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Ansvar Broker Education Series:
Avoiding a Crisis through
Risk Management
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Matt AbslomDeputy General Manager
- Sales Southern
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Ian IrelandGeneral Manager - Sales
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GET CLIENTS CRISIS READY:
UNDERSTANDING RISK, ISSUES & CRISIS MANAGEMENT
Ansvar Insurance
Broker Education Forum
In Confidence
Allan Briggs
May 2014
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au
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SUMMARY
Introduction
• Briggs Communications & how we know about crisis
Context
• Our networked & social business environment
• The link between reputation & crisis management
The Problem
• What could possibly go wrong for your clients?
• How crises look; how crises feel
Challenges & Opportunities
• Common barriers to crisis preparedness & opportunities to improve
Our Solution
• The resilience paradigm
• Our 5 Step Crisis Ready Process
• How we add value
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 5
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WHY WE DO CRISIS WORK…
79% of business decision-makers believe they are only 12 months from a potential crisis
(Burson-Marstellar 2011 global survey)
Communication is critical to risk, issues & crisis management
Our approach based on 25 years’ experience + theory/research + industry thinking
• Black Saturday, Kerang Rail Accident, Gangland Shootings
• SES volunteer drowning
• Non-profit foundation / family violence sector
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 6
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ENTERPRISE ENVIRONMENT
We all do business in a networked and social world…
• Technology and social media facilitate citizen journalism everywhere
• Inside & outside organisations
• Global markets and competition
• Increasing public/media scrutiny & customer demand for transparency and quality
• Customers have choice and shop around
• Customers, stakeholders & media talk publicly. A lot!
• Heavy regulation
• OH&S
• Health & aged care compliance
• Litigious society – civil, criminal, coronial, royal commission investigations
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 7
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RISK, ISSUES, CRISIS & REPUTATION
Perception IS reality…
Risk = Hazard + Outrage (Dr. Peter Sandman)
Enterprise risks are reputational risks:
• Personal injury
• Economic loss
• Environmental damage
• Business interruption
• Legal proceedings
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 8
> BECOME reputational threats
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Reputation is an Asset; Crisis is an Opportunity
“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke
stands for danger; the other for opportunity. In a crisis, be aware of the danger
– but recognise the opportunity” (John F. Kennedy, 1959)
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 9
WHY MANAGE RISK, ISSUES & CRISIS?
Risk, issues and crisis management
> Reputation Management > Business Resilience
• Reputation increasingly important
• Health, aged care, education & non-profits
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OPPORTUNITY:
REDUCE RISK & OPTIMISE RESPONSE
Risk Management is part of best practice Crisis Management
“People will treat you the way you allow them to treat you” (Dr. Phil)
If your clients don’t plan & prepare they give up the right to have any control over a
situation & its outcomes
• Reputational risk response strategies:
• These days, its impossible to avoid reputational risk
• May or may not insure against it
• But, can always reduce risk through a process of planning & preparation
• Risk & issues management: prevention & early intervention
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 10
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A CRISIS: HOW IT LOOKS
What could possibly go wrong for your clients…?
Crises are caused by diverse threats and events –
• Malpractice/misconduct
• Protest/activism
• Investigation/Inquiry
• Technology failure
• Natural disaster
• Criminal malevolence (alleged or acutal)
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 11
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CRISIS: CARDIOLOGIST
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 12
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CRISIS: CATHOLIC CHURCH
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 13
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CRISIS: SALVATION ARMY
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 14
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CRISIS: SALVATION ARMY
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 15
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CRISIS: AGED CARE
http://www.smh.com.au/nsw/a-firefighters-worst-nightmare-as-multiple-deaths-confirmed-after-fire-
breaks-out-in-nursing-home-20111118-1nlqs.html
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 16
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A CRISIS: HOW IT FEELS
• High pressure: dynamic & complex
• Fast-moving: news spreads quickly
• Social media response within 20mins
• Traditional media response within 1hr
• Need to fill the void, or media fill it for you
• Frustrating
• Journalists & traditional media are persistent & ruthless
• Others will use an incident to promote their cause
• Fatiguing
• Immediate situation & aftermath may last days, weeks, months
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 17
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A CRISIS: SINK OR SWIM?
