SlideShare a Scribd company logo

Crisis Management Strategies When Disaster Strikes

•Download as PPTX, PDF•
•
The Windsdor Consulting Group, Inc.
The Windsdor Consulting Group, Inc.

If there was a man-made or natural disaster, how would your business respond? Do you have a contingency plan in place? What kind of financial and economic impact would a disaster have on your business? As you can see, there are many questions that need rock solid answers, regardless of the type of loss. Business contingency planning and emergency preparedness and readiness strategies plan an important role in determining if a business will survive and thrive in the face of adversity. Learn more about proper planning and execution. For more information contact the consultants at The Windsor Consulting Group, Inc. We have seen or been through many emergency situations with our customers. Let us show you how to be ready when disaster strikes.

Leadership & Management
1 of 32
Panelists: Dave Arick, ARM Assistant Treasurer, Global Risk Management - International Paper Company David Smith Vice President - Risk Management – Family Dollar Stores Robert Peterson, ARM, ALCM Executive Vice President, National Client Development - Sedgwick Session CLM204 Tuesday, April 17, 2012 2:15 p.m. - 3:30 p.m. Welcome to RIMS 2012 Annual Conference & Exhibition
Crisis Management Strategies Sedgwick Bob Peterson Executive Vice President, National Client Development Sedgwick
Despite best efforts, large losses are certainties throughout a risk professional’s career. A well-written, well-executed crisis management plan can mean the difference between an organization’s survival and demise. Exposures must be addressed in preplanning discussions along with post crisis strategies that include corporate communications and media relations as part of recovery to protect the intangible assets of brand and reputation. Learn the key elements of a crisis management plan, steps to effective execution and how to maintain and restore confidence in your business in the aftermath. Introduction and Overview
What is Crisis Management? Also referred to as…. Crisis: Any situation that is threatening or could threaten to harm people or property, seriously interrupt business, damage reputation and/or negatively impact share value. Disaster recovery Business continuity planning
Top 10 Crises of 2011 Tepco Natural disaster Netflix Change in business model Dow Chemical Olympic sponsorship ECB Eurozone crisis News Corp Phone hacking scandal Penn State Misconduct allegations Blackberry Major outage Sony Data breach HP Change in board members Qantas Labor dispute http://www.holmesreport.com
Cost of a Crisis Example - Data Breach 0 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 2011 Frequency $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2005 2006 2007 2008 2009 2010 Severity Reported number of data breaches involving personal data Business Insurance, March, 19, 2012 Average organizational cost of a data breach involving personal data in millions
Business Continuity Measures 37% 33% 42% 39% 30% 41% 46% 37% 42% 64% 0% 10% 20% 30% 40% 50% 60% 70% Reponded to the recent increase in natural disaster by rethinking business-continuity strategies Discussed business-resilience issues with supply chain partners Developed an integrated business-resilience strategy Developed a communications or training program to enhance its business-continuity or business-resilience strategies Created a business-continuity plan Have adopted in the last 3 years Plan to adopt in the next 3 years Top business-continuity measures being adopted by large companies. Source: June 2011 international survey of 391 senior executives by the Economist Intelligence Unit on behalf of IBM. The survey covered all industries; 48% of the respondents worked in companies of more than $1 billion in revenue.
Summary Predictable and quantifiable events Unexpected and unwelcome events Plan for Minimize the impact Resume normal operations Ultimate goal
Questions to Ask What are the worst things that can happen to my organization? What can we prevent? What are we willing to do to prevent the event/incident? Can we afford the risk? How will we deal with it? What is the reporting and communication process during the crisis?
Common Mistakes Inadequate planning Failure to bring the business into the planning and testing of your recovery efforts Failure to gain support from senior-level managers
3 Keys to Crisis Communications Honesty Let everyone on your team know that your integrity is the most valuable commodity you have in a crisis and it must not be compromised. Speed The dynamics of a crisis can change based on external events. Once identified, empower your team to make the tactical decisions required to communicate events as they unfold. Images People believe what they see over what they hear. You can have great talking points and a great spokesperson destroyed because the words are out of sync with the images coming from the scene. http://signalbridge.blogspot.com/2011/07/3-keys-to-crisis-comms-in-digital-age.html
Crisis Management Strategies International Paper Dave Arick, ARM Assistant Treasurer, Global Risk Management International Paper Company
• Global leader in paper and packaging • $30 billion in 2011 sales • 70,000 employees in 24+ countries • Manufacturing locations (excludes JVs) – 39 pulp, paper and packaging mills – 300+ converting, packaging and recycling plants – 200+ distribution branches Includes Temple-Inland, acquired February 2012
Manmade incidents, like fires & explosions Natural disasters, like hurricanes Crises Come in Many Varieties
A Historical View of Crisis Management Efforts FM Global recommendations (flood, hurricane, fire brigades, emergency response, etc.) Telephone hotline to corporate staff personnel Facility-based Risk management Environment, health & safety Uneven corporate involvement, awareness Information technology
Developing Management Support Executive offices relocating to Memphis Concerns raised post-Katrina: what if Memphis has “the BIG ONE” (i.e., a major earthquake)? What preparations have been made? What is needed? How is capital allocated for this? Eventual outcome: BCP department December 2005 Meeting
Crisis Management Timeline General Management of the Organization The Crisis Management Process AfterCrisis/EventPre-Event Risk management • Risk assessment • Loss prevention • Mitigation planning •Developing responsive, comprehensive insurance program • Communicating risk issues • Business continuity plans • Developing plans • Testing plans • Revising/updating plans • Training personnel Incident management Incident response Communications Insurance recovery Activating and executing plans • Mitigation • Business resumption • Business recovery
Company Resources/Functions Information Technology Security Legal Environment, Health & Safety Operations Finance & Accounting TEAM HR/Communications (incl. public affairs)
Risk Management’s Role in Crisis Management Focus on driving loss prevention, facility response plans, and risk-based decisions Complement BCP department efforts • Insurer and broker resources • Regular discussions and “moral support” Ensure that company insurance programs evolve as IP’s understanding of possible scenarios evolves - understand coverage if/when it’s needed!
Some Closing Thoughts support guidance on-going • Senior management support is critical • Plenty of external guidance if no in- house expert • The work isn’t done when the plans are! • Regular exercises to test plans and current thinking, with plans updated as new learnings surface • “Sustain mode” - must keep plans updated as the company evolves, and teams must stay active/current
Crisis Management Strategies Family Dollar stores David Smith Vice President, Risk Management Family Dollar Stores
Charlotte, NC based Family Dollar stores offer quality merchandise at everyday low prices, in easy to shop neighborhood locations. • 53 years in business • A Fortune® 300 company • 7,200 stores • “Small Box” • 2 to 4 team members staff the stores • Growth: 1 new store every 25 hours • More than 850 million customers per year • 11 distribution centers • 45 states • 50,000 Team Members • Annual sales in excess of $8.5 billion
The Awakening...... “…… for those of us who lived through these events, the only marker we’ll ever need is the tick of a clock at the 46th minute of the eighth hour of the 11th day” President George W. Bush
Family Dollar’s Approach Since 9-11-01 The “Windstorm” Phases:  Pre - Katrina  Ike (Katrina to Irene)  Irene & Forward People Centric Communications Cross Functional/Global Evolutionary Experience Based Risk Management Enterprise Risk Management Infiltration Initially IT Centric Reactionary Natural Disaster Sr. Management ? Store Operations
Post 9-11 to Katrina • IT Back Up Data Centers – Internal – Outsourced – IT Business Continuity Plan • Statistically 2.5 Stores Impaired each Month – Response Plan (Reactive) • TRIA
Katrina to Irene (Ike) • Interdepartmental • Multi-disciplined • Proactive/Loss Avoidance • Proactive Reactivity • People Centric • Safety • Compassionate/supportive • Communications Business continuity plan in place and practiced
Communications is Critical Communications Risk Management Operations Decision Leaders Internal Business Unit Experts Community Response Vendor Partners
Irene & Forward
Communications Pre-Event • Regular internal meetings • Monitoring • Warning protocols • Direction • Staging – Equipment – Personnel • Safety • Insurance carrier • TPA • Corporate communications Hurricane Irene – Stores Strike Zone Mapping
Communications – Post Event Damage Assessment Deployment • Equipment • Personnel • Supplies Safety Crisis Counseling Communications Team member support
Success Drives Credibility • People • Global • Trade disruption • Financial • Cyber • Information technology ERM – Natural Disasters & Beyond West Liberty, KY, March, 2012
Questions? Session CLM204 Tuesday, April 17, 2012 2:15 p.m. - 3:30 p.m. Welcome to RIMS 2012 Annual Conference & Exhibition

