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Crisis Management Planning Employee Health Safety and Security Expertise Panel · Presenter Name · 2008
©SHRM 20082 Introduction This sample presentation is intended for presentation to business leaders who are part of the crisis management/planning process. The presentation must be customized to include and match the employer’s own policies and practices.
©SHRM 20083 Framework Overview of the need Impact on business Building an infrastructure Key elements of effective plans Implementing the plan
©SHRM 20084 Overview Year after year, thousands of companies close their doors due to the effect of crises that are not managed well Crisis interrupts the operations where management is unprepared to deal with the event Typically, there are no plans to deal with crisis events
©SHRM 20085 Overview In most situations, there is no basic infrastructure Organizations with the “it won’t happen to me” mentality have considerable exposure
©SHRM 20086 Overview Situations where there are no defined processes in place to resume normal operations Increases the likelihood that the company will not be able to survive a crisis
©SHRM 20087 In the normal course of business, planning for unlikely crises sometimes takes a back seat. Putting energy, focus and expense into preparing for a crisis is often unattractive. Senior executives have admitted that they may be “whistling in the dark” about facing the reality of doing business in a major crisis situation. Our stakeholders expect us to look the “tiger” of a crisis in the eye and plan for our best response. Overview
©SHRM 20088 Overview Developing crisis management plans help a company fulfill a moral responsibility to protect employees Facilitates compliance with Federal, State and Local regulations Increases the capability of the organization to recover from crises Reduces exposure to civil and criminal liability Facilitates reductions in insurance premiums
©SHRM 20089 Why Plan? We should discuss… Can we afford to NOT plan for an interruption to our business? What are the costs of interruption in our business? Failure to deliver? Failure to get paid? What BCP’s function could be in our organization? What components we might have in a contingency plan? How we would benefit from having a plan in place?
©SHRM 200810 What could disrupt our business? Short Term: > Severe weather, Natural disasters, Power blackouts, Material shortage, Protests, Workplace violent event. Long Term: > Pandemic, Market Conditions, any disruption to the supply chain or the supply of labor that we depend on. Potential for Crisis
©SHRM 200811 What could disrupt our business? Which of those disruptions can we: > Plan for? > Control? > Deal with? How would we handle short term vs. long term disruptions? Potential Crisis
©SHRM 200812 Building a Basic Infrastructure Establish Planning Team Analyze Risks Resources & Capabilities Develop Plan Implement Plan Organizational Culture Risk Identification and Mitigation Exposure Controls Prevention Training Education Development
©SHRM 200813 Building a Basic Infrastructure Key Elements Establish a Planning Team Analyze Capabilities and Current Resources Identify and Develop a Functional Plan Implement the Plan
©SHRM 200814 Establishing a Planning Team Obtain Executive Support Validate Support of Organizational Culture: Is there a climate conducive to developing a plan? Obtain financial and other resources Identify who can contribute
©SHRM 200815 Establishing a Planning Team Forming the team encourages participation Increases the amount of energy on the project Enhances visibility of the planning process Provides broad perspective Planning Team Management Line Labor HR Support Services Legal Finance Maintenance Emergency Response, Safety & Security Public Relations
©SHRM 200816 Establishing a Planning Team Planning Team Management Line Labor HR Support Services Legal Finance Maintenance Emergency Response, Safety & Security Public Relations Enhances visibility of the planning process Provides broad perspective
©SHRM 200817 Analyze Capabilities and Resources Conduct a Risk Analysis Determine Vulnerabilities
©SHRM 200818 Analyze Capabilities and Resources Determine Vulnerabilities List Potential Crises Estimate Probability
©SHRM 200819 Analyze Capabilities and Resources > Assess Impact Human Impact Property Impact Business Impact > Internal and External Resources
©SHRM 200820 Planning Considerations Identifying core people and skills. What are the processes that are essential to the business? Who are the people that manage those processes? Who are our key decision makers (and doers) in the company? Analyze Capabilities and Resources
©SHRM 200821 Planning Considerations Determining the skills required to keep the essential parts of the business functioning. Putting a plan in place to back up the critical roles and skills. Who are our key suppliers? What can we do to manage these relationships? Analyze Capabilities and Resources
©SHRM 200822 Analyze Capabilities and Resources Review Internal Plans and Policies Evacuation Plans Fire Protection Plans Safety and Health Program Environmental Policies Security Procedures Insurance Programs Finance and Purchasing Procedures
©SHRM 200823 Analyze Capabilities and Resources Review Internal Plans and Policies Plant/Facility Closing Policies Employee Manuals Hazardous Materials Plans Process Safety Assessments Risk Management Plan Capital Improvement Plan Mutual Aid Agreements
©SHRM 200824 Analyze Capabilities and Resources Identify Risks Identify Risk Mitigation Techniques Focus on Exposure Controls and Prevention Establish Risk Mitigation and Exposure Control Plans
©SHRM 200825 Identify and Develop a Functional Plan Agree on methods to mitigate risks and exposures Develop plans and procedures to respond to identified risks and exposures
©SHRM 200826 Identify and Develop a Functional Plan Identify resources for resumption and recovery Develop plans and procedures for dealing with crises, disasters, emergencies and business recovery
©SHRM 200827 Identify and Develop a Functional Plan Plan Components Executive Summary Purpose Crisis Management Policy Authority and Responsibility Type of Events Covered by Plan Location of Response Plan Coordination
©SHRM 200828 Identify and Develop a Functional Plan Crisis Management Elements Direction and Control Communications Life Safety/Human Asset Protection Property Protection Community Outreach Coordination with Outside Agencies/Organizations Recovery and Restoration Administration and Logistics
©SHRM 200829 Implement the Plan Implementation is more than merely exercising the plan Means acting on recommendations made during the risk analysis Integrate plan into company operations Make it part of an annual review/audit process Training and education of employees
©SHRM 200830 Training and Education Individual roles and responsibilities Information about threats, hazards and protective actions Notification, warning and communications procedures Means for locating family Conduct Simulations
©SHRM 200831 Training and Education Crisis response procedures Accountability procedures Location of emergency equipment and shelter Shutdown procedures Conduct Simulations
©SHRM 200832 Plan Considerations Communications Contingency Plans Emergency Communications Family Communications Notification Warning
©SHRM 200833 Plan Considerations Life Safety Evacuation Planning Evacuation Routes Assembly Areas and Accountability Shelter Training and Information Preparedness
©SHRM 200834 Plan Considerations Property Protection Planning Considerations Protection Systems Mitigation Facility/Organizational Shutdown Records Preservation
©SHRM 200835 Plan Considerations Community Outreach Involving the Community Mutual Aid Agreements Community Service Public Information Media Relations
©SHRM 200836 Plan Considerations Recovery and Restoration Planning Considerations Continuity of Management Continuity of Operations Insurance Employee Support Resuming Operations
©SHRM 200837 Plan Considerations Administration and Logistics Administrative Actions Logistics
©SHRM 200838 A Final Thought “Don’t confuse motion with action” > Ernest Hemingway
©SHRM 200839 We would like to acknowledge that the preceding presentation was prepared by the Employee Health, Safety & Security, and the Employee Relations Special Expertise Panels. Questions?Comments?
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