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How crises challenge leadership
Daily FT
|December 08, 2025
DISASTERS are unexpected events which occur, sometimes without warning, and demand those involved to change their normal daily activities to an immediate and focused response to the event.
A crisis strips away the comfort of routine and forces leaders into high stakes, accelerated decision-making environments
While forecasting weather-related disasters has been improved in the recent past, it is far from perfect. Continuous improvements have been made but the risks have also been increased. No two disaster responses will ever be the same because no two disasters will be the same.Most leaders are trained to lead corporations. In the face of crises, like the recent floods in Sri Lanka, people choose to react differently, and we can group them as follows:
1. Wait and see approach: if the crisis does not affect me or my business, just wait and see how others sort things out.
2. Criticise and even sabotage the work undertaken: this is simply the finger pointing approach. Some appear to enjoy this without realising in crises, good enough solutions are accepted without waiting for perfect solutions. Time is of essence.
3. Seek chances to profit, even if it means exploiting others’ difficulties. Political point scoring is common. Decisions taken are criticised using social media.
4. Act if directly affected: attend to looking after self and the immediate family only if they are affected.
5. React immediately and take responsibility and do whatever possible to ease the burden of others. Do whatever possible with the aim of contributingto the recovery.
Whether it is the Tsunami, COVID-19 or recent floods, only some belong to the last two groups. The others are just observers waiting to see how things work out.
“Any fool can criticise, condemn, and complain but it takes character and self-control to be understanding and forgiving.” —Dale Carnegie
Why crises test leadership differently
A crisis strips away the comfort of routine and forces leaders into high stakes, accelerated decision-making environments. Unlike normal operations, crises involve:
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