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Panelists DaveArick ARMAssistantTreasurer GlobalRiskManagement InternationalPaperCompanyDavidSmithVicePresident RiskManagement FamilyDollarStoresRobertPeterson ARM ALCMExecutiveVicePresident NationalClientDevelopment Sedgwick SessionCLM204Tuesday April17 20122 15p m 3 30p m WelcometoRIMS2012AnnualConference Exhibition CrisisManagementStrategiesSedgwick BobPetersonExecutiveVicePresident NationalClientDevelopmentSedgwick Despitebestefforts largelossesarecertaintiesthroughoutariskprofessional scareer Awell written well executedcrisismanagementplancanmeanthedifferencebetweenanorganization ssurvivalanddemise Exposuresmustbeaddressedinpreplanningdiscussionsalongwithpostcrisisstrategiesthatincludecorporatecommunicationsandmediarelationsaspartofrecoverytoprotecttheintangibleassetsofbrandandreputation Learnthekeyelementsofacrisismanagementplan stepstoeffectiveexecutionandhowtomaintainandrestoreconfidenceinyourbusinessintheaftermath IntroductionandOverview WhatisCrisisManagement Alsoreferredtoas Crisis Anysituationthatisthreateningorcouldthreatentoharmpeopleorproperty seriouslyinterruptbusiness damagereputationand ornegativelyimpactsharevalue Disasterrecovery Businesscontinuityplanning Top10Crisesof2011 TepcoNaturaldisaster NetflixChangeinbusinessmodel DowChemicalOlympicsponsorship ECBEurozonecrisis NewsCorpPhonehackingscandal PennStateMisconductallegations BlackberryMajoroutage SonyDatabreach HPChangeinboardmembers QantasLabordispute CostofaCrisisExample DataBreach Reportednumberofdatabreachesinvolvingpersonaldata BusinessInsurance March 19 2012 Averageorganizationalcostofadatabreachinvolvingpersonaldata inmillions BusinessContinuityMeasures Topbusiness continuitymeasuresbeingadoptedbylargecompanies Source June2011internationalsurveyof391seniorexecutivesbytheEconomistIntelligenceUnitonbehalfofIBM Thesurveycoveredallindustries 48 oftherespondentsworkedincompaniesofmorethan 1billioninrevenue Summary Predictableandquantifiableevents Unexpectedandunwelcomeevents Planfor Minimizetheimpact Resumenormaloperations Ultimategoal QuestionstoAsk Whataretheworstthingsthatcanhappentomyorganization Whatcanweprevent Whatarewewillingtodotopreventtheevent incident Canweaffordtherisk Howwillwedealwithit Whatisthereportingandcommunicationprocessduringthecrisis CommonMistakes Inadequateplanning Failuretobringthebusinessintotheplanningandtestingofyourrecoveryefforts Failuretogainsupportfromsenior levelmanagers 3KeystoCrisisCommunications Honesty Leteveryoneonyourteamknowthatyourintegrityisthemostvaluablecommodityyouhaveinacrisisanditmustnotbecompromised Speed Thedynamicsofacrisiscanchangebasedonexternalevents Onceidentified empoweryourteamtomakethetacticaldecisionsrequiredtocommunicateeventsastheyunfold Images Peoplebelievewhattheyseeoverwhattheyhear Youcanhavegreattalkingpointsandagreatspokespersondestroyedbecausethewordsareoutofsyncwiththeimagescomingfromthescene CrisisManagementStrategiesInternationalPaper DaveArick ARMAssistantTreasurer GlobalRiskManagementInternationalPaperCompany Globalleaderinpaperandpackaging 30billionin2011sales70 000employeesin24 countriesManufacturinglocations excludesJVs 39pulp paperandpackagingmills300 converting packagingandrecyclingplants200 distributionbranches IncludesTemple Inland acquiredFebruary2012 Manmadeincidents likefires explosions Naturaldisasters likehurricanes CrisesComeinManyVarieties AHistoricalViewofCrisisManagementEfforts FMGlobalrecommendations flood hurricane firebrigades emergencyresponse etc Telephonehotlinetocorporatestaffpersonnel Facility based Riskmanagement Environment health safety Unevencorporateinvolvement awareness Informationtechnology DevelopingManagementSupport ExecutiveofficesrelocatingtoMemphis Concernsraisedpost Katrina whatifMemphishas theBIGONE i e amajorearthquake Whatpreparationshavebeenmade Whatisneeded Howiscapitalallocatedforthis Eventualoutcome BCPdepartment December2005Meeting CrisisManagementTimeline GeneralManagementoftheOrganization TheCrisisManagementProcess After Crisis Event Pre Event RiskmanagementRiskassessmentLosspreventionMitigationplanningDevelopingresponsive comprehensiveinsuranceprogramCommunicatingriskissuesBusinesscontinuityplansDevelopingplansTestingplansRevising updatingplansTrainingpersonnel Incidentmanagement Incidentresponse Communications Insurancerecovery ActivatingandexecutingplansMitigationBusinessresumptionBusinessrecovery CompanyResources Functions InformationTechnology Security Operations Finance Accounting TEAM HR Communications incl publicaffairs RiskManagement sRoleinCrisisManagement Focusondrivinglossprevention facilityresponseplans andrisk baseddecisions ComplementBCPdepartmenteffortsInsurerandbrokerresourcesRegulardiscussionsand moralsupport EnsurethatcompanyinsuranceprogramsevolveasIP sunderstandingofpossiblescenariosevolves understandcoverageif whenit sneeded SomeClosingThoughts support guidance on going Seniormanagementsupportiscritical Plentyofexternalguidanceifnoin houseexpert Theworkisn tdonewhentheplansare Regularexercisestotestplansandcurrentthinking withplansupdatedasnewlearningssurface Sustainmode mustkeepplansupdatedasthecompanyevolves andteamsmuststayactive current CrisisManagementStrategiesFamilyDollarstores DavidSmithVicePresident RiskManagementFamilyDollarStores Charlotte NCbasedFamilyDollarstoresofferqualitymerchandiseateverydaylowprices ineasytoshopneighborhoodlocations 53yearsinbusinessAFortune 300company7 200stores SmallBox 2to4teammembersstaffthestoresGrowth 1newstoreevery25hoursMorethan850millioncustomersperyear11distributioncenters45states50 000TeamMembersAnnualsalesinexcessof 8 5billion TheAwakening forthoseofuswholivedthroughtheseevents theonlymarkerwe lleverneedisthetickofaclockatthe46thminuteoftheeighthhourofthe11thday PresidentGeorgeW Bush FamilyDollar sApproachSince9 11 01 The Windstorm Phases Pre KatrinaIke KatrinatoIrene Irene Forward PeopleCentricCommunicationsCrossFunctional Global EvolutionaryExperienceBased RiskManagement EnterpriseRiskManagementInfiltration InitiallyITCentricReactionaryNaturalDisasterSr Management StoreOperations Post9 11toKatrina ITBackUpDataCentersInternalOutsourcedITBusinessContinuityPlanStatistically2 5StoresImpairedeachMonthResponsePlan Reactive TRIA KatrinatoIrene Ike InterdepartmentalMulti disciplinedProactive LossAvoidanceProactiveReactivityPeopleCentricSafetyCompassionate supportiveCo
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