1. New Realities in Handling a Crisis

2. Why Marsh & McLennan Global BCM Practice: 80 consultants 30 countries
Benchmark
experience
Consistent BCM
Consulting
process and
deliverable
Strategic
Risks
Financial
Risks
Operational
Risks
MMC
Hazard
Risks

3. Safeguard stakeholders investments and company’s assets
Company objectives
Global leadership
Satisfied customers
Stable profit levels
Return on shareholders investments
Satisfied employees
Profitable partnerships
Corporate Governance issues- transparency
The nature of activities
Strategy
Financial policy
Social participation and responsibility
Organisational structure
Source: Philips.com; Shell.com; Unilever.com, Akzo.com & DSM.com

4. Impact To Your Shareholder Value
Companies with positive approach to business continuity 15
Recovers 10 5
Management skills and response
Stakeholder Communication
Insurance alone is inadequate
Plans need to be implemented
Time -5
CAR %
-10
Other companies
-15
Nonrecovers
-20
| Event occurs
250 days |
Source: Knight / Pretty high profile catastrophes impact on shareholder value (CAR = Cumulative Abnormal Returns)

5. Risk Management structure

6. BCM structure

7. Focused on the strategic and operational issues and implications.
How to handle a crisis? +
Operational
and/ or
Hazard risks
Risk =
Emergency
Response
Recovery
Focused on controlling and fixing the exposure involved in the accident
Crisis
management
Focused on the strategic and operational issues and implications.

8. BCM Objective To be prepared in case of a major incident or disaster:
Organisational structure
Incident response
Issues & implications
Issues & implications
Client perspective
Shareholder perspective
Employee perspective
Liability issues
Social responsibilities
Reputation
Contractual obligations
Market position
Media
etc. .

9. Integrated plan development
Company structure
Potential threats
Company results
Financial performance indicators
Objectives
Competition
Liability claims
Customer demand shortfall
External processes
Client satisfaction
Impact on society
Loss of reputation / Image
Changing legislation
Interruption of services
Internal processes
Operational processes
Partnerships
People management
Fire
Logistic / production interruption
Loss of knowledge
Knowledge - Management
Leadership
Strategy & policy
Pricing policy
Organisational structure
Loss of management info. systems
Formulate a worst case scenario

10. Integrated plan development

11. BCM delivery
To create a compact and orderly action-oriented response and recovery plan which will assist senior management to minimize the impact of a catastrophic event and support them during the recovery stage.

12. Sample Roadmap BCM plan
Emergency Response Plan
Crisis Management /
Communication Plan
Business
Recovery Plan
Activity
Time objective

13. Benefits to your organisation
Being prepared
Improving the risk awareness within your organisation
The final plan will be a practical and workable management tool showing your stakeholders that risks are understood and managed.
Protecting the enterprise value of your company looking at the total value supply chain.

14. Experience Engineering/ construction Manufacturing Mining
Telecommunications / Media/ IT
Utilities
Transportation/ Logistic centers
Food industry
Financial institutes
Public sector
Medical

15. Questions / Remarks ? Local contact: Marsh s.r.l.
For more information:
Andes Lam (Asia) (85-22)
William Pollock (Australia) (61-39)
Doede DeWaij (Cont. Europe) (31-10)
Chris Rigby-Smith (UK) (44-173)
Glenn Buser (US) (1-212)
Local contact: Marsh s.r.l.
#46-48 Alexandru Constantinescu Str.
Sector 1, Bucharest
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