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A crisis is the time to follow the crisis plan and make use of your preparations. Determine if a crisis is occurring. Identify the type of crisis that is occurring and determine the appropriate response. Activate the incident management system.
Figure 3 depicts a realistic. decision-making tree surrounding financial crisis management. When a crisis occurs (stage. 1), particularly if it involves a bank failure that becomes the focus of media attention, it is. important to determine if it is a material event (stage 2).