Crisis avoidance, containment and control: A report from the financial services front

Crises and crises management is discussed from the perspective of the financial services industry. The situations vary in scope and complexity. They illustrate a very important principle: with thoughtful contingency planning, prompt access to reliable and necessary information, and active and coordinated responses by management, some crises may be avoided, others can be controlled, and the consequences of nearly all may be contained. In all the cases, the Federal Reserve has a clear, overriding objective - the maintenance of financial stability. Planning for crises can yield clear benefits, and one important way to plan for future crises is to learn from the mistakes and successes of the past. A study of prior crises will show that corporations and governments can take affirmative action both to avoid them, and to mitigate the consequences resulting from those crises that cannot be avoided.