Crisis Management Plan - Operation

Maintenance of an effective Crisis Management Plan requires active committees with an committed membership focused on pre-crisis preparation. In addition, there should be a major commitment to continuous identification and measurement of loss exposures and an aggressive training program.

The Crisis Management Committee should meet monthly for one hour for the purpose of addressing the various responsibilities of formulating and implementing as well as operating the Crisis Management Plan. In order to substantiate operations and to maintain an adequate defense posture, detailed minutes of each meeting should be kept. Minutes of a typical meeting and identified task activities would include, but not be limited to:

The Emergency Response committee should meet for at least one hour monthly to focus on appropriate emergency response training. Minutes and a detailed accounting of activities should be maintained for documentation purposes concerning an acceptable defense posture.

Activities and documentation should include, but not be limited to:

These on-going procedures should ensure that the Crisis Management Plan is effective and responsive to emergencies and capable of reaching the agreed-upon objectives.

The Crisis Management Committee on-going operation involves continuous management and refinement of the existing Crisis Management Plan. This is normally accomplished at the recommended monthly meetings as well as through individual Committee member task assignments. On-going major considerations of the Committee include, but are not limited to:

Key members of the Crisis Management Committee should have a simple rotation and availability scheduling assignment. This type of scheduling assignment is intended to preclude the majority of key Crisis Management Committee members from being out of town either on business or over a weekend all at one time. This type scheduling activity is not meant to inhibit either business or personal activities, but simply to provide for year round effective operations of the Crisis Management Plan,

The Crisis Management Committee training focuses on emergency preparedness encompassing contingency planning, maintaining continuity of operations and restoration of activities. Examples of the Crisis Management Committee focus on drills and review session activities include:

The Emergency Response Team focus is on immediate response to a crisis situation. The training should be focused on emergency first aid, fire evacuation techniques and fire suppression. It should be anticipated that in a major natural disaster, outside help may not arrive immediately. Therefore the responsibility of the Emergency Response Team is to provide all emergency services in the interim.

It is recommended that certain members of the Emergency Response Team participate in an outside first aid training program. It is desirable that the majority of the members qualify for the Standard First Aid Course (American Red Cross) which involves seven hours of training and provides for cardiopulmonary resuscitation (CPR) certification. It is strongly recommended that several members of the Emergency Response Team qualify for the Emergency Response Program (American Red Cross) which is fifty-two hours of advanced training including cardiopulmonary resuscitation.

The most effective, proven method of Plan management briefing and training involves an appropriate related hypothetical case study with presentation of a catastrophe scenario, a crisis management solution and a critique on the effectiveness of the solution. This type of training involves participant role playing in the hypothetical crisis case study relating to his/her organization. This allows for collective 'brainstorming' and yet does not result in interruption of operations nor cause undue awareness on the part of staff. The approach is to have a concise description of the hypothetical crisis situation and then the assignment of all participants on a particular team seeking a reasonable solution to the problem. A successful role playing approach has been to have three teams as follows:

Principal assignment would be presentation of measures that were implemented prior to the hypothetical claim

Present action to be taken during crisis situation as well as scope of depth of training prior to event

The team assignment would be to critique the input of the two prior teams with respect to seeking a solution to the case problem.

The case study assignment and drill may be readily conducted in a typical management meeting room without impacting operations or production. With the exception of an occasional major evacuation drill, there is seldom justification for training activities to impact on-going operations or cause business interruption.

The following education methods are also appropriate techniques for utilization in Crisis Management Plan training activities:

In selecting training topics and educational methods to be used, emphasis must be placed on appropriateness for the staff involved and the identified needs of the organization. Training in areas where there is little or no likelihood of occurrence should be minimal.

A typical continuing education plan for the Crisis Management Committee and Emergency Response Team should encompass the following training topics:

The type and extent of crisis management resources that should be maintained varies widely. Modifying the extent of supplies are factors involving life load, earthquake exposure, severe weather, and high rise building locations and remote or isolated facilities.

Occupational Health and Safety Act (OSHA) requirements regarding emergency equipment and first aid supplies should be considered to be an absolute minimum code. In the anticipated likelihood of failure of the fire department and paramedics to respond due to an earthquake or other natural disaster, the Emergency Response Team most likely will need a broader selection and quantity of first aid equipment.

Normally, where there is an earthquake exposure, the policy is to maintain three days of food and drinking water supply. In addition, there should be a supply of water for other uses during the emergency duration. In the event of a remote location and the exposure of severe weather, blankets, cots and emergency restroom facilities should be considered. Portable battery operated lanterns and flashlights are absolutely essential. Several portable radios that receive AM/FM emergency information are also essential.

Emergency tools for a larger facility should be assembled at several staging points and available to the Emergency Response Team. The Emergency Response Team should keep an inventory of these tools and understand their usage as a result of regular training. Tools inventory should include, but not be limited to:

In the event the facility is equipped with an automatic sprinkler system, then there should be an additional array of items available to the Emergency Response Team to include, but not be limited to:

In addition to the Crisis Management Plan Manual including a current Emergency Directory, the following documents should be available:

The preceding information is understood to be a guide for consideration of resources and is not meant to be ultimate answer. The extent and type of resources available for crisis depends primarily upon the magnitude of the operation and the existing exposures as well as the remoteness or isolation of the subject facilities.

A vital ingredient of ensuring program effectiveness is the utilization of an audit program using a Crisis Management Audit Committee. It is essential that the chairperson of the Crisis Management Audit Committee report to someone other than the chairperson of the Crisis Management Committee, who is the director of the plan. In order to eliminate bias and to provide for total objectivity, the Audit Committee Chairperson should report to the Executive Committee of the Board of Directors.

Highly sensitive crises are those loss potential exposures normally considered confidential and are explosive given general media exploitation. The majority of highly sensitive exposures all have in common the scarcity of time available to cope with the situation. For this reason, pre-loss planning becomes vitally important as associated with coping with many of the typical confidential crisis exposures. These exposures may include, but are not limited to the following:

It must be assumed that the majority of highly sensitive crisis exposures are monumental in the effect upon the operating organization as well as highly sensitive to public exposure and must be treated confidentially.

Frequently, major organizations have established an Executive Security Committee which reports to the Executive Committee. This strategy provides for quick action and direction for senior executives without the encumbrance of attempting to get Board of Directors response and input to a sensitive crisis situation when timing may be critical. The operation becomes more manageable when the anticipated scope of responsibilities is within a Board of Directors pre-approved security program with defined action objectives involving both on-going procedures and policies.

The Executive Security Committee should be carefully selected and should meet on a regular basis. In the event of a highly sensitive crisis occurrence, this group should be ready to convene immediately regardless of day of week or time of day. In addition, the appropriate special resources should be indoctrinated as to anticipated action on a pre-crisis basis and be readily available to assist the Executive Security Committee as warranted. Banking arrangements should be established in the event extortion payments are anticipated or would be approved. This provision is generally rather simple to establish and provides for cash availability on a 24 hour basis seven days per week to an established corporate client. It must be pointed out that should kidnap and ransom insurance coverage exist, it is an indemnification contract providing for reimbursement, not for the initial ransom demand payment.

Exhibit 14.1, provides an overview of a feasible management solution for handling highly sensitive crisis exposures. The Exhibit indicates the reporting chain of command between the Board of Directors Executive Committee and the Executive Security Committee as well as indicating the reliance upon the pre-approved security policies and prioritized procedures. In addition, the Exhibit depicts risk financing strategy and options, provides the various special resources and identifies the response strategy for the various highly sensitive crisis exposures.