1 Crisis Management & Emergency Response Preparedness – 2014 TYPHOON SEASON – ERP Development and Auditing

Peace of mind is a direct result of proper preparedness 2 Crisis Management & Emergency Response RISK Crisis Management planning is a HIGHLY PRUDENT BUSINESS MEASURE for any company operating in the Philippines. The failure of establishing proper Crisis Management protocols may potentially endanger the welfare of personnel, physical assets, and diminish the continuity of business processes resultant of a highly charged threat event. Further affects may include potential threats against company financial standing or public image. Where “decision-makers are versed” in the benefits of crisis management controls and business continuity, the development and implementation of an effective Crisis Management Program should be prioritized.

3 Development of Crisis Management program and ERP’s to provide management and personnel with a respective level of required guidelines to effectively prepare for and respond to unplanned crisis and emergency events. Audit of existing Crisis Management processes and ERP’s to measure and validate the effectiveness and efficiency of existing management processes to ensure such continues to comply with addressing defined risks. PROGRAM DEVELOPMENT OR PROGRAM AUDITING Crisis Management & Emergency Response PURPOSE

4 Fire & ExplosionsMedical Emergencies & AccidentsTropical Storms and TyphoonsEarthquakesBomb ThreatsKidnapping & ExtortionTerrorist Attacks Contingent upon the type of industry or business conducted in the Philippines, the following are examples of primary Hazards or Threat Events which historically occur in country with frequency. Crisis Management & Emergency Response HAZARD EVENTS

5 As we enter into the Philippines wet season, risks posed by the existence of low pressure areas that develop into tropical depressions, tropical storms and typhoons, is of greater concern than in past years. In part, this is due to the level of devastation witnessed during the November 2013 Super Typhoon Yolanda. Tropical Depressions Tropical Storms Typhoons Storm Surge & Coastal Flooding Strong/High Winds Extreme Rainfall & Inland Flooding Landslides, and Mudflows. Whenever a typhoon makes landfall, loss of lives and the destruction of properties are mainly due to the hazards generated within its circulation. Crisis Management & Emergency Response HAZARD EVENTS

6 The Philippines has been directly in the tropical cyclone path within Northwest Pacific Ocean region from 1980 to Only the southern portion of Palawan and Zamboanga Peninsula are exposed as less affected areas. Wikipedia/Global Tropical Cyclone Tracks World wide cumulative tracks of all tropical cyclones during the 1980 to 2005 time period. The Pacific Ocean west of the International Date Line see more tropical cyclones than any other basin. Wikipedia/Global Tropical Cyclone Tracks Crisis Management & Emergency Response BACKGROUND

7 Wikpedia.org Pacific typhoon seasons During the 2013 season, the region witnessed 13 Typhoon level Tropical Depressions. Two of which were Category 5 SUPER TYPHOONS. The 2013 season showed a substantial increase within the region over the previous four year average. Crisis Management & Emergency Response BACKGROUND

8 * March WMO Annual Climate Statement for 2013 Typhoon Yolanda, one of the strongest storms to ever make landfall, devastated parts of the central Philippines. Australia saw record warmth for the year, and Argentina its second warmest year and New Zealand its third warmest. Frigid polar air plummeted into parts of Europe and the southeast United States. Angola, Botswana and Namibia were gripped by severe drought. Heavy monsoon rains led to severe floods on the India-Nepal border. Heavy rains and floods impacted northeast China and the eastern Russian Federation. Heavy rains and floods affected Sudan and Somalia. Major drought affected southern China. Northeastern Brazil experienced its worst drought in the past 50 years. The widest tornado ever observed struck El Reno, Oklahoma in the United States. Extreme precipitation led to severe floods in Europe’s Alpine region and in Austria, Czech Republic, Germany, Poland, and Switzerland. Israel, Jordan, and Syria were struck by unprecedented snowfall. Greenhouse gas concentrations in the atmosphere reached record highs. The global oceans reached new record high sea levels. Key Global Climate Events of WMO Crisis Management & Emergency Response BACKGROUND

March World Meteorological Organization Annual Climate Statement for 2013: “….many of the extreme events of 2013 were consistent with what we would expect as a result of human-induced climate change. We saw heavier precipitation, more intense heat, and more damage from storm surges and coastal flooding as a result of sea level rise…..” (WMO Secretary-General). 9 In conjunction with this statement, higher sea surface temperatures (SST) are known to add energy to storms “increasing the intensity of tropical cyclones and typhoons”. Elevated SST reportedly contributed to the Category 5 Super Typhoons Odette (Sep-2013) and Yolanda (Nov-2013) that impacted the Philippines and other Asian regions*. *NOAA National Climatic Data Center, State of the Climate: Global Analysis for November 2013Global Analysis for November 2013 Crisis Management & Emergency Response BACKGROUND