Outcomes encompass anticipated & unanticipated issues
• Success comes down to communication internally & externally
• Best practice built on: right information; right people; right time
• Halo effect: what you say impacts on many
• Individuals
• Community
• Stakeholders – shareholders etc
• Broader industry
• Crises make or break leaders and reputations
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 18
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OVERCOMING CHALLENGES
Barriers to preparedness & opportunities to improve
When organisations are:
• Complacent
• Transition to: Understanding communication environment & their exposure
• Uneducated about risks & consequences
• Transition to: Recognising reputational value & consequences of enterprise risks
• Incapable & inexperienced in crisis communication
• Transition to: Skilled & rehearsed to manage reputational risks, issues and crises
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 19
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OUR SOLUTION
Best practice Crisis Management – the resilience paradigm
We build crisis management capabilities > We embed them in processes
But first…Clients have to:
• Accept a crisis will happen
• The reality: not IF but WHEN
• Executives must prioritise preparation – cultural leadership, budget & time
• Expect crisis
• Only cyclical processes & automation will maintain a state of crisis readiness
• Act on exposure
• Engage specialist advice & do the work before it happens
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 20
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CRISIS READY: HOW WE ACHIEVE IT
Briggs Communications
Five Step Crisis Ready Process™
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 21
1. Detect & Mitigate
2. Plan & Prepare
3. Respond & Contain
4. Recover
5. Learn
The crisis management lifecycle
1. Diagnosis
2. Planning
3. Training4. Scenario
Testing
5. Evaluation & Adaption
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THE SOLUTION
How it looks…
Competent; Confident; In Control
• Effective, not just compliant
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 22
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ADDING VALUE
Building business resilience & contributing to strategic goals
When organisations prepare for crises they:
• Identify underlying problems and ways to integrate/reduce risks across other
areas of business
• Gain a deeper understanding of their business environment
• Uncover opportunities to share applications, systems, experience and knowledge
across business divisions
• Acquire skills, management structures, leadership confidence and employee
engagement that enhances performance parts of daily business
• Have promotable outcomes that can enhance their reputation among customers,
investors, regulators etc
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au 23
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WHAT COULD POSSIBLY GO WRONG?
Risk, issues & crisis management is about
effective communication
Talent | Training | Crisis
Suite 5, Level 10, 118 Queens Street, Melbourne VIC 3000 T: 03 9602 4310 W: briggscommunications.com.au
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Questions?
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Phil GareGeneral Manager - Claims
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• Melbourne-based team
• Case manage individual claims through to conclusion
• Supported by
• Local Sales team
• Key Panel providers
• Contacts
• Property - Matt Fyfe [email protected]
• Casualty - Lesley Butler [email protected]
• General - 1300 650 540
Ansvar Claims
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• Command and control – visibility
• Composure – providing guidance
• Communicate – timely and consistent messages
• Engage all decision makers directly
• Gather facts
• Be responsive
• Pre-empt what your stakeholders will want/need
Avoiding a Crisis through Risk Management
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• Post loss it is too late to get organised
• Insured Values
• Under Insurance – MD and BI
• Audit and Risk committee
• Plans
• Safety, continuation, reinstatement, sensitive items
• Lessons
• Risk Management plans
• Communication – decision makers involved
• Assist with options
Catastrophe Events
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• Litigious country
• Ansvar core segments
• Numerous hazards
• Volunteers
• Training and guidance on all roles
• Lessons
• Involve all parties
• Engage experts – coordinated and consistent
• Communicate – regularly and often
Liability
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• Procedures and Policies
• Could the organisation have stopped or prevented incident
• Proactive risk management is key
• Training and guidance for all roles and all people
• Lessons
• Internally protect sensitive information
• Engage experts to gather facts
• Manage and engage all parties
• There is risk everywhere
Liability - PSA
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• Directors in our segments
• Typically unpaid
• Work in complex organisations
• Training and guidance
• Span of control
• Understanding the legal obligations
• Lessons
• Untangle web of accountability and authority
• Advise clients to take and keep detailed notes
• Help clients through the legal process
Directors and Officers
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Questions?
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Thank You
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Ansvar InsuranceAnsvar House Level 12,
432 St Kilda Rd, Melbourne VIC 3004
1300 650 540