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CRM Control of Risk > Week 5 - Crisis Management & Disaster Planning > Flashcards

Week 5 - Crisis Management & Disaster Planning Flashcards

Crisis Management/Disaster Planning Principles

1
Q

ID Phases of crisis (pre to post crisis phases)

A

1.THREAT- likely but not happened

  1. WARNING - imminent
  2. EVENT - occurs at time/place with POTENTIAL adverse affects
  3. IMPACT - the effects of the event
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2
Q

Define Crisis

A

Any EVENT with impact that exceeds normal response capacity.

Any CRITICAL INCIDENT threatening life & safety of people; damage to environment, property or data; disruption of operations or ability to carry out mission & goals of organization; threat to financial welfare & image of organization

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3
Q

ID and define 7 (seven) characteristics of crisis

A
  1. Potential to damage reputation

2. One or more asset classes affected (people, property, etc)

3. Loss or interruption of operations

4. Damage to consumer, shareholder, employee confidence (or sometimes strengthen image)

  1. May involve multiple audiences
  2. May be of interest to the media, or forgotten
  3. May be unique & entirely unpredictable or may be largely anticipated
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4
Q

What are the potential impacts of a crisis - what does a DR plan need to address

A
  1. disruption in operations, shutdown or possible bankruptcy
  2. serious injury to people
  3. threat to organization reputation
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5
Q

ID SIX general sources (causes) of crisis

A
  1. Human hazards
  2. Environmental or natural hazards
  3. Industrial or technological disasters
  4. Biological or pandemic disasters
  5. Infrastructure breakdowns
  6. Transportation breakdowns
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6
Q

ID characteristics of Human hazards

A
  1. may be accidental, organized or deliberate
  2. difficult to avoid
  3. very expensive to mitigate
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7
Q

ID characteristics of environmental or natural hazards

A
  1. can be challenging or impossible to control
  2. can be widespread and far-reaching
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8
Q

ID characteristics of Industrial or technological disasters

A
  1. can run gamut from loose connection to failed system
  2. can be mitigated, reduced or avoided by REDUNDANCY
  3. far less expensive to PREVENT through maintenance
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9
Q

Define crisis management

A

act/process of managing crisis to prevent occurrence of catastrophic loss AND reduce impact of losses to the organization, including reputation and brand

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10
Q

Define 8 ( eight) principles of EFFECTIVE crisis management

A

1. COMPREHENSIVE - take into account all hazards, phases, stakeholders, impacts, etc

2. PROGRESSIVE - anticipate future, develop preventive & preparatory measures to build disaster resilient plans and operations

3. RISK DRIVEN - use sound RM principles (hazard ID, risk analysis, impact analysis) to assign priorities and resources

4. INTEGRATED - ensure unity of effort among all levels of enterprise and all elements of customers, suppliers, government and community

5. COLLABORATIVE - develop relationships to encurage trust; advocate team atmosphere; build concensus; facilitate communications

6. COORDINATED - synchronize activities to achieve common purpose

7. FLEXIBLE - use creative and innovative approaches to solve disaster challenges

8. PROFESSIONAL - value approach based on education, training, experience, ethical practice & continuous improvement

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11
Q

ID PRE-LOSS general goals (three) and RM goal

A

General Goals

  1. economy of operations
  2. legality of operations
  3. humanitarian activities

RM Goal: obtain full mgmt support & commitment to the DR program

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12
Q

ID POST-LOSS general goals (four) and RM goal

A

General goals

  1. restore/maintain operations
  2. sustain profits & stable earnings
  3. return to pre-loss ops, work towards growth
  4. maintain good public image

RM Goal: effectively & economically minimize the operational & financial impact of the crisis

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13
Q

ID 4 (four) essential steps to crisis management process

A
  1. disaster planning - most important step
  2. preparation
  3. response
  4. recovery
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14
Q

ID Disaster Planning Components (process) (long list)

