Syllabus: International Baccalaureate - Individuals and Societies - Business management (Higher Level)
Module: Unit 5: Operations Management
Lesson: 5.7 Crisis Management and Contingency Planning (HL only)

Introduction

Unit 5.7 of the IB Business Management Higher Level syllabus – Crisis Management and Contingency Planning – explores how businesses identify, prepare for, and respond to sudden threats. These strategies are vital in a global landscape defined by unpredictability, from supply chain shocks to reputational damage. The IB curriculum requires students to understand not only theoretical frameworks but also the decision-making pressures leaders face in real time. For teachers, this unit offers rich opportunities to link curriculum learning with real-world events and to embed workplace readiness skills that align directly with Gatsby Benchmarks 4, 5, and 6.

Key Concepts

This HL-only topic requires students to:

• Distinguish between crisis management and contingency planning

  • Crisis management involves reactive strategies when an unexpected and potentially damaging situation arises.

  • Contingency planning involves proactive preparation for potential future events or disruptions.

• Explore the types of organisational crises

  • Examples include natural disasters, cyber-attacks, legal issues, PR scandals, or product recalls.

• Evaluate the importance of contingency plans

  • Ensuring business continuity, maintaining stakeholder trust, and minimising operational downtime.

• Understand the factors influencing a business’s ability to manage crises effectively

  • Leadership, communication strategy, preparedness, organisational culture, and stakeholder relationships.

• Assess the costs and limitations of contingency planning

  • Financial cost, time investment, risk of incomplete planning, and staff resistance.

These are examined through the lens of operations management, but with clear crossover to leadership, HR, and strategic planning units within the IB syllabus.

Real-World Relevance

The post-COVID era has demonstrated the critical role of both crisis management and contingency planning. For instance:

• Boeing and the 737 MAX Crisis: Boeing’s handling of the aircraft crashes involved reactive PR management and regulatory responses, but the lack of an effective contingency plan highlighted operational and ethical failures.

• KFC UK Supply Chain Breakdown: When KFC changed delivery partners in 2018, over 600 stores ran out of chicken. The crisis was well-managed via transparent communication and humour, turning a reputational risk into a brand-strengthening moment.

• Cybersecurity Breaches (e.g., British Airways, NHS ransomware attacks): These illustrate the need for not only technical defences but robust response protocols across departments.

Teachers can explore these as short case studies or task students with comparing how two organisations handled similar crises differently, linking directly to syllabus command terms like evaluate, recommend, and discuss.

How It’s Assessed

This topic is assessed in Paper 1 (based on a pre-seen case study) and Paper 2 (structured questions), using command terms such as:

• Analyse – break down causes and effects of a crisis

• Evaluate – assess effectiveness of different strategies

• Justify – support a recommended action plan

• Discuss – present arguments for and against proactive versus reactive planning

Assessment may also involve drawing connections to stakeholder perspectives, ethical considerations, and operational risk. Students should practise applying contingency thinking across business functions.

A useful approach is scenario-based questioning: “If a business in the case study faced a data breach, what contingency measures should be in place, and how should they communicate with stakeholders?”

Enterprise Skills Integration

This unit directly supports the development of decision-making, problem-solving, and commercial awareness – all key thematic pillars within the Enterprise Skills framework:

• Decision-Making & Problem-Solving
  Students are required to assess multiple options under pressure, interpret data (e.g. risk matrices), and weigh strategic trade-offs.

• Workplace Readiness
  Crisis response mirrors real-world workplace behaviour: rapid communication, role clarity, and interdepartmental coordination.

• Commercial Awareness
  Understanding how crises impact cash flow, reputation, compliance, and market position gives students an integrated view of business dynamics.

Enterprise Skills’ live simulations allow students to experience real-time crisis scenarios with measurable decision consequences, building authentic confidence and critical thinking.

Careers Links

This topic supports Gatsby Benchmarks 4, 5, and 6 by:

• Benchmark 4: Linking learning to careers – students explore roles like risk managers, operations directors, and crisis PR consultants.

• Benchmark 5: Simulated or live employer encounters (e.g. guest talks from logistics or cybersecurity professionals).

• Benchmark 6: Experience of the workplace through realistic, consequence-driven simulations.

Relevant job roles include:

• Risk Analyst

• Crisis Communications Manager

• Business Continuity Planner

• Emergency Operations Coordinator

• Legal and Compliance Officer

These careers exist across industries from finance to healthcare, demonstrating this topic’s cross-sector relevance.

Teaching Notes

Classroom Tips:

• Use role-play or mock boardroom exercises where students respond to fictional crises.

• Task groups with developing contingency plans for hypothetical business scenarios (e.g. data breach, fire, supplier collapse).

• Use past IB Paper 2 questions to model exam command term expectations.

Common Pitfalls:

• Students often confuse contingency planning (proactive) with crisis management (reactive).

• Lack of integration across departments (e.g. assuming only PR handles crises).

• Failing to consider opportunity cost and organisational culture in evaluations.

Extension Activities:

• Invite a guest speaker from an emergency services organisation or corporate risk team.

• Analyse how crisis response differs in SMEs vs. multinationals.

• Link to Unit 5.6 (Lean Production) by exploring “Just in Time” supply chain vulnerabilities during crises.

Recommended Tools:

• Skills Hub Futures simulations (for careers-linked decision-making scenarios)

• News analysis tasks using current events or historical case studies

• Decision matrix and risk impact charts for visual learners