Good question Manoj - there is an ongoing academic debate about definitions of the two, and how they are interconnected. My view would be very much in line with your understanding.

Business continuity looks at the resilience of the organisation to withstand adverse incidents and continue to operate as normally as possible come what may. In a disaster the BC plan is there to enable the company to switch servers, move to a hot site, bring in external resources to cover sudden depletion, and restructure operations to adjust as seemlessly as possible to the disruption.
Crisis management deals with the incident itself - the people affected and their needs, the media interest, communication both internally and with all stakeholders, sending people to an incident scene if off-site, having the necessary resources at hand (both human and material). A BC plan is not complete without addressing the CM element; conversely addressing CM alone is not enough, without ensuring the organisation can maintain its operation.
Interesting debate though.. would like to hear others' views.

I'm glad to see some discussion on this issue. As a psychotherapist and trauma counsellor, sometimes I see people following serious incidents who clearly weren't looked after by the companies they worked for. The way I view it, crisis management planning and business continuity planning must be two sides of the same coin. What makes the news headlines is invariably the human (tragic?) dimension of a story. If a company fails to look after its people in the aftermath of a serious incident, this has the potential to seriously damage that company's reputation and standing. Business continuity planning therefore cannot afford to minimise or neglect the importance of managing a crisis; particularly the human dimension. In my view, worrying about what the media will say is a waste of energy. If you are taking care of the people, the media will recognise that and the company has a shot at saving its reputation.

arjarosz has pretty much hit the nail on the head so to speak.

Crisis Management, in its simplest form deals with making the decisions and putting the BCP into action and "manage the crisis". They will in essence use the Business Continuity Plan (BCP) to ensure that there is a continuity of operations for the business. Crisis management should be a part of the BCP.

Business Continuity is as a whole focused on the entire business and its people and processes. Business continuity has many other components that fit into it such as disaster recovery, business impact analysis, etc. each component is important and they all come together to form the BCP.