Recommended

Crisis Management Powerpoint Presentation Slides
Crisis Management Powerpoint Presentation SlidesCrisis Management Powerpoint Presentation Slides
Crisis Management Powerpoint Presentation SlidesSlideTeam
 
Chapter 2 (crisis management)
Chapter 2 (crisis management)Chapter 2 (crisis management)
Chapter 2 (crisis management)Abdul Jawad Chaudhry
 
Crisis management
Crisis managementCrisis management
Crisis managementMeraPPT. com
 
Crisis And Risk
Crisis And RiskCrisis And Risk
Crisis And Riskkktv
 
Crisis management
Crisis managementCrisis management
Crisis managementAtindya K Ghosh
 
Crisis Management
Crisis ManagementCrisis Management
Crisis ManagementArshaful Hoque
 
Crisis management
Crisis management Crisis management
Crisis management Brijesh Yadav
 
Crisis management
Crisis managementCrisis management
Crisis managementBusiness Management
 

Recommended

Crisis Management Powerpoint Presentation Slides
Crisis Management Powerpoint Presentation SlidesCrisis Management Powerpoint Presentation Slides
Crisis Management Powerpoint Presentation SlidesSlideTeam
 
Chapter 2 (crisis management)
Chapter 2 (crisis management)Chapter 2 (crisis management)
Chapter 2 (crisis management)Abdul Jawad Chaudhry
 
