Presentation on theme: "Risk Management Professor Chris Kinsville-Heyne"— Presentation transcript:
1Risk Management Professor Chris Kinsville-Heyne Analysis of Political and Corporate Leadership During Crisis Indonesia, September 2013
2Chris Kinsville-Heyne: Rapid CV Royal Masonic School for Boys, UKGraduated:Wadham College, OxfordRoyal Military Academy, SandhurstCourses Passed:Jungle Warfare & Survival (Belize)Arctic Warfare & Survival (Norway)Escape & Evasion (Denmark)Resistance to Interrogation (US)Helicopter Pilot Selection (UK)Marksman, (Pistol, Rifle, Support Weapons, UK)RE Intelligence Officer (UK)Bobsleigh Pilot (Olympic run, Lillehammer, Norway)NATO Spokesperson (Bosnia & Herzegovina)
3Military Staff College, UK NATO Spokesman (Bosnia)Senior Media Trainer - UN Training Advisory Team (UK)Associate Director, Weber Shandwick (UK & KSA, for STC)Personal Communications advisor to President of Saudi Telecom, Abdulrahman Al YamiCountry Director, Hill & Knowlton (Qatar for Qtel, Doha)Part of McKinsey Consultant teamCommunications Advisor to CEO,Dr Nasser Marafi, and Qtel Board
4Owner of C3i Strategic Solutions, Dubai (Media Training, Crisis Communication & Management,Presentation Skills)Client list includes:(former) Prime Minister of IraqH.H. Sheikh Sultan Al Nahyan (UAE)CEOs and MDs from:
5Advisor/Lecturer: U.S. State Department, Washington UK Civil Service, LondonMinistry of Presidential Affairs, UAEAbu Dhabi TourismAbu Dhabi MunicipalityDuke Corporate EducationHult International Business School (MBA Programme)EU-appointed Strategic Communications Advisor to NTC, LibyaUNOPS (Syria) Strategic Communications advisor
7“The attempt to mitigate the effect and impact of uncertainty upon objectives…”
8Task 1“Buddy” interviewsLook at the person next to youIn the next 5 minutes you will each find out 3 things that define that personYou will then have 30 seconds to report your findings
9In a crisis, accurate and precise briefings are critical. What was the point of the “buddy” interviews?In a crisis…You will need to ask the right questions when you are being briefed and get to the heart of the issue as quickly as possible.Using that information, you will need to brief others, accurately and briefly.*Remember, people who work for you, and the people you work for, can only be as efficient as your briefing allows them to be.In a crisis, accurate and precise briefings are critical.
10One of the most important lessons I have learned in my life… Develop the ability to make the jump from slow-time thinking to quick-time doing.
12Ideal risk management: Minimises spendingMinimises the negative effects of risks
13MethodRisk Management consist of the following elements:Identify, characterize, and assess threatsAssess the vulnerability of critical assets to specific threatsDetermine the risk (i.e. the expected consequences of specific types of attacks on specific assets)Identify ways to reduce those risksPrioritise risk reduction measures based on a strategy
14Risk management should: create valuebe an integral part of organizational processesbe part of decision makingexplicitly address uncertainty and assumptionsbe systematic and structuredbe based on the best available informationbe tailorabletake into account human factorsbe transparent and inclusivebe dynamic, iterative and responsive to changebe capable of continual improvement and enhancement
15Potential risk treatments Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories:Avoidance (eliminate, withdraw from or not become involved)Reduction (optimise - mitigate)Sharing (transfer - outsource or insure)Retention (accept and budget)
16Select appropriate controls or countermeasures to measure each risk. Risk mitigation needs to be approved by the appropriate level of management.For instance, a risk concerning computer virus risks would have the authority of IT management for decisions,
17While the image of the organisation should have communications top management decision behind it.
18Seven rules for the practice of risk communication Accept and involve the public/other consumers as legitimate partners.Plan carefully and evaluate your efforts with a focus on your strengths, weaknesses, opportunities, and threats.Listen to the public's specific concerns.Be honest, frank, and open.Coordinate and collaborate with other credible sources.Meet the needs of the media.Speak clearly and with compassion.
20The BP Deepwater Horizon catastrophe casts a shadow on all oil company CEO’s and senior executives, not just BP’s Tony Hayward.It also provides lessons that every large organisation can learn.
21While CEO Tony Hayward and COO Doug Suttles will suffer the brunt of criticism and consequences; all enterprise board members should see this as a wake-up call.
