Question

In which stage of the Anatomy of a Crisis does the corporation receive some warning, however subtle, that a crisis is lurking?

a) Recognition
b) Inception
c) Response
d) Recovery

Answer 1

The Inception stage is where a corporation receives subtle warnings of a lurking crisis. Recognition lag is an example of this, where policymakers may not notice economic problems until well after they begin.

Step-by-step explanation:

The stage of the Anatomy of a Crisis in which a corporation receives some warning, however subtle, that a crisis is lurking is called Inception. During the inception phase, there may be indicators that a crisis could develop, but these signals can often be difficult to interpret. As an example, the delay between the time a macroeconomic problem, such as a recession, arises and the time at which policymakers become aware of it is known as a recognition lag. This concept was notably evidenced during the 1990-1991 recession, where the Federal Open Market Committee (FOMC) only noticed the slowing in economic activity months after the recession began, highlighting the challenge of detecting the early signs of a crisis.