Crisis management
Crisis managementCrisis management
Crisis managementMeraPPT. com
 
Crisis And Risk
Crisis And RiskCrisis And Risk
Crisis And Riskkktv
 
Crisis management
Crisis managementCrisis management
Crisis managementAtindya K Ghosh
 
Crisis Management
Crisis ManagementCrisis Management
Crisis ManagementArshaful Hoque
 
Crisis management
Crisis management Crisis management
Crisis management Brijesh Yadav
 
Crisis management
Crisis managementCrisis management
Crisis managementBusiness Management
 
Crisis management
Crisis managementCrisis management
Crisis managementNishit Agarwal
 
Crisis management
Crisis managementCrisis management
Crisis managementRizwan Qamar
 
Crisis management plan presentation
Crisis management plan presentationCrisis management plan presentation
Crisis management plan presentationSandra Eblevi
 
Crisis Management
Crisis ManagementCrisis Management
Crisis Managementeuweben01
 
Crisis management presentation
Crisis management presentationCrisis management presentation
Crisis management presentationiChange
 
Business Continuity Planning
Business Continuity PlanningBusiness Continuity Planning
Business Continuity PlanningBharath Rao
 
Crisis Management Training by Iowa State University
Crisis Management Training by Iowa State UniversityCrisis Management Training by Iowa State University
Crisis Management Training by Iowa State UniversityAtlantic Training, LLC.
 
Crisis Management
Crisis ManagementCrisis Management
Crisis ManagementImpulsive Maya
 
Crisis communication
Crisis communicationCrisis communication
Crisis communicationDr.Arivalan Ramaiyah
 
The secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity PlanThe secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity PlanPECB
 
7 critical steps to crisis management
7 critical steps to crisis management7 critical steps to crisis management
7 critical steps to crisis managementPublic Federal Company
 
Crisis management final
Crisis management finalCrisis management final
Crisis management finalGeeg geeh
 
Crisis management
Crisis managementCrisis management
Crisis managementCem Tozar
 
Crisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNINCrisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNINTaha ABULAYNIN
 
Understanding crisis management
Understanding crisis managementUnderstanding crisis management
Understanding crisis managementAnishaDahiya
 
Assess Your Business Continuity Management Process
Assess Your Business Continuity Management ProcessAssess Your Business Continuity Management Process
Assess Your Business Continuity Management ProcessAnand Subramaniam
 
Best Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMCBest Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMCJanet Saunders
 
Business Continuity - Business Risk & Management
Business Continuity - Business Risk & ManagementBusiness Continuity - Business Risk & Management
Business Continuity - Business Risk & ManagementAndrew Styles
 
Business Continuity Management
Business Continuity ManagementBusiness Continuity Management
Business Continuity ManagementDiane Christina
 
Business Continuity Planning Presentation
Business Continuity Planning PresentationBusiness Continuity Planning Presentation
Business Continuity Planning PresentationThe Chamber For a Greater Chapel Hill-Carrboro
 
Crisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMSCrisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMSAtlantic Training, LLC.
 
The Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster RecoveryThe Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster Recoverycadavis22
 

More Related Content

What's hot

Crisis management plan presentation
Crisis management plan presentationCrisis management plan presentation
Crisis management plan presentationSandra Eblevi
 
Crisis Management
Crisis ManagementCrisis Management
Crisis Managementeuweben01
 
Crisis management presentation
Crisis management presentationCrisis management presentation
Crisis management presentationiChange
 
Business Continuity Planning
Business Continuity PlanningBusiness Continuity Planning
Business Continuity PlanningBharath Rao
 
Crisis Management Training by Iowa State University
Crisis Management Training by Iowa State UniversityCrisis Management Training by Iowa State University
Crisis Management Training by Iowa State UniversityAtlantic Training, LLC.
 
The secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity PlanThe secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity PlanPECB
 
Crisis management final
Crisis management finalCrisis management final
Crisis management finalGeeg geeh
 
Crisis management
Crisis managementCrisis management
Crisis managementCem Tozar
 
Crisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNINCrisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNINTaha ABULAYNIN
 
Understanding crisis management
Understanding crisis managementUnderstanding crisis management
Understanding crisis managementAnishaDahiya
 
Assess Your Business Continuity Management Process
Assess Your Business Continuity Management ProcessAssess Your Business Continuity Management Process
Assess Your Business Continuity Management ProcessAnand Subramaniam
 
Best Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMCBest Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMCJanet Saunders
 
Business Continuity - Business Risk & Management
Business Continuity - Business Risk & ManagementBusiness Continuity - Business Risk & Management
Business Continuity - Business Risk & ManagementAndrew Styles
 
Business Continuity Management
Business Continuity ManagementBusiness Continuity Management
Business Continuity ManagementDiane Christina
 

What's hot (20)

Crisis management
Crisis managementCrisis management
Crisis management
 
Crisis management
Crisis managementCrisis management
Crisis management
 
Crisis management plan presentation
Crisis management plan presentationCrisis management plan presentation
Crisis management plan presentation
 