22“Risk remains a key issue for every business, but at BP it is fundamental to what we do. We operate at the frontiers of the energy industry, in an environment where attitude to risk is key.The countries we work in, the technical and physical challenges we take on and the investments we make – these all demand a sharp focus on how we manage risk.”Tony Hayward
23The greatest failure of most enterprise risk management programs is that they cannot de-center. That is, they cannot see the risk from different perspectives internally or externally.
24Poor or no situation awareness generates a lack of expectancies, resulting in inadequate preparation for the future.
25According to a September 2006 poll conducted by Harris Interactive of senior executives in large corporations, the top crisis situations that worry corporate executives were:61% compromise of corporate information systems
2655% terrorism40% corporate wrongdoing32% environmental mishaps30% negative claims about products, health or safety
2729% Internet rumors and misinformation 24% industrial accidents23% product contamination or tampering21% product recalls19% workplace violence
28Obviously the key stakeholders vary according to the organisation and the circumstances of each crisis.However, the concerns of each broad group can be identified well ahead of any crisis.For instance:
29Employees want their families to know they are safe, as would emergency and medical workers. Families of victims want progress reports on their loved ones and want to know what happened in the incident.
30Directors and senior management want to know the big picture information about the incident and the impact on the viability of your organisation.
31Community leaders want to know sufficient resources are being devoted to the crisis response and victims, and that the organisation is showing leadership and has the incident under control.They need information they can pass on to people they think should know about the crisis, and they want to express their concern.
32Peak industry bodies want to know about the business issues such as the impact on your organisation’s revenue, any legal liability, when the organisation will return to business and what protection was in place for employees.Finance sector stakeholders want to know the impact on revenue and profitability and any likely future financial implications.Such stakeholders include creditors, suppliers, insurance companies and bankers.
33The media want access to information and to spokespersons so they can report within their deadlines.
34Employees should be the main priority In times of crisis, clear lines of communication should be established to reach employees at all levels and in all locations.
35Questions need to be resolved by the public relations department so you can inform other stakeholders about:where employees can obtain information – from their usual manager or from special telephone lines, meeting rooms, notice boards or other sources;whether there is a monitoring system for post-traumatic stress of employees;if there are services available for families of victims;whether transport is needed for victims and their families.
36Planning should take into account ways to continually update information during a crisis. For every message to the media, there should be a prior message to employees.To all AAM employees: Please be aware of the latest developments in the current situation…
37Avoid these five types of mistakes Inadequate accessibility to stakeholdersLack of understandability in the haste to communicateLack of enthusiasm in the contactProblems with timeliness (too little, too late)Perceptions of arrogance (e.g. stakeholders are not valued)
38.. if you are trustworthy or not in about 5 seconds….. In general, people decide if they like you or not in about 3 seconds….... if you are trustworthy or not in about 5 seconds….... and if you are lying or not in about 7 seconds….
39…therefore, and according to scientific studies, on average, a spokesman during a time of crisis, has 8 seconds to make an impactsource: institute for communication studies, UK
40surveys show people remember: - 3 per cent of what you say you must bear in mind non-verbal actions – appearance, gestures and voice modulationsurveys show people remember:- 3 per cent of what you say- 7 per cent of how you say it- 90 per cent of how you look when you say itsource: institute for communication studies, UK
41One of the most important lessons I have learned in my life… Develop the ability to make the jump from slow-time thinking to quick-time doing.
42Prior Preparation and Planning Prevents a Poor Performance In SummaryPrior Preparation and Planning Prevents a Poor Performance
441. Diligence - How hard do you work? 2. Persistence - For how long will you work to achieve your goal?3. Understanding - Can you listen to others’ problems?
454. Confrontation - Do you have problems confronting adversaries? 5. Public Speaking - Can you stand in front of crowds and talk to them?6. Problem Solving - Are you able to find appropriate solutions?
467. Role Model - Do people look up to you and your values? 8. Disposition - Are you easy to get along with?9. Flexibility - Can you change your schedule according to group majority?
4710. Ambition - Do you ever settle for mediocrity? 11. Organization - Can you keep a schedule for you and your followers?12. Punctuality - Are you on time for your appointments?
4813. Loyalty - Do you drop out of programs or change votes? 14. Street Wise - Can you hold your own voice in the real world?15. Versatility - Are you a jack of all trades or a master of one?