The Six Point Crisis Management Plan

A normal pathway through life will deliver some unexpected crises.  To say they are unexpected is perhaps not correct as we all expect to face problems at some point.  It’s just that they arrive unexpectedly.

As financial planners we stand alongside our clients when these events occur and help them through. That experience has helped us develop some strategies that we hope might be useful to others.   This is our approach.

1. Get the facts. Emotions in these situations run high and it is tempting to make quick decisions without a full understanding of the situation.  There is always more time than it seems, and this time should be used to gather information to properly understand what is going on.
2. Assess and engage with your support network. Many minds are better than just one, and the emotional support that friends, family and professionals provide can not only be motivating and constructive, but personal energy is required to get through these events.  Your network helps provide this energy.
3. Work out your potential options. This is one of the hardest aspects, as we are inclined to jump to the so-called obvious solution.  Equally, the impetus to take action is strong, making this phase even harder to complete properly.  Be careful to make sure the options you generate are realistic and possible to implement. Make sure you consider every alternative.
4. Choose your preferred option and then write down a task list that will get it done. This phase can be overwhelming; the simple act of writing a task list and determining the order that things are to be completed can be liberating.  Half the challenge is getting a plan of action sorted in written form.  Then, doing one task at a time allows focus on activity as well as the added benefit of being a distraction from the crisis itself.  It is often the feeling of helplessness that creates stress rather than the event itself.
5. Look after yourself. You need to be as strong and able as you can be, because managing a personal crisis takes energy.  This is a time to be conscious of sleep, diet, exercise, connecting with friends and family, staying involved in community activities and ensuring you participate in activities that give you pleasure.  Curiously, these aspects are so easy to throw away in these moments of crisis.  Have a plan to keep these things in your life.
6. Finally, it will end. Crises have a habit of being temporary.  At the time it often feels like they will go on forever.  But they do end.  Knowing it will end and knowing you will only be in this state for a finite period, helps you get through.  Having a plan gives confidence that this too will pass.

Obviously, all situations and our personal circumstance are unique, the above gives some guidance to the way we work through things with our clients.  We recommend talking with loved ones and/or your advisers to get a tailored solution for your situation.  

As they say, a problem shared is a problem halved.