Crisis Management
Crisis ManagementCrisis Management
Crisis Management
 
Crisis management presentation
Crisis management presentationCrisis management presentation
Crisis management presentation
 
Business Continuity Planning
Business Continuity PlanningBusiness Continuity Planning
Business Continuity Planning
 
Crisis Management Training by Iowa State University
Crisis Management Training by Iowa State UniversityCrisis Management Training by Iowa State University
Crisis Management Training by Iowa State University
 
Crisis Management
Crisis ManagementCrisis Management
Crisis Management
 
Crisis communication
Crisis communicationCrisis communication
Crisis communication
 
The secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity PlanThe secret of a successful Crisis Management & Continuity Plan
The secret of a successful Crisis Management & Continuity Plan
 
7 critical steps to crisis management
7 critical steps to crisis management7 critical steps to crisis management
7 critical steps to crisis management
 
Crisis management final
Crisis management finalCrisis management final
Crisis management final
 
Crisis management
Crisis managementCrisis management
Crisis management
 
Crisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNINCrisis management for non crisis managers Taha ABULAYNIN
Crisis management for non crisis managers Taha ABULAYNIN
 
Understanding crisis management
Understanding crisis managementUnderstanding crisis management
Understanding crisis management
 
Assess Your Business Continuity Management Process
Assess Your Business Continuity Management ProcessAssess Your Business Continuity Management Process
Assess Your Business Continuity Management Process
 
Best Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMCBest Practice Crisis And Issues Management A Recommended Approach By SMC
Best Practice Crisis And Issues Management A Recommended Approach By SMC
 
Business Continuity - Business Risk & Management
Business Continuity - Business Risk & ManagementBusiness Continuity - Business Risk & Management
Business Continuity - Business Risk & Management
 
Business Continuity Management
Business Continuity ManagementBusiness Continuity Management
Business Continuity Management
 
Business Continuity Planning Presentation
Business Continuity Planning PresentationBusiness Continuity Planning Presentation
Business Continuity Planning Presentation
 

Similar to Crisis Management Strategies When Disaster Strikes

Crisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMSCrisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMSAtlantic Training, LLC.
 
The Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster RecoveryThe Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster Recoverycadavis22
 
Crisis Management in Organization Development by The College of Saint Scholas...
Crisis Management in Organization Development by The College of Saint Scholas...Crisis Management in Organization Development by The College of Saint Scholas...
Crisis Management in Organization Development by The College of Saint Scholas...Atlantic Training, LLC.
 
Module 19 - Crisis Communications.pptx
Module 19 - Crisis Communications.pptxModule 19 - Crisis Communications.pptx
Module 19 - Crisis Communications.pptxcaniceconsulting
 
Business Continuity as a Career
Business Continuity as a CareerBusiness Continuity as a Career
Business Continuity as a CareerBonnie Canal
 
Public relations management
Public relations managementPublic relations management
Public relations managementGloriaGlory2
 
actsens - Introduction
actsens - Introductionactsens - Introduction
actsens - Introductionpayrow
 
MS&L Issues & Crisis
MS&L Issues & CrisisMS&L Issues & Crisis
MS&L Issues & Crisisguest9720f8
 
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...4Good.org
 
Crisis & Risk Management for Companies Training by University of Alexandria
Crisis & Risk Management for Companies Training by University of AlexandriaCrisis & Risk Management for Companies Training by University of Alexandria
Crisis & Risk Management for Companies Training by University of AlexandriaAtlantic Training, LLC.
 
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)Devin DeCiantis
 
Why you should care about crisis (communications) @MassChallenge.CH
Why you should care about crisis (communications) @MassChallenge.CHWhy you should care about crisis (communications) @MassChallenge.CH
Why you should care about crisis (communications) @MassChallenge.CHINCITO communication
 
Leading risk culture change webinar
Leading risk culture change webinarLeading risk culture change webinar
Leading risk culture change webinarFERMA
 
Crisis Action Planning for Diversity Practitioners
Crisis Action Planning for Diversity PractitionersCrisis Action Planning for Diversity Practitioners
Crisis Action Planning for Diversity PractitionersNereida (Neddy) Perez
 

Similar to Crisis Management Strategies When Disaster Strikes (20)

Crisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMSCrisis Management Training Strategies by RIMS
Crisis Management Training Strategies by RIMS
 
The Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster RecoveryThe Revere Group - Making A Case For Disaster Recovery
The Revere Group - Making A Case For Disaster Recovery
 
Crisis Management in Organization Development by The College of Saint Scholas...
Crisis Management in Organization Development by The College of Saint Scholas...Crisis Management in Organization Development by The College of Saint Scholas...
Crisis Management in Organization Development by The College of Saint Scholas...
 
Risk and Business Continuity Management
Risk and Business Continuity Management Risk and Business Continuity Management
Risk and Business Continuity Management
 
Module 19 - Crisis Communications.pptx
Module 19 - Crisis Communications.pptxModule 19 - Crisis Communications.pptx
Module 19 - Crisis Communications.pptx
 
Business Continuity as a Career
Business Continuity as a CareerBusiness Continuity as a Career
Business Continuity as a Career
 
Public relations management
Public relations managementPublic relations management
Public relations management
 
Crisis
CrisisCrisis
Crisis
 
actsens - Introduction
actsens - Introductionactsens - Introduction
actsens - Introduction
 
MS&L Issues & Crisis
MS&L Issues & CrisisMS&L Issues & Crisis
MS&L Issues & Crisis
 
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...
A Game Plan for Making Decisions Before, During, and After a Crisis Hits Your...
 