10 The historical annual timeline of Typhoons in the region would suggest preparations to commence in early May, with monitoring and readiness maintained through the remainder of the calendar year. Crisis Management & Emergency Response PREPARATION

11 CRISIS RESPONSE Advance Warning, Evacuation/Rescue, and Emergency Assistance POST CRISIS Recovery and Business Continuity. PRE CRISIS Prevention, Preparedness, and Mitigation OSI Crisis Management auditing and development revolves around three primary disaster phases: Crisis Management & Emergency Response SCOPE

12 An initial pre-defined scope of work to support Client Crisis Management Planning would include, but not be limited to the following: Audit existing emergency response plans both general and specific to local Manila based assets, and provincial locations where business is may be conducted. Prioritize the review and auditing of plans for response to hazard events associated with the Typhoon season. Incorporate “lessons learned” resultant of response to the 2014 Typhoon Yolanda crisis event. Recommend and development plans for response to other prioritized hazard events as local or provincial requirements are identified. Business continuity and hazard impact on personnel, contractors, suppliers, and business units both locally and provincial. Confirm organization of Crisis Management Team for both local and provincial support requirements. Incorporate advance warning system for expediting threat event notification. Audit general guidelines for Command Centers & Staging Areas, Communications, Emergency Contact, Reporting. Training, Media Response, LGU Liaison. Crisis Management & Emergency Response SCOPE

Through years of in country “lessons learned”, OSI’s approach to crisis management and emergency response planning is aimed at streamlining processes and guidelines so personnel are not inundated with volumes of reading material in order to understand and affect quick response to crisis. Identify Priority Hazards Define Response Guidelines Appoint EMT Members Program Approval Round Table Program Training Activate Emergency Response Program 13 Crisis Management & Emergency Response METHODOLOGY

SIMPLICITY SIMPLICITY is the key direction for event response guidelines. The intent is to have two manuals: 14 Management Manual Provides the concept and program development. This manual would include Emergency Response Team development, and guidelines pertaining to program specific matters such as Command Centers, Communications, Emergency Contacts, Evacuation, Reporting, Media Response, and Training. This manual will also provide a more thorough descriptive review of cyclical response requirements for each specific crisis event. Emergency Response Guidelines A manual restricted to single page guidelines for each identified crisis situation, and is considered the operational guide for employees. Keeping inline with simplicity, contents are restricted to quick reference steps to implement immediate responses, and primary emergency communications information. Crisis Management & Emergency Response METHODOLOGY

Crisis Categories - In line with maintaining simplicity with the comprehension and implementation of crisis management responses, crisis categories are restricted to two levels: A Category 2 crisis is an incident that can be best handled at the local level, where support at the national level is limited. A Category 1 crisis is and incident which seriously endangers the safety of Abbott employees and provincial sales representative, which seriously impact on the company’s ability to conduct business. Such incidents are managed and supported at the national level. 15 Crisis Management & Emergency Response METHODOLOGY

Crisis Management Teams members are designated and based upon specific local and provincial crisis management requirements. The below are typical CMT designations, where an individual team member may assume one or more responsibilities, and not all positions may need to be utilized. Crisis Management Team 16 Chief Coordinator Deputy Coordinator Support Wardens Legal Coordinator Safety/Security Coordinator Finance Coordinator Amenities/Logistics Coordinator Public Relations Coordinator Communications Coordinator Crisis Management & Emergency Response METHODOLOGY

Provides a level for assure of financial and operational stability. Prove to foreign company hierarchy, insurers, and investors that the business is robust enough to cope with crisis situations. Provides opportunity for post-crisis growth. May fulfill regulatory requirements with client countries or external auditors. Demonstrates enhanced level of sophistication. Show of responsibility to Company employees, ensuring the welfare of themselves and family members are a priority during a crisis event. 17 Crisis Management & Emergency Response PROGRAM BENEFITS Apart from the primary goal of protecting personnel and assets during a crisis event, collateral benefits would include:

18 Crisis Management & Emergency Response CONTACT Orion Support Incorporated (OSI) 7/F, LTA Building 118 Perea Street, Legaspi Village Makati City, Metro Manila Philippines 1229 Land-line: (63-2) Fax: (63-2) Vonage Telephone: Lachlan McConnell Manager – Security Risk Management