Define the term "smoldering crisis" and give three examples of situations that would fall into that category.
What will be an ideal response?
A smoldering crisis is a problem or situation that is not generally known inside or outside the organization. If or when it is revealed, it may generate unfavorable news coverage and cause unanticipated expenses or penalties.
Smoldering business crises, prompting a call to the crisis management team, may include:
• Regulatory agency violations that may generate fines or legal action
• Customer complaints of misconduct that receive media attention
• Undercover media reports or government agency investigations that receive media attention
• Revelations by disgruntled employees that receive media attention
• Serious internal problems that require disclosure to stakeholders and may therefore receive media attention
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