Crisis Management in Organizations Session 1 Agenda Overview syllabus, course structure, & requirements Course resources Team formation Types of crises Risk audit

What is a crisis? How would you know your organization is in a crisis?

Scope Severity Duration How would you sequence the following : Low High crisis risk disaster catastrophe problem emergency …and give example of each

* Strengths, Weaknesses, Opportunities, Threats The SWOT diagram often used in strategic planning can be used to identify crisis vulnerabilities SWOT* (or TOWS) Analysis Strengths Weaknesses Use strengths to take advantage of opportunities Overcome weaknesses by taking advantage of opportunities Opportunities Use strengths to avoid or minimize threats Risk assessment Identify vulnerabilities Protect weaknesses Threats * Strengths, Weaknesses, Opportunities, Threats

Risk can be defined in many different ways

Risk Assessment To what kinds of crises (industry & organizational) is your organization most vulnerable? What is the likelihood of their occurrence? What would the degree of impact be?

Hazard Severity 1 2 3 4 5 Hazard Likelihood 1 2 3 4 5 6

Risk Categorization Hazard Likelihood Hazard Severity You can also categorize types of risks in terms of their impact and probability Low Impact High Impact Low Probability High Probability Amber Zone Red Zone I I I I I I I I I I I I I I I I I I I I I I I I Hazard Likelihood Green Zone Gray Zone Hazard Severity

Example of a hazard or impact matrix for airline disasters Note reversed direction of dimensions)

Your team’s task: Briefly discuss range of work settings/industries in your team and select one for risk assessment Brainstorm a variety of crises for the industry Discuss the definitions for likelihood and impact, then rate your identified risks Locate on Risk Grid

Following are samples of planning & ways of representing approaches Risk analysis: Washington State Ferry System Strategic Landscape map: National Institute for Resources and the Environment Building vulnerability assessment Microsoft’s Grand strategy for risk analysis Federal Security Risk management Matrix

Risk analysis for Washington State Ferry System Prioritized risk reduction and safety system for staff and passengers The Washington State Ferry System is the largest passenger ferry system in the US. For a detailed copy of the plan go to: http://www.people.vcu.edu/~jrmerric/Papers/TIEMS99WSF.pdf

Sample risk analysis for the Washington State Ferry System

A vulnerability assessment of potential explosive analysis A vulnerability assessment of potential explosive analysis. Left figure shows window glazing hazard in existing building; right shows hazard in upgraded facility

Microsoft’s Grand Strategy for Risk Analysis

Systems mapping of crisis spinoffs

Draw a systems map of the spinoffs from your identified crisis

Discussion How feasible would it be to conduct a risk assessment with your organization? What would work and against such an audit? Where would you get information to help establish estimates for likelihood and severity? How helpful would this information be? If you had a systems map of a crisis, would it help you argue more effectively for a crisis plan?

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