Organizations not prepared for crisis, study says

September 4, 2008

Many businesses and organizations lack programs that would help them prepare for and recover from crises, says a study by the Center for Catastrophe Preparedness and Response at New York University and the Public Entity Risk Institute.

"Crises ahead are increasing both in complexity and frequency," Paul Light, the principal investigator of the project, says in a statement. "Yet, levels of crises readiness among organizations remains low and poorly understood."

The study lists several recommendations for improving crisis readiness, including:

* Giving crisis readiness the same organizational priority as fundraising, marketing and sales.

* Making crisis management a separate part of the organizational budget.

* Giving crisis managers the power to make and enforce decisions.

The study also says Congress should amend the Stafford Act, the primary law governing disaster response, to increase support and speed up the application process.

"Predicting Organizational Crisis Readiness: Perspectives and Practices toward a Pathway to Preparedness" includes survey results from government, corporate and nonprofit leaders.

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