clm204 -- crisis management strategies when disaster strikes.pptx

7/30/2019 CLM204 -- Crisis Management Strategies When Disaster Strikes.pptx

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Panelists:Dave Arick, ARM

Assistant Treasurer, Global Risk Management - InternationalPaper Company

David Smith

Vice President - Risk Management Family Dollar Stores

Robert Peterson, ARM, ALCM

Executive Vice President, National Client Development - SedgwickSession CLM204

Tuesday, April 17, 20122:15 p.m. - 3:30 p.m.

Welcome to RIMS 2012 Annual Conference & Exhibition


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Crisis ManagementStrategies

SedgwickBob Peterson

Executive Vice President, National Client DevelopmentSedgwick


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Despite best efforts, large losses are certainties

throughout a risk professionals career. A well-written, well-executed crisis management plan can

mean the difference between an organizationssurvival and demise. Exposures must be addressed

in preplanning discussions along with post crisisstrategies that include corporate communicationsand media relations as part of recovery to protect

the intangible assets of brand and reputation. Learnthe key elements of a crisis management plan,

steps to effective execution and how to maintainand restore confidence in your business in the

aftermath.

Introduction and Overview


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What is Crisis Management?

Also referred to as.

Crisis:Any situation that isthreatening or could threatento harm people or property,seriously interrupt business,damage reputation and/ornegatively impact share

value.

Disaster recovery

Business continuity planning


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Top 10 Crises of 2011

TepcoNaturaldisaster

NetflixChange inbusiness

model

DowChemical

Olympic

sponsorship

ECBEurozone

crisis

NewsCorpPhone

hackingscandal

PennState

Misconduct

allegations

Blackberry

Major outage

SonyData breach

HPChange in

board

members

QantasLabor dispute

http://www.holmesreport.com


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Summary

Predictable andquantifiable

events

Unexpected andunwelcome

events

Plan for

Minimize theimpact

Resume normaloperations

Ultimategoal


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Questions to Ask

What are theworst things

that canhappen to

my

organization?

What can weprevent?

What are wewilling to doto prevent

theevent/incide

nt?

Can weafford the

risk?

How will wedeal with it?

What is thereporting

andcommunication processduring the

crisis?


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Common Mistakes

Inadequateplanning

Failure to

bring thebusiness intothe planningand testing

of yourrecoveryefforts

Failure togain supportfrom senior-

level

managers


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3 Keys to Crisis Communications

Hon

estyLet everyone on

your team know

that your integrity

is the most

valuable

commodity you

have in a crisis and

it must not be

compromised.

Sp

eed

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.

Ima

ges

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-ag


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International PaperDave Arick, ARM

Assistant Treasurer, Global Risk Management

International Paper Company


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Global leader in paper andpackaging

$30 billion in 2011 sales

70,000 employees in 24+ countries Manufacturing locations (excludes

JVs)

39 pulp, paper and packaging mills

300+ converting, packaging andrecycling plants

200+ distribution branches

Includes Temple-Inland, acquired February 2


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Manmade incidents, likefires & explosions

Natural disasters, likehurricanes

Crises Come in Many Varieties


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A Historical View of Crisis ManagementEfforts

FM Global

recommendations(flood, hurricane,fire brigades,emergency

response, etc.)

Telephone hotlineto corporate staff

personnel

Facility-based

Risk management

Environment,health & safety

Unevencorporate

involvement,awareness

Informationtechnology


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Developing Management Support

Executive offices

relocating toMemphis

Concerns raisedpost-Katrina:

what if Memphis

has the BIGONE (i.e., a

majorearthquake)?

Whatpreparationshave been

made? What isneeded? How iscapital allocated

for this?

Eventual outcome: BCP department

December 2005 Meeting


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Crisis Management Timeline

General Management of the Organization

The Crisis Management Process

AfterCrisis/EventPre-Event

Risk management

Risk assessment

Loss prevention

Mitigation planningDeveloping responsive,comprehensiveinsurance 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 plansMitigationBusiness resumptionBusiness recovery


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Company Resources/Functions

InformationTechnology

Security

LegalEnvironment,

Health& Safety

OperationsFinance &

Accounting

TEAM

HR/Communications(incl. public affairs)


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Risk Managements Role in CrisisManagement

Focus ondriving lossprevention,

facilityresponse plans,and risk-based

decisions

ComplementBCP

department

efforts

Insurer and brokerresources

Regular discussionsand moral

support

Ensure thatcompanyinsurance

programsevolve as IPsunderstanding

of possiblescenarios

evolves -understandcoverage

if/when itsneeded!


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Some Closing Thoughts

support

guidance

on-going

Seniormanagement support iscritical

Plenty ofexternalguidance if noin-houseexpert

The work isnt donewhen the plans are!

Regular exercises totest plans and currentthinking, with plansupdated as new

learnings surface Sustain mode - mustkeep plans updated asthe company evolves,and teams must stayactive/current


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Family Dollar storesDavid Smith

Vice President, Risk ManagementFamily Dollar Stores


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Charlotte, NC based Family Dollar stores offerquality merchandise at everyday low prices, ineasy 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


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The Awakening......

for those of us who lived through these events, the only

marker well ever need is the tick of a clock at the 46th minute ofthe eighth hour of the 11th day

President George W. Bush


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Family Dollars Approach Since 9-11-01

The Windstorm

Phases: Pre - Katrina Ike (Katrina to

Irene) Irene & Forward

People CentricCommunications

CrossFunctional/Global

EvolutionaryExperience

Based

Risk Management

Enterprise RiskManagement

Infiltration

Initially IT

CentricReactionary

Natural DisasterSr.

Management ?

Store Operations


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Katrina to Irene (Ike)

Interdepartmental

Multi-disciplined

Proactive/Loss Avoidance

Proactive Reactivity

People Centric

Safety

Compassionate/supportive Communications

Business continuity plan in placeand practiced


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Communications is Critical


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Irene & Forward


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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


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Communications Post Event

DamageAssessment

Deployment Equipment Personnel Supplies

Safety

CrisisCounseling

Communications

Team membersupport


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Success Drives Credibility

People

Global Trade disruption

Financial

Cyber

Informationtechnology

ERM Natural Disasters & Beyond

West Liberty, KY,

March, 2012


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Questions?

Session CLM204Tuesday, April 17, 20122:15 p.m. - 3:30 p.m.

Welcome to RIMS 2012 Annual Conference & Exhibition

clm204 -- crisis management strategies when disaster strikes.pptx

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