A
  1. establish DR team
  2. conduct vulnerability and disaster analysis
  3. ID types & effects of disasters or crises
  4. ID critical products, services, operations
  5. assess current situation & capabilities
  6. ID external resources & their emergency plans
  7. ID internal resources & capabilities
  8. ID resource requirements (cash is king)
  9. **Prioritize activities **
  10. Others: Murphy’s law, vendor supply; proximity to risk factors (EQ, bomb factories)
  11. develop DR plan
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15
Q

planning process: ID components of DR planning team

A

1. Composition - all represented - levels depts, etc.; leader, mgmt support, etc

2. team member qualifications: expertise, authority, special knowledge/other skills, leadership skills

  1. establish team structure & responsibilities
  2. define authority & limits (crisis site & central authority)
  3. establish reasonable time line & budget for training, exercises & report to mgmt
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16
Q

planning process: ID critical products, services & operations (what is needed to continue operations?)

A
  1. operations, equipment, personnel
  2. utilities
  3. internal & external products & services
  4. vendor & customer lists - what are their vulnerabilities/issues
  5. ID applicable codes: building, zoning, EQ, fire, etc.
17
Q

planning process: List EXTERNAL resources & their emergency plans

A
  1. FEMA
  2. City/Community DR planning
  3. local/state associations
  4. American Red Cross
  5. Insurance brokers remediation services
  • pre-loss = ENGINEERING
  • post-loss = CLAIMS management
  1. fire/police departments
  2. vendor & clients (up/down supply chain)
  3. Utilities
18
Q

planning process: Identify INTERNAL resources & capabilities

A
  1. Key personnel from each operational unit
  2. backup personnel & services
  3. available equipment, fire suppression, communications, transportation
19
Q

planning process: ID DR resource requirements & supplies

A
  1. CASH IS KING - funding amount & sources
  2. supplies - water, 1st-aid, generators, gloves, etc.
  3. onsite versus off-site storage
  4. mitigation materials - sandbags, pumps, etc
  5. alternative premises - hot/cold site planning
20
Q

What types of plans are needed for each identified risk impact?

A

For each identified impact you need:

  1. Strategic plan
  2. Emergency response procedures
  3. mitigation plan
  4. recovery plan
  5. supporting documentation
21
Q

Identify DR preparation phase goal/objective

A

Goal: generate counter-measures for both loss prevention & loss reduction (frequency & severity) for each peril or crisis/situation identified during planning stage

22
Q

ID DR Preparation Phase components/steps

A
  1. ID hazards that may contribute to or cause peril to occur
  2. educate TEAM on how to ID hazards and perils (kidnap & ransom; product recall)
  3. establish maintenance/safety programs (prevent-mitigate potential impacts)
  4. develop & review preparation procedures
  5. know location of shut-off valves & controls in facility
  6. emergency response & evacuation procedures in place & practices
  7. Prevention measures for: fire, bomb threat; flood precautions, etc
  8. TRAIN & EDUCATE ALL EMPLOYEES - central component of preparation
23
Q

ID DR response steps

A
  1. Protect human life - ALWAYS FIRST
  2. provide employee/family assistance
  3. initiate coordination efforts (first responders and local/state/federal agencies)
  4. initiate COMMUNICATION efforts
  5. Activate DR Response Center (War Room)
  6. Initiate damage assessment (document details - status of utilities; damages & losses)
  7. Financial expenditures - keep receipts, etc
  8. Schedule Media time
  9. Utilize insurance partners & other contractual DR support partners
24
Q

Define recovery

A

RECOVERY:

combination of policies, procedures for restoring operations critical to organization’s resumption of ordinary business activities AFTER a disaster occurs

25
Q

Discuss Key elements of REPUTATION Management

A
  1. Reputation is a key corporate ASSET - Reputation mgmt is Strategic, proactive & ongoing
  2. Reputation mgmt requires specific communication goals
  3. Initial 12-hour (or 1st 15 minutes) is CRITICAL TIME LINE in process (social media, TV, etc)
  4. Crisis communication is an ART not a science
  5. Tell the story QUICKLY with as many FACTS as possible
  6. Enforce message discipline (acknowledge responsibility, control agenda, response must be proportionate to the crisis)
  7. take LONG-TERM corrective action & address SYSTEMIC PROBLEMS

CRM Control of Risk (4 decks)

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