4 Advances in Developing Human Resources Month XXXX The first phase, signal detection, requires leaders to sense early warning signals that announce the possibility of a crisis. In the second phase, prevention and preparation, leaders are expected to avert crises and prepare, should the crisis occurs. The third phase entails containing damage by keeping the crisis from expanding to other parts of an organization or its environment. During the recovery phase, leaders are responsible for implementing short- and longterm plans designed to help resume business operations. Finally, in the fifth
phase of crisis management, leadership encourages learning and examines the critical lessons from the crisis.