Crisis & Risk Management for Companies Training by University of Alexandria
Crisis & Risk Management for Companies Training by University of AlexandriaCrisis & Risk Management for Companies Training by University of Alexandria
Crisis & Risk Management for Companies Training by University of Alexandria
 
23871
2387123871
23871
 
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)
COVID-19 Crisis Management Toolkit for Family Business (Executive Summary)
 
Why you should care about crisis (communications) @MassChallenge.CH
Why you should care about crisis (communications) @MassChallenge.CHWhy you should care about crisis (communications) @MassChallenge.CH
Why you should care about crisis (communications) @MassChallenge.CH
 
Chris Gould - BCM case
Chris Gould - BCM caseChris Gould - BCM case
Chris Gould - BCM case
 
Leading risk culture change webinar
Leading risk culture change webinarLeading risk culture change webinar
Leading risk culture change webinar
 
How to Prepare for Crisis
How to Prepare for CrisisHow to Prepare for Crisis
How to Prepare for Crisis
 
Crisis Management Workshop Thailand 2012
Crisis Management Workshop Thailand 2012Crisis Management Workshop Thailand 2012
Crisis Management Workshop Thailand 2012
 
Crisis Action Planning for Diversity Practitioners
Crisis Action Planning for Diversity PractitionersCrisis Action Planning for Diversity Practitioners
Crisis Action Planning for Diversity Practitioners
 

More from The Windsdor Consulting Group, Inc.

Life in India’s Coal Mines - Exposure to Respirable Silica Dust
Life in India’s Coal Mines - Exposure to Respirable Silica DustLife in India’s Coal Mines - Exposure to Respirable Silica Dust
Life in India’s Coal Mines - Exposure to Respirable Silica DustThe Windsdor Consulting Group, Inc.
 
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...The Windsdor Consulting Group, Inc.
 
Future of Occupational and Environmental Health and Safety in Global Business
Future of Occupational and Environmental Health and Safety in Global BusinessFuture of Occupational and Environmental Health and Safety in Global Business
Future of Occupational and Environmental Health and Safety in Global BusinessThe Windsdor Consulting Group, Inc.
 
The Future of Work and the Re-Imagined Industrial Hygiene Profession
The Future of Work and the Re-Imagined Industrial Hygiene ProfessionThe Future of Work and the Re-Imagined Industrial Hygiene Profession
The Future of Work and the Re-Imagined Industrial Hygiene ProfessionThe Windsdor Consulting Group, Inc.
 

More from The Windsdor Consulting Group, Inc. (20)

Life in India’s Coal Mines - Exposure to Respirable Silica Dust
Life in India’s Coal Mines - Exposure to Respirable Silica DustLife in India’s Coal Mines - Exposure to Respirable Silica Dust
Life in India’s Coal Mines - Exposure to Respirable Silica Dust
 
Occupational Lung Disease in United Kingdom
Occupational Lung Disease in United KingdomOccupational Lung Disease in United Kingdom
Occupational Lung Disease in United Kingdom
 
Longitudinal Study of Silica Dust (1984 - 2013)
Longitudinal Study of Silica Dust (1984 - 2013)Longitudinal Study of Silica Dust (1984 - 2013)
Longitudinal Study of Silica Dust (1984 - 2013)
 
HSE Work-Related Stress and How to Manage It
HSE Work-Related Stress and How to Manage ItHSE Work-Related Stress and How to Manage It
HSE Work-Related Stress and How to Manage It
 
Alone and Exploited, Migrant Children Working Brutal Work Tasks
Alone and Exploited, Migrant Children Working Brutal Work TasksAlone and Exploited, Migrant Children Working Brutal Work Tasks
Alone and Exploited, Migrant Children Working Brutal Work Tasks
 
Hazardous Material Removal After Earthquake in Turkey
Hazardous Material Removal After Earthquake in TurkeyHazardous Material Removal After Earthquake in Turkey
Hazardous Material Removal After Earthquake in Turkey
 
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...
Respirable Crystalline Silica and Asbestos Exposures in Manmade and Natural D...
 
