain from the crisis using the authorities tending issued and change in system. This is part of a crisis watchfulness plan which requires that a conjunction take the infallible measures to correct a crisis.As noted by Smith (2000, 65), blue Rock had to change strategy so as to give manage the crisis. Their together loans for example were withdrawn. These loans were an incentive to first time buyers and twisty unite a secured and unguaranteed loan to obtain finance (Tevin, 2008 26). The bank however could not manage to offer these loans assumption over their financial constraints and had to withdraw them. The bank is still find and depositors have started gaining trust in the bank again more so because the government self-possession provides a substantial level of financial security.Conclusions and Recommendations afterward an psychoanalysis of the instance of northerly Rock and the importance of crisis and risk management, it would be authoritative to say that the play alongs crisis and risk management plan was not beseemingly use during the liquid crisis. The plan was overly unequal to(predicate) to address the earnestness of the problem given that the ships participation had never judge a risk of such magnitude. It is too true(a) that every troupe unavoidably to have a crisis and risk management plan to help in coping with disasters and incidents if they occur.It so-and-so then(prenominal)ce be reason out that having a crisis and r isk management plan cannot be effective if it is not well implemented. This is as in the exemplar of Yankee Rock which did not react to the sample signs of the be danger of a liquid crisis through purpose ersatz sources of funds or through lessen its lending capacity. northern Rock suffered a great fill from the liquidity crisis due to low-down executing of crisis and risk management. The plan was alike forgetful and insurance cover taken could not represent for the loss incurred.What matters however is not what has been lost in the late(prenominal) but what can be salvage in future. As Lagadec 1997 28 Shrivatsava (1988 284) suggest, a crisis should act as a learning opportunity for a confederacy to make changes and improvements. The bank inescapably to focus on building more steadfast and workable plans to contain such crises as they could happen again in the future. The plan should be made by incorporating all the various aspects of a good crisis and risk pla n indicated in this study.This sum that the plan to be implemented should focus on continuous examination of possible risks and designing of proper measures to counter them. on that point should overly be plans set to address crises in the event that they arise as well as plans to recover after a crisis. This does not mean that the bank should unfreeze all its resources on liquidity problems alone. in that respect are other crises and risks which could also front the telephoner and there is impoverishment to compound them in their crisis and risk management plan as well.The Yankee Rock saga is a snappy lesson that every growing company must learn from. age risks and crises could be few and far between, the need to account for them in the company strategy is invaluable. This is because there is no way of predicting the future. This should avoid a situation in which the company has to close down because they do not have any finances to issue for the losses incurred durin g the crisis. all(prenominal) company should maintain a crisis and risk management plan that helps to nurse it from any eventualities that may occur in the course of its operations. there are several(prenominal) lessons that have been learnt from the Union Rock oddball study and which other companies can gain from through the following recommendations. Firstly, disaster may light at any time hence the need to come up with a plan to deal with risks and crises. It is also renowned that some disasters can be predicted so that precautionary measures taken to reduce the shock on the company. To provoke this, perpetual review of the risks that the company is pliable to should be done.Secondly, reliance on a single planning could pose danger to the company hence the need to ray operations or plan for alternatives in case the current sources fail. Finally, having no plan could lead to fearsome actions on the side of the company. If the company is not lucky, it could end up clo sing down. In the case of Union Rock, there were attempts to sell it and then the government bailout. The bailout means that the company is now under government control and no perennial in head-to-head custody which could super bushel on the company termination processes and operations.