Corporate Crises

Management

Presenter: G.Odbayar

Mining National Operator

2015-11-11

Structure

BOD

BGP

EMT

ERT

BTP

EMT

ERT

KSP

EMT

ERT

Steering Committee

UB

COMMUNICATION

CMT

HR

Dispatcher

Mine Ops HSE Procurement

Log keeper

On Scene Leader Capitan ERT

EMERGENCY RESPONSE

EMERGENCY

MANAGEMENT

CRISES

MANAGEMENT

Thresholds for CMT Situational

Guidance

Impact

on

People

Asset or

financial

impacts

Impact on

the

Environmen

t

Reputation

impacts or

public

concern

Notification

and

activation

required

Incident

Such as a

fire,

explosion,

equipment

malfunction,

security

incident

Minor

Injuries

Minor

<$50k

financial loss,

some damage

to property,

minimal

disruption to

services.

Issues of a

non-

continuous

nature and

minor impact

and

consequence

Isolated media

coverage. The

level of

reporting is

limited.

The ERT at

the site is

activated,

and the

Duty

Manager/E

MT Leader

is notified.

Emergency

a serious fire

or explosion,

bomb threat,

severe

weather or

seismic

activity

Major

Injuries

Major

$50-500k

financial loss,

some business

interruption,

Major

equipment

malfunction.

Issues of a

continuous

nature but

limited

impact and

Poses a threat

to residents in

the immediate

vicinity and/or

seriously

affects site

operations.

Potential for

media interest..

The EMT is

activated,

and the

CMT is

notified.

Action by

off-site

persons is

necessary.

Situational

Guidance

Impact on

People

Asset or

financial

impacts

Impact on

the

Environmen

t

Reputation

impacts or

public

concern

Notification

and

activation

required

Crisis

Such as a

major fire or

Explosion,

material

release,

severe

weather,

seismic

activity or

kidnap/hostag

e.

Permanent

disability or

fatalities

Extensive

>$500k

financial

loss, major

business

interruption.

Plant

catastrophe.

Issues of a

continuous

nature with

major long-

term impact

and

potentially

serious

consequence

s,

contaminatio

n of potable

water

source).

media

interest,

potential for

public

outrage,

potential for

loss of

regulatory

accreditation.

Likely to

affect areas

well beyond

site

boundaries

and/or site

operations.

The EMT and

CMT are

activated.

The situation

is not under

control.

Protective

actions by off-

site entities

are ongoing.

Thresholds for CMT

Crises Management Team

President

Gov. relations

Procurement

Mine Ops Legal HR IT

Finance

HSE

Log keeper

CRISIS CONTROL – ACTIONS BY CMT LEADER

• Develop and implement strategy to regain control of the

issues.

• Tailor the CMT with the most appropriate and available

managers. Allocate one member as log keeper.

• Send one member to fight for information from the EMT if

activated. Use one member to visually display facts.

• Make an early decision to activate the Government Affairs

Support Team and HR Support Team if required.

• Resist the tactical urge to become directly involved in the

EMT, if the crisis stems from an emergency. Work in team

sessions, typically 30-40 minutes.

• Use team timeouts, typically 20-30 minutes to directly engage

stakeholders by telephone or meetings. Timeouts become

longer when implementing crisis strategy.

• Use disciplined team updates, less than 5 minutes in duration

Find facts

Identify

issues

Prioritise Issues

Implement

Strategy

Updates CMT Process

Time Out Team

Sessions

CMT OPERATION

People Environ

ment Assets

Business

Continuity

Reputati

on Liability

STEP 1 - FIND THE FACTS & IDENTIFY THE KEY

STAKEHOLDERS

Establish what facts are known and what facts need to be

found or verified under the following headings:

CMT OPERATION

Business Continuity Reputation Liability

Extent of

involvement and

what assets or

ventures are

affected?

Financial impact?

Business threat or

direct interruption

of business?

How is the incident

or issue

developing?

Associated

constraints on other

assets or ventures?

Positive or

negative

perceptions?

Media led rumour

or speculation?

Current level of

enquiry, or

interest by local,

national and

international

media?

Extent of

liabilities, claims

or penalties?

Criminal liability?

Major third party

liability?

Significant

penalty or fine?

Financial impact

and

compensation?

Insurers?

STEP 2 - IDENTIFY ISSUES

CMT OPERATION STEP 3 - BRAINSTORM AND PRIORITISE THE KEY ISSUES

Business Continuity Reputation Liability

Resumption of

operations?

Impact on

customers?

Impact on

suppliers?

Own equipment

and property?

Local, national

and international

regulatory

impacts?

Overall effect

likely on the

industry?

Current and

likely perception

of the incident?

Government

involvement?

Likely effects on

reputation?

Likely impacts

on or response

from pressure

groups and

agencies?

Other industry

companies?

Clarify legal

relationships?

Review the

composition of

investigations and

use of an

independent third

party?

Publicise public

guidelines for

compensation as

early as possible

Insurance?

Loss of revenue?

Legal issues?

CMT OPERATION

STEP 4 - DEVELOP AND IMPLEMENT CRISIS

STRATEGY

• Exploit opportunities. Make direct and indirect contact

with stakeholders to regain control of the issues and the

BGC commercial position.

• Continuously repeat the process until BGC can return

to line management and normal daily routine.

“One of the true tests of leadership is the

ability to recognize a problem before it

becomes an emergency.”