Quiz: Crisis Management Foundations — 18 questions

1. Regarding organizational crisis exposure, select the accurate statements:

A. Crisis exposure should be viewed as a matter of when, rather than if.

B. The survey examined leaders' experiences during the previous five years.

C. Crisis-free organizations are generally expected under normal business conditions.

D. A PwC survey found that 69% of leaders had faced a major crisis recently.

E. Large companies averaged approximately one crisis during each year.

Answer: (A), (B), (D), (E)

Explanation

The PwC Global Crisis Survey reported that 69% of leaders had faced a major crisis within five years, and large companies averaged roughly one crisis annually. These findings support viewing crisis as a matter of when rather than if, while crisis-free organizations are not guaranteed.

2. Which statements accurately describe the Wells Fargo fake-accounts scandal?

A. The federal settlement reached approximately $3 billion.

B. The scandal arose primarily from external technology failures.

C. The scandal was discovered in 2020 and settled federally in 2016.

D. The settlement occurred four years after the scandal was discovered.

E. Internal pressure to meet sales targets contributed to the scandal.

Answer: (A), (D), (E)

Explanation

Sales-target pressure contributed to Wells Fargo's fake-accounts scandal, which was discovered in 2016 and followed by a $3 billion federal settlement in 2020. The discovery and settlement years were reversed in one statement, and the source identifies internal sales pressure rather than external technology failure.

3. The crisis-management course prepares students to:

A. Communicate during crises and recognize leadership well-being challenges.

B. Assess situations and construct crisis-management plans.

C. Focus on financial crises while excluding technological disruptions.

D. Evaluate organizational technology and workplace culture.

E. Identify major social, economic, and technological crises.

Answer: (A), (B), (D), (E)

Explanation

The course covers social, economic, and technological crises, situation assessment, planning, technology, culture, communication, and behavioral or well-being challenges. It therefore does not exclude technological disruptions or limit attention to financial crises.

4. Concerning the composition of the final course grade, choose the accurate statements:

A. Individual participation contributes 15% of the final grade.

B. The group project contributes 20% of the final grade.

C. The group project contributes 25% of the final grade.

D. The final examination contributes 40% of the final grade.

E. The midterm examination contributes 40% of the final grade.

Answer: (A), (B), (D)

Explanation

The final grade comprises 15% participation, 25% midterm examination, 40% final examination, and 20% group project. The midterm and group-project percentages were interchanged in the inaccurate statements.

5. Regarding assessment of the crisis-management plan, which statements are accurate?

A. Creativity accounts for five points of the plan grade.

B. Clarity and feasibility together account for thirteen points.

C. The plan receives twelve points for course concepts and eight for creativity.

D. Use of course concepts accounts for thirteen points.

E. The plan is graded on a twenty-point scale.

Answer: (D), (E)

Explanation

The crisis-management plan is graded out of 20 points, including 13 points for course concepts. The remaining five points cover clarity, feasibility, structure, and detail, while creativity receives two points; therefore, the alternative allocations are inaccurate.

6. A student misses a participation session without justification and another misses the final group presentation without justified cause. Which statements apply?

A. The group is protected from any grade consequence caused by the absence.

B. The unjustified absence produces a zero for that day's participation grade.

C. The presentation absence can also lower the group's grade.

D. The absent presenter receives a zero for the final presentation.

E. Missing the final presentation can reduce the absent student's grade.

Answer: (B), (C), (E)

Explanation

An unjustified absence results in zero participation credit for that day. Missing the final group presentation without justified cause lowers both the absent student’s grade and the group’s grade; it does not assign a zero specifically for the presentation.

7. The team ice-breaker includes which of the following activities?

A. The team prepares a one-slide introduction.

B. Each teammate receives one crisis-related role.

C. The activity ends after students privately reflect on crises.

D. The team presentation lasts approximately five minutes.

E. Each student completes an individual reflection.

Answer: (A), (B), (E)

Explanation

The ice-breaker combines individual reflection, role assignment, a one-slide team introduction, and a presentation lasting under one minute. It is therefore more than private reflection, and its presentation is not approximately five minutes long.

8. Regarding role assignment during the team activity, select the accurate statements:

A. The activity requires every teammate to perform every available role.

B. Role assignments are justified through two written explanations each.

C. Teams may leave some role choices unexplained during speaking.

D. Each role choice must receive at least one spoken sentence of justification.

E. Every teammate must receive a role at least once.

Answer: (D), (E)

Explanation

Every teammate must receive a role at least once, and each role choice must be justified in at least one spoken sentence. The activity does not require every teammate to perform every role, allow unexplained choices, or set a requirement of two written explanations for each assignment.

9. When teams classify a business case, which action(s) should they take?

A. They decide whether the case meets the definition of a crisis.

B. They identify one or more crisis types when the case qualifies.

C. They research cases whose classification remains uncertain.

D. They present the classification without explaining the reasoning.

E. They assign a crisis type before deciding whether the case is a crisis.

Answer: (A), (B), (C)

Explanation

Classification begins by deciding whether the case is a crisis, followed by identifying applicable crisis types. Uncertain cases should be researched, and the final classification should be justified to the class; assigning a type first and omitting the justification are incorrect.

