TODAY’S OBJECTIVES <ul><li>Provide a practical, business-focused crisis management program </li></ul><ul><li>Identify wher...
What is Crisis?
WHAT IS A CRISIS? <ul><li>With the potential to significantly damage our </li></ul><ul><ul><li>people (employees, communit...
Different Interpretations <ul><ul><li>Major unpredictable  event  </li></ul></ul><ul><ul><ul><li>Potentially negative resu...
Crisis Management <ul><li>Recognition of the facts  that some things cannot be prevented,  </li></ul><ul><li>Preventive me...
Primary Objectives of CRM <ul><li>To protect human life </li></ul><ul><li>To prevent, protect or minimize personal injury ...
Fundamental Questions <ul><li>What is the crisis? </li></ul><ul><li>When did it begin? </li></ul><ul><li>Why has it occurr...
Crisis Management Qs <ul><li>What kinds of crises have you faced in the past as a (your post) of a department? </li></ul><...
Identification of Anticipated Crises Natural  Man-Made Environmental Domestic Economic Political
Identify the Business Threats <ul><li>Internal </li></ul><ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul><u...
A Crisis Begins <ul><li>From a tiny spark comes a great conflagration. </li></ul><ul><li>When there is no vision, the peop...
Eight Distinct Phrases or Characteristics of Crises <ul><li>Surprise </li></ul><ul><li>Inattention/Insufficient informatio...
Crisis Leader’s Responsibilities <ul><li>Preparedness </li></ul><ul><li>Mitigation </li></ul><ul><li>Response </li></ul><u...
Wheel of Misfortune Customer  Risks Personnel Risks Property Risks Product  Liability On-Premise Injury Fire Natural  Disa...
Application of Risk Management <ul><li>Action  Comments   Appropriate Use </li></ul><ul><li>Avoidance  </li></ul><ul><li>T...
Sample of Crisis Prevention Management Plan <ul><li>1. Business Commitment from CEO </li></ul><ul><li>2. CRMP acknowledgem...
Cont’d <ul><li>5. Crisis & risk assessment : Summary of potential disasters e.g. fire, bomb threat response, typhoon, floo...
Cont’d <ul><li>9. Secondary contacts and resources </li></ul><ul><li>10. Media relations (multiple copies of press contact...
Total Integration Management Organisation  Structures, Systems. Processes and Cultures Business Imperatives Loss  Preventi...
? ? Q & A Session
Thank You For Your Participation
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Institute of Crisis and Risk Management Ver 1

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Institute of Crisis and Risk Management Ver 1

  1. 1. TODAY’S OBJECTIVES <ul><li>Provide a practical, business-focused crisis management program </li></ul><ul><li>Identify where your site is at risk of a crisis </li></ul><ul><li>Introduce you to processes and resources for risk management </li></ul><ul><li>Understand the roles and responsibilities of the Crisis Management Team </li></ul><ul><li>Apply AIM, and Media Communication & Management pro-actively </li></ul><ul><li>Integrate the total crisis and risk management plan, training, quality audit, and business scorecard. </li></ul>
  2. 2. What is Crisis?
  3. 3. WHAT IS A CRISIS? <ul><li>With the potential to significantly damage our </li></ul><ul><ul><li>people (employees, community, environment), </li></ul></ul><ul><ul><li>assets (facilities, products, financial condition) </li></ul></ul><ul><ul><li>reputation </li></ul></ul><ul><li>May involve the element of surprise </li></ul><ul><li>Often lack sufficient information </li></ul><ul><li>Does not necessarily interrupt operations </li></ul><ul><li>Intense internal and / or external scrutiny. </li></ul><ul><li>An emergency situation </li></ul>
  4. 4. Different Interpretations <ul><ul><li>Major unpredictable event </li></ul></ul><ul><ul><ul><li>Potentially negative results. </li></ul></ul></ul><ul><ul><ul><li>Significantly damage an organisation and its employees, products, services, financial condition, and reputation. </li></ul></ul></ul><ul><ul><li>situation or occurrence of a serious nature </li></ul></ul><ul><ul><ul><li>Suddenly and unexpectedly and demand immediate action. </li></ul></ul></ul><ul><ul><ul><li>Involve the compression of time , </li></ul></ul></ul><ul><ul><ul><li>Stakes can be extremely high. </li></ul></ul></ul>
  5. 5. Crisis Management <ul><li>Recognition of the facts that some things cannot be prevented, </li></ul><ul><li>Preventive measures adopted may fail wholly or in part if it is not well-planned in advance. </li></ul><ul><li>Reduce the minimal impact/damages to the organisation </li></ul><ul><li>Help organisation recover the business operations as quick as possible. </li></ul><ul><li>Change risks & crises to business opportunities </li></ul>
