Institute of Crisis and Risk Management Ver 1 Fred Lee

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?

Institute of Crisis and Risk Management Ver 1 Fred Lee

WHAT IS A CRISIS?

With the potential to significantly damage ourpeople (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 natureSuddenly 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

SurpriseInattention/Insufficient informationMismanagement approach on escalating flow of eventsLoss of controlIntense scrutiny from outsideMentality of collaboration“us” Vs “them”PanicMyopia

– (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

Customer Risks

PersonnelRisks

PropertyRisks

Product Liability

On-PremiseInjury

FireNatural Disasters

Burglary &BusinessSwindles

Shoplifting

Bankruptcy

Competition From FormerEmployees

Loss of Key Executives

EmployeeDishonesty

BadDebts

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’d5. 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 resources10. Media relations (multiple copies of press contact sheet)11. Financial and legal considerations12. Crisis centre: location, map of resources, and supplies13. Post-crisis evaluation14. Quality Audit15. Business Scorecard

Institute of Crisis and Risk Management Ver 1 Fred Lee

Total Integration Management

Loss Prevention

Officers

QualityAudits

SurveysAwarenessPrograms

PhysicalSystems

Investigations

Organisation Structures, Systems. Processes and

Cultures

Business Imperatives

Institute of Crisis and Risk Management Ver 1 Fred Lee

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Q & A Session

Institute of Crisis and Risk Management Ver 1 Fred Lee

Thank YouFor Your

Participation