TODAY’S OBJECTIVES Provide a practical, business-focused crisis management program Identify where your site is at risk of a crisis Introduce you to processes and resources for risk management Understand the roles and responsibilities of the Crisis Management Team Apply AIM, and Media Communication & Management pro-actively Integrate the total crisis and risk management plan, training, quality audit, and business scorecard. Institute of Crisis and Risk Management Ver 1 Fred Lee

What is Crisis?

WHAT IS A CRISIS? With the potential to significantly damage our people (employees, community, environment), assets (facilities, products, financial condition) reputation May involve the element of surprise Often lack sufficient information Does not necessarily interrupt operations Intense internal and / or external scrutiny. An emergency situation Institute of Crisis and Risk Management Ver 1 Fred Lee

Different Interpretations Major unpredictable event Potentially negative results. Significantly damage an organisation and its employees, products, services, financial condition, and reputation. situation or occurrence of a serious nature Suddenly and unexpectedly and demand immediate action. Involve the compression of time, Stakes can be extremely high. Institute of Crisis and Risk Management Ver 1 Fred Lee

Crisis Management Recognition of the facts that some things cannot be prevented, Preventive measures adopted may fail wholly or in part if it is not well-planned in advance. Reduce the minimal impact/damages to the organisation Help organisation recover the business operations as quick as possible. Change risks & crises to business opportunities Institute of Crisis and Risk Management Ver 1 Fred Lee

Primary Objectives of CRM To protect human life To prevent, protect or minimize personal injury To prevent, protect and minimize the potential danger to physical assets, property, product, service, information, image and reputation To detect the facts with accurate information To restore normal operations/activities as quickly as possible. To sustain competitive advantage in business Institute of Crisis and Risk Management Ver 1 Fred Lee

Fundamental Questions What is the crisis? When did it begin? Why has it occurred? Who is affected? Where is the most vulnerable areas? How to manage it? 5Ws 1H Institute of Crisis and Risk Management Ver 1 Fred Lee

Crisis Management Qs What kinds of crises have you faced in the past as a (your post) of a department? What contributes to that? What specifically impressed you? How did you plan and assess the risk? How did it work out for you and the corporation? What was your other crises? What other kinds of potential crises might you face? How would essential operations be sustained?  Which business functions would suffer most? During what period would recovery be effected? What is the potential cost of recovery and reconstruction? Institute of Crisis and Risk Management Ver 1 Fred Lee

Identification of Anticipated Crises Natural Man-Made Environmental Domestic Economic Political Institute of Crisis and Risk Management Ver 1 Fred Lee

Identify the Business Threats Internal 1. 2. 3. 4. 5. External 1. 2. 3. 4. 5. Institute of Crisis and Risk Management Ver 1 Fred Lee

A Crisis Begins From a tiny spark comes a great conflagration. When there is no vision, the people perish. Everything has been thought of before, but the problem is to think of it again. Institute of Crisis and Risk Management Ver 1 Fred Lee

Eight Distinct Phrases or Characteristics of Crises Surprise Inattention/Insufficient information Mismanagement approach on escalating flow of events Loss of control Intense scrutiny from outside Mentality of collaboration“us” Vs “them” Panic Myopia (Silence leaves one the more vulnerable) Institute of Crisis and Risk Management Ver 1 Fred Lee

Crisis Leader’s Responsibilities Preparedness Mitigation Response Recovery Business Leadership Institute of Crisis and Risk Management Ver 1 Fred Lee

Wheel of Misfortune Fire On-Premise Injury Natural Disasters Burglary & Business Swindles Product Liability Customer Risks Property Risks Bad Debts Shoplifting Personnel Risks Employee Dishonesty Bankruptcy Competition From Former Employees Loss of Key Executives Institute of Crisis and Risk Management Ver 1 Fred Lee

Application of Risk Management Action Comments Appropriate Use Avoidance Transfer Retention Reduction Institute of Crisis and Risk Management Ver 1 Fred Lee

Sample of Crisis Prevention Management Plan 1. Business Commitment from CEO 2. CRMP acknowledgement (tear-out-sheet) 3. Crisis team leaders (with all phone numbers) 4. Crisis team contact sheet, including internal and external consultants Institute of Crisis and Risk Management Ver 1 Fred Lee

Cont’d 5. Crisis & risk assessment : Summary of potential disasters e.g. fire, bomb threat response, typhoon, flooding, chemical spills. 6. Documentation section (multiple copies of crisis contact sheet) 7. Proprietary information (classified document) 8. Action procedures: Who to do? What to do? When? Where? Why? How? Institute of Crisis and Risk Management Ver 1 Fred Lee

Cont’d 9. Secondary contacts and resources 10. Media relations (multiple copies of press contact sheet) 11. Financial and legal considerations 12. Crisis centre: location, map of resources, and supplies 13. Post-crisis evaluation 14. Quality Audit 15. Business Scorecard Institute of Crisis and Risk Management Ver 1 Fred Lee

Total Integration Management Organisation Structures, Systems. Processes and Cultures Loss Prevention Officers Quality Audits Surveys Awareness Programs Physical Systems Investigations Business Imperatives Institute of Crisis and Risk Management Ver 1 Fred Lee

? ? Q & A Session Institute of Crisis and Risk Management Ver 1 Fred Lee

Thank You For Your Participation Institute of Crisis and Risk Management Ver 1 Fred Lee