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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.
A negative financial situation characterized by a lack of cash flow. For a single business, a liquidity crisis occurs when the otherwise solvent business does not have the liquid assets (i.e., cash) necessary to meet its short-term obligations, such as repaying its loans, paying its bills and paying its employees.