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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,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 professionals career.A well-written,well-executed crisis management plan can mean the difference between an organizations 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,Cost of a Crisis Example-Data Breach,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,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.,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,After,Crisis/Event,Pre-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,Activa
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