Living in Dusty Environmental World in China
Living in Dusty Environmental World in ChinaLiving in Dusty Environmental World in China
Living in Dusty Environmental World in China
 
Occupational illness and Disease in Bangladesh
Occupational illness and Disease in BangladeshOccupational illness and Disease in Bangladesh
Occupational illness and Disease in Bangladesh
 
The Future of Work and Reimaged IH Profession
The Future of Work and Reimaged IH ProfessionThe Future of Work and Reimaged IH Profession
The Future of Work and Reimaged IH Profession
 
Back to Work Safely and COVID-19 Pandemic
Back to Work Safely and COVID-19 PandemicBack to Work Safely and COVID-19 Pandemic
Back to Work Safely and COVID-19 Pandemic
 
IIRSM IIndustrial_Hygiene
IIRSM IIndustrial_HygieneIIRSM IIndustrial_Hygiene
IIRSM IIndustrial_Hygiene
 
Visual Literacy Related to OSH in the Workplace
Visual Literacy Related to OSH in the WorkplaceVisual Literacy Related to OSH in the Workplace
Visual Literacy Related to OSH in the Workplace
 
Microlearning A New Paradigm to Train
Microlearning A New Paradigm to TrainMicrolearning A New Paradigm to Train
Microlearning A New Paradigm to Train
 
Future of Occupational and Environmental Health and Safety in Global Business
Future of Occupational and Environmental Health and Safety in Global BusinessFuture of Occupational and Environmental Health and Safety in Global Business
Future of Occupational and Environmental Health and Safety in Global Business
 
Expanding the Boundaries of ISO 45001 into ISO 45003 and Beyond
Expanding the Boundaries of ISO 45001 into ISO 45003 and BeyondExpanding the Boundaries of ISO 45001 into ISO 45003 and Beyond
Expanding the Boundaries of ISO 45001 into ISO 45003 and Beyond
 
Heat Stress for Baseball Officials and Assignors
Heat Stress for Baseball Officials and AssignorsHeat Stress for Baseball Officials and Assignors
Heat Stress for Baseball Officials and Assignors
 
The Future of Work and the Re-Imagined Industrial Hygiene Profession
The Future of Work and the Re-Imagined Industrial Hygiene ProfessionThe Future of Work and the Re-Imagined Industrial Hygiene Profession
The Future of Work and the Re-Imagined Industrial Hygiene Profession
 
Life After Sars CoV-2 in the Construction Industry
Life After Sars CoV-2 in the Construction IndustryLife After Sars CoV-2 in the Construction Industry
Life After Sars CoV-2 in the Construction Industry
 
Occupational Health and Safety Cost Benefit analysis
Occupational Health and Safety Cost Benefit analysisOccupational Health and Safety Cost Benefit analysis
Occupational Health and Safety Cost Benefit analysis
 

Recently uploaded

Agile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptxAgile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptxalinstan901
 
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort ServiceBDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort ServiceDelhi Call girls
 
Continuous Improvement Infographics for Learning
Continuous Improvement Infographics for LearningContinuous Improvement Infographics for Learning
Continuous Improvement Infographics for LearningCIToolkit
 
Construction Project Management | Coursera 2024
Construction Project Management | Coursera 2024Construction Project Management | Coursera 2024
Construction Project Management | Coursera 2024Alex Marques
 
Day 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC BootcampDay 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC BootcampPLCLeadershipDevelop
 
situational leadership theory by Misba Fathima S
situational leadership theory by Misba Fathima Ssituational leadership theory by Misba Fathima S
situational leadership theory by Misba Fathima Smisbafathima9940
 
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...Pooja Nehwal
 
Reviewing and summarization of university ranking system to.pptx
Reviewing and summarization of university ranking system to.pptxReviewing and summarization of university ranking system to.pptx
Reviewing and summarization of university ranking system to.pptxAss.Prof. Dr. Mogeeb Mosleh
 
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...Pooja Nehwal
 

Recently uploaded (20)

Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTECAbortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
Abortion pills in Jeddah |• +966572737505 ] GET CYTOTEC
 
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdfImagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
Imagine - HR; are handling the 'bad banter' - Stella Chandler.pdf
 
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote SpeakerLeadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
Leadership in Crisis - Helio Vogas, Risk & Leadership Keynote Speaker
 
Agile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptxAgile Coaching Change Management Framework.pptx
Agile Coaching Change Management Framework.pptx
 
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort ServiceBDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort Service
BDSM⚡Call Girls in Sector 99 Noida Escorts >༒8448380779 Escort Service
 
Empowering Local Government Frontline Services - Mo Baines.pdf
Empowering Local Government Frontline Services - Mo Baines.pdfEmpowering Local Government Frontline Services - Mo Baines.pdf
Empowering Local Government Frontline Services - Mo Baines.pdf
 
Continuous Improvement Infographics for Learning
Continuous Improvement Infographics for LearningContinuous Improvement Infographics for Learning
Continuous Improvement Infographics for Learning
 
Construction Project Management | Coursera 2024
Construction Project Management | Coursera 2024Construction Project Management | Coursera 2024
Construction Project Management | Coursera 2024
 
Day 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC BootcampDay 0- Bootcamp Roadmap for PLC Bootcamp
Day 0- Bootcamp Roadmap for PLC Bootcamp
 
Intro_University_Ranking_Introduction.pptx
Intro_University_Ranking_Introduction.pptxIntro_University_Ranking_Introduction.pptx
Intro_University_Ranking_Introduction.pptx
 
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg PartnershipUnlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
Unlocking the Future - Dr Max Blumberg, Founder of Blumberg Partnership
 
situational leadership theory by Misba Fathima S
situational leadership theory by Misba Fathima Ssituational leadership theory by Misba Fathima S
situational leadership theory by Misba Fathima S
 
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...
Call Now Pooja Mehta : 7738631006 Door Step Call Girls Rate 100% Satisfactio...
 