10. Which characteristic(s) define an organizational crisis?

A. It is an unexpected, non-routine event threatening high-priority goals.

B. It is a routine event that produces predictable uncertainty levels.

C. It is a specific event that creates substantial uncertainty.

D. It is an event that concerns minor goals without broader organizational threat.

E. It is a planned operational decision affecting organizational priorities.

Answer: (A), (C)

Explanation

An organizational crisis is specific, unexpected, and non-routine, and it creates high uncertainty while threatening or appearing to threaten high-priority goals. Planned decisions, routine events, and matters involving only minor goals do not satisfy that definition.

11. Concerning the distinction between potential crises and crisis events, which statement(s) is(are) accurate?

A. A crisis event involves a threat after its main damage has occurred.

B. A crisis event describes a threat that remains entirely unrealized.

C. A potential crisis involves a threat that has not fully materialized.

D. A potential crisis requires the organization to have completed its response.

E. A potential crisis refers to damage that has already occurred.

Answer: (A), (C)

Explanation

A potential crisis is an unrealized or not-yet-fully-materialized threat. A crisis event has already produced its main damage, so completed damage does not define a potential crisis and an entirely unrealized threat does not define a crisis event.

12. Which of the following are recognized organizational crisis types?

A. Informational crises involve threats connected with organizational information.

B. Financial crises involve threats connected with an organization’s finances.

C. Environmental crises constitute one of the six listed crisis types.

D. Human-resources crises concern threats involving the workforce.

E. Technological crises constitute one of the six listed crisis types.

Answer: (A), (B), (D)

Explanation

The six types include financial, informational, human-resources, destruction-of-property, reputational, and violent-behavior crises. Environmental and technological crises are not among the six types specified.

13. The organizational crisis timeline comprises which phase(s)?

A. The crisis-event phase covers the situation while the crisis unfolds.

B. The post-crisis phase follows the crisis event.

C. The post-crisis phase occurs before the triggering event begins.

D. The timeline contains four phases, including a separate recovery phase.

E. The pre-crisis phase occurs before the crisis event unfolds.

Answer: (A), (B), (E)

Explanation

The timeline has three phases: pre-crisis, crisis event, and post-crisis. Pre-crisis comes before the event, the crisis-event phase covers the unfolding situation, and post-crisis follows it; there is no separately listed fourth recovery phase.

14. During the pre-crisis phase, which management activity(ies) is(are) characteristic?

A. Threats may grow while warning signs become visible.

B. Organizations respond to the unfolding crisis as its main activity.

C. Organizations prepare for crises during the pre-crisis phase.

D. Most crisis damage occurs during pre-crisis preparation.

E. Organizations focus on investigating explanations after order returns.

Answer: (A), (C)

Explanation

During pre-crisis, threats grow, warning signs may appear, and organizations prepare for and prevent crises. Most damage and unfolding response belong to the crisis-event phase, while investigation and learning belong to post-crisis.

15. Which statement best reflects how organizations commonly allocate attention across crisis phases?

A. Organizations commonly overemphasize the crisis event and underinvest in prevention and learning.

B. Organizations commonly treat the crisis event as less important than prevention.

C. Organizations generally devote balanced attention to prevention, response, and learning.

D. Organizations commonly prioritize prevention over handling the active crisis.

E. Organizations generally invest more effort in learning than in crisis response.

Answer: (A)

Explanation

Organizations commonly over-invest attention in the active crisis event while under-investing in prevention and learning. Effective crisis management depends on all three phases, so the other allocation patterns do not reflect the stated tendency.

16. Which areas are included in the remaining crisis-management sessions?

A. Culture, technology, and post-crisis phases are included in the remaining sessions.

B. The remaining sessions address emergency response without post-crisis learning.

C. The roadmap focuses on crisis communication while excluding next-generation planning.

D. Decision-making under uncertainty and crisis leadership are included in the remaining sessions.

E. Preparedness and organizational vulnerability are included in the remaining sessions.

Answer: (A), (D), (E)

Explanation

Preparedness, organizational vulnerability, decision-making under uncertainty, and crisis leadership are listed as remaining areas. Culture, technology, post-crisis work, and next-generation crisis-management plans are also included. The roadmap therefore extends beyond emergency response and includes post-crisis learning.

17. Regarding the semester-long crisis-management plan, which statement is correct?

A. Each team completes its crisis-management plan during one final session.

B. The plan is prepared before teams select an organization.

C. The plan concerns a common organization chosen for the entire class.

D. The plan is developed progressively across several course sessions.

E. The plan is replaced by the final group presentation.

Answer: (D)

Explanation

The crisis-management plan is built progressively throughout the semester across multiple sessions. It is not a single final-session exercise, and it is developed for an organization selected by each team. The final presentation culminates the plan rather than replacing it.

18. What does the final group presentation require each team to do?

A. Apply the team’s planning work to its selected organization.

B. Submit an individual reflection instead of a team presentation.

C. Present a general theory of crisis management without applying it.

D. Explain how it would manage the crisis facing its chosen organization.

E. Show the culmination of the team’s crisis-management plan.

Answer: (A), (D), (E)

Explanation

The final group presentation requires each team to explain its management of the crisis facing its chosen organization. It represents the culmination of the crisis-management plan. A purely theoretical presentation and an individual reflection do not describe the required deliverable.