  6. 6. Primary Objectives of CRM <ul><li>To protect human life </li></ul><ul><li>To prevent, protect or minimize personal injury </li></ul><ul><li>To prevent, protect and minimize the potential danger to physical assets, property, product, service, information, image and reputation </li></ul><ul><li>To detect the facts with accurate information </li></ul><ul><li>To restore normal operations/activities as quickly as possible. </li></ul><ul><li>To sustain competitive advantage in business </li></ul>
  7. 7. Fundamental Questions <ul><li>What is the crisis? </li></ul><ul><li>When did it begin? </li></ul><ul><li>Why has it occurred? </li></ul><ul><li>Who is affected? </li></ul><ul><li>Where is the most vulnerable areas? </li></ul><ul><li>How to manage it? </li></ul>5Ws 1H
  8. 8. Crisis Management Qs <ul><li>What kinds of crises have you faced in the past as a (your post) of a department? </li></ul><ul><li>What contributes to that? </li></ul><ul><li>What specifically impressed you? </li></ul><ul><li>How did you plan and assess the risk? </li></ul><ul><li>How did it work out for you and the corporation? </li></ul><ul><li>What was your other crises? </li></ul><ul><li>What other kinds of potential crises might you face? </li></ul><ul><li>How would essential operations be sustained?  </li></ul><ul><li>Which business functions would suffer most? </li></ul><ul><li>During what period would recovery be effected? </li></ul><ul><li>What is the potential cost of recovery and reconstruction? </li></ul>
  9. 9. Identification of Anticipated Crises Natural Man-Made Environmental Domestic Economic Political
  10. 10. Identify the Business Threats <ul><li>Internal </li></ul><ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul><ul><li>4. </li></ul><ul><li>5. </li></ul><ul><li>External </li></ul><ul><li>1. </li></ul><ul><li>2. </li></ul><ul><li>3. </li></ul><ul><li>4. </li></ul><ul><li>5. </li></ul>
  11. 11. A Crisis Begins <ul><li>From a tiny spark comes a great conflagration. </li></ul><ul><li>When there is no vision, the people perish. </li></ul><ul><li>Everything has been thought of before, but the problem is to think of it again. </li></ul>
  12. 12. Eight Distinct Phrases or Characteristics of Crises <ul><li>Surprise </li></ul><ul><li>Inattention/Insufficient information </li></ul><ul><li>Mismanagement approach on escalating flow of events </li></ul><ul><li>Loss of control </li></ul><ul><li>Intense scrutiny from outside </li></ul><ul><li>Mentality of collaboration“us” Vs “them” </li></ul><ul><li>Panic </li></ul><ul><li>Myopia </li></ul><ul><ul><li>(Silence leaves one the more vulnerable) </li></ul></ul>
  13. 13. Crisis Leader’s Responsibilities <ul><li>Preparedness </li></ul><ul><li>Mitigation </li></ul><ul><li>Response </li></ul><ul><li>Recovery </li></ul><ul><li>Business Leadership </li></ul>
  14. 14. Wheel of Misfortune Customer Risks Personnel Risks Property Risks Product Liability On-Premise Injury Fire Natural Disasters Burglary & Business Swindles Shoplifting Bankruptcy Competition From Former Employees Loss of Key Executives Employee Dishonesty Bad Debts
  15. 15. Application of Risk Management <ul><li>Action Comments Appropriate Use </li></ul><ul><li>Avoidance </li></ul><ul><li>Transfer </li></ul><ul><li> </li></ul><ul><li>Retention </li></ul><ul><li>Reduction </li></ul>
  16. 16. Sample of Crisis Prevention Management Plan <ul><li>1. Business Commitment from CEO </li></ul><ul><li>2. CRMP acknowledgement (tear-out-sheet) </li></ul><ul><li>3. Crisis team leaders (with all phone numbers) </li></ul><ul><li>4. Crisis team contact sheet, including internal and external consultants </li></ul>
  17. 17. Cont’d <ul><li>5. Crisis & risk assessment : Summary of potential disasters e.g. fire, bomb threat response, typhoon, flooding, chemical spills. </li></ul><ul><li>6. Documentation section (multiple copies of crisis contact sheet) </li></ul><ul><li>7. Proprietary information (classified document) </li></ul><ul><li>8. Action procedures: </li></ul><ul><ul><li>Who to do? </li></ul></ul><ul><ul><li>What to do? </li></ul></ul><ul><ul><li>When? </li></ul></ul><ul><ul><li>Where? </li></ul></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><li>How? </li></ul></ul>
  18. 18. Cont’d <ul><li>9. Secondary contacts and resources </li></ul><ul><li>10. Media relations (multiple copies of press contact sheet) </li></ul><ul><li>11. Financial and legal considerations </li></ul><ul><li>12. Crisis centre: location, map of resources, and supplies </li></ul><ul><li>13. Post-crisis evaluation </li></ul><ul><li>14. Quality Audit </li></ul><ul><li>15. Business Scorecard </li></ul>
  19. 19. Total Integration Management Organisation Structures, Systems. Processes and Cultures Business Imperatives Loss Prevention Officers Quality Audits Surveys Awareness Programs Physical Systems Investigations
  20. 20. ? ? Q & A Session
  21. 21. Thank You For Your Participation
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