Reviewing and summarization of university ranking system to.pptx
Reviewing and summarization of university ranking system to.pptxReviewing and summarization of university ranking system to.pptx
Reviewing and summarization of university ranking system to.pptx
 
Peak Performance & Resilience - Dr Dorian Dugmore
Peak Performance & Resilience - Dr Dorian DugmorePeak Performance & Resilience - Dr Dorian Dugmore
Peak Performance & Resilience - Dr Dorian Dugmore
 
Disrupt or be Disrupted - Kirk Vallis.pdf
Disrupt or be Disrupted - Kirk Vallis.pdfDisrupt or be Disrupted - Kirk Vallis.pdf
Disrupt or be Disrupted - Kirk Vallis.pdf
 
LoveLocalGov - Chris Twigg, Inner Circle
LoveLocalGov - Chris Twigg, Inner CircleLoveLocalGov - Chris Twigg, Inner Circle
LoveLocalGov - Chris Twigg, Inner Circle
 
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
Call now : 9892124323 Nalasopara Beautiful Call Girls Vasai virar Best Call G...
 
Becoming an Inclusive Leader - Bernadette Thompson
Becoming an Inclusive Leader - Bernadette ThompsonBecoming an Inclusive Leader - Bernadette Thompson
Becoming an Inclusive Leader - Bernadette Thompson
 
Discover -CQ Master Class - Rikita Wadhwa.pdf
Discover -CQ Master Class - Rikita Wadhwa.pdfDiscover -CQ Master Class - Rikita Wadhwa.pdf
Discover -CQ Master Class - Rikita Wadhwa.pdf
 

Crisis Management Strategies When Disaster Strikes

  • 1. Panelists: Dave Arick, ARM Assistant Treasurer, Global Risk Management - International Paper Company David Smith Vice President - Risk Management – Family Dollar Stores Robert Peterson, ARM, ALCM Executive Vice President, National Client Development - Sedgwick Session CLM204 Tuesday, April 17, 2012 2:15 p.m. - 3:30 p.m. Welcome to RIMS 2012 Annual Conference & Exhibition
  • 2. Crisis Management Strategies Sedgwick Bob Peterson Executive Vice President, National Client Development Sedgwick
  • 3. Despite best efforts, large losses are certainties throughout a risk professional’s career. A well-written, well-executed crisis management plan can mean the difference between an organization’s survival and demise. Exposures must be addressed in preplanning discussions along with post crisis strategies that include corporate communications and media relations as part of recovery to protect the intangible assets of brand and reputation. Learn the key elements of a crisis management plan, steps to effective execution and how to maintain and restore confidence in your business in the aftermath. Introduction and Overview
  • 4. What is Crisis Management? Also referred to as…. Crisis: Any situation that is threatening or could threaten to harm people or property, seriously interrupt business, damage reputation and/or negatively impact share value. Disaster recovery Business continuity planning
  • 5. Top 10 Crises of 2011 Tepco Natural disaster Netflix Change in business model Dow Chemical Olympic sponsorship ECB Eurozone crisis News Corp Phone hacking scandal Penn State Misconduct allegations Blackberry Major outage Sony Data breach HP Change in board members Qantas Labor dispute http://www.holmesreport.com
  • 6. Cost of a Crisis Example - Data Breach 0 100 200 300 400 500 600 700 2005 2006 2007 2008 2009 2010 2011 Frequency $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 2005 2006 2007 2008 2009 2010 Severity Reported number of data breaches involving personal data Business Insurance, March, 19, 2012 Average organizational cost of a data breach involving personal data in millions
  • 7. Business Continuity Measures 37% 33% 42% 39% 30% 41% 46% 37% 42% 64% 0% 10% 20% 30% 40% 50% 60% 70% Reponded to the recent increase in natural disaster by rethinking business-continuity strategies Discussed business-resilience issues with supply chain partners Developed an integrated business-resilience strategy Developed a communications or training program to enhance its business-continuity or business-resilience strategies Created a business-continuity plan Have adopted in the last 3 years Plan to adopt in the next 3 years Top business-continuity measures being adopted by large companies. Source: June 2011 international survey of 391 senior executives by the Economist Intelligence Unit on behalf of IBM. The survey covered all industries; 48% of the respondents worked in companies of more than $1 billion in revenue.
  • 8. Summary Predictable and quantifiable events Unexpected and unwelcome events Plan for Minimize the impact Resume normal operations Ultimate goal
  • 9. Questions to Ask What are the worst things that can happen to my organization? What can we prevent? What are we willing to do to prevent the event/incident? Can we afford the risk? How will we deal with it? What is the reporting and communication process during the crisis?
  • 10. Common Mistakes Inadequate planning Failure to bring the business into the planning and testing of your recovery efforts Failure to gain support from senior-level managers
  • 11. 3 Keys to Crisis Communications Honesty Let everyone on your team know that your integrity is the most valuable commodity you have in a crisis and it must not be compromised. Speed The dynamics of a crisis can change based on external events. Once identified, empower your team to make the tactical decisions required to communicate events as they unfold. Images People believe what they see over what they hear. You can have great talking points and a great spokesperson destroyed because the words are out of sync with the images coming from the scene. http://signalbridge.blogspot.com/2011/07/3-keys-to-crisis-comms-in-digital-age.html
  • 12. Crisis Management Strategies International Paper Dave Arick, ARM Assistant Treasurer, Global Risk Management International Paper Company
  • 13. • Global leader in paper and packaging • $30 billion in 2011 sales • 70,000 employees in 24+ countries • Manufacturing locations (excludes JVs) – 39 pulp, paper and packaging mills – 300+ converting, packaging and recycling plants – 200+ distribution branches Includes Temple-Inland, acquired February 2012
  • 14. Manmade incidents, like fires & explosions Natural disasters, like hurricanes Crises Come in Many Varieties
  • 15. A Historical View of Crisis Management Efforts FM Global recommendations (flood, hurricane, fire brigades, emergency response, etc.) Telephone hotline to corporate staff personnel Facility-based Risk management Environment, health & safety Uneven corporate involvement, awareness Information technology
  • 16. Developing Management Support Executive offices relocating to Memphis Concerns raised post-Katrina: what if Memphis has “the BIG ONE” (i.e., a major earthquake)? What preparations have been made? What is needed? How is capital allocated for this? Eventual outcome: BCP department December 2005 Meeting
  • 17. Crisis Management Timeline General Management of the Organization The Crisis Management Process AfterCrisis/EventPre-Event Risk management • Risk assessment • Loss prevention • Mitigation planning •Developing responsive, comprehensive insurance program • Communicating risk issues • Business continuity plans • Developing plans • Testing plans • Revising/updating plans • Training personnel Incident management Incident response Communications Insurance recovery Activating and executing plans • Mitigation • Business resumption • Business recovery
  • 19. Risk Management’s Role in Crisis Management Focus on driving loss prevention, facility response plans, and risk-based decisions Complement BCP department efforts • Insurer and broker resources • Regular discussions and “moral support” Ensure that company insurance programs evolve as IP’s understanding of possible scenarios evolves - understand coverage if/when it’s needed!
  • 20. Some Closing Thoughts support guidance on-going • Senior management support is critical • Plenty of external guidance if no in- house expert • The work isn’t done when the plans are! • Regular exercises to test plans and current thinking, with plans updated as new learnings surface • “Sustain mode” - must keep plans updated as the company evolves, and teams must stay active/current
  • 21. Crisis Management Strategies Family Dollar stores David Smith Vice President, Risk Management Family Dollar Stores
  • 22. Charlotte, NC based Family Dollar stores offer quality merchandise at everyday low prices, in easy to shop neighborhood locations. • 53 years in business • A Fortune® 300 company • 7,200 stores • “Small Box” • 2 to 4 team members staff the stores • Growth: 1 new store every 25 hours • More than 850 million customers per year • 11 distribution centers • 45 states • 50,000 Team Members • Annual sales in excess of $8.5 billion
  • 23. The Awakening...... “…… for those of us who lived through these events, the only marker we’ll ever need is the tick of a clock at the 46th minute of the eighth hour of the 11th day” President George W. Bush
  • 24. Family Dollar’s Approach Since 9-11-01 The “Windstorm” Phases:  Pre - Katrina  Ike (Katrina to Irene)  Irene & Forward People Centric Communications Cross Functional/Global Evolutionary Experience Based Risk Management Enterprise Risk Management Infiltration Initially IT Centric Reactionary Natural Disaster Sr. Management ? Store Operations
  • 25. Post 9-11 to Katrina • IT Back Up Data Centers – Internal – Outsourced – IT Business Continuity Plan • Statistically 2.5 Stores Impaired each Month – Response Plan (Reactive) • TRIA
  • 26. Katrina to Irene (Ike) • Interdepartmental • Multi-disciplined • Proactive/Loss Avoidance • Proactive Reactivity • People Centric • Safety • Compassionate/supportive • Communications Business continuity plan in place and practiced
  • 27. Communications is Critical Communications Risk Management Operations Decision Leaders Internal Business Unit Experts Community Response Vendor Partners
  • 29. Communications Pre-Event • Regular internal meetings • Monitoring • Warning protocols • Direction • Staging – Equipment – Personnel • Safety • Insurance carrier • TPA • Corporate communications Hurricane Irene – Stores Strike Zone Mapping
  • 30. Communications – Post Event Damage Assessment Deployment • Equipment • Personnel • Supplies Safety Crisis Counseling Communications Team member support
  • 31. Success Drives Credibility • People • Global • Trade disruption • Financial • Cyber • Information technology ERM – Natural Disasters & Beyond West Liberty, KY, March, 2012
  • 32. Questions? Session CLM204 Tuesday, April 17, 2012 2:15 p.m. - 3:30 p.m. Welcome to RIMS 2012 Annual Conference & Exhibition