Corporate Crises Management Presenter: G.Odbayar Mining National Operator 2015-11-11
Corporate Crises
Management
Presenter: G.Odbayar
Mining National Operator
2015-11-11
Structure
BOD
BGP
EMT
ERT
BTP
EMT
ERT
KSP
EMT
ERT
Steering Committee
UB
COMMUNICATION
CMT
HR
Dispatcher
Mine Ops HSE Procurement
Log keeper
On Scene Leader Capitan ERT
EMERGENCY RESPONSE
EMERGENCY
MANAGEMENT
CRISES
MANAGEMENT
Thresholds for CMT Situational
Guidance
Impact
on
People
Asset or
financial
impacts
Impact on
the
Environmen
t
Reputation
impacts or
public
concern
Notification
and
activation
required
Incident
Such as a
fire,
explosion,
equipment
malfunction,
security
incident
Minor
Injuries
Minor
<$50k
financial loss,
some damage
to property,
minimal
disruption to
services.
Issues of a
non-
continuous
nature and
minor impact
and
consequence
Isolated media
coverage. The
level of
reporting is
limited.
The ERT at
the site is
activated,
and the
Duty
Manager/E
MT Leader
is notified.
Emergency
a serious fire
or explosion,
bomb threat,
severe
weather or
seismic
activity
Major
Injuries
Major
$50-500k
financial loss,
some business
interruption,
Major
equipment
malfunction.
Issues of a
continuous
nature but
limited
impact and
Poses a threat
to residents in
the immediate
vicinity and/or
seriously
affects site
operations.
Potential for
media interest..
The EMT is
activated,
and the
CMT is
notified.
Action by
off-site
persons is
necessary.
Situational
Guidance
Impact on
People
Asset or
financial
impacts
Impact on
the
Environmen
t
Reputation
impacts or
public
concern
Notification
and
activation
required
Crisis
Such as a
major fire or
Explosion,
material
release,
severe
weather,
seismic
activity or
kidnap/hostag
e.
Permanent
disability or
fatalities
Extensive
>$500k
financial
loss, major
business
interruption.
Plant
catastrophe.
Issues of a
continuous
nature with
major long-
term impact
and
potentially
serious
consequence
s,
contaminatio
n of potable
water
source).
media
interest,
potential for
public
outrage,
potential for
loss of
regulatory
accreditation.
Likely to
affect areas
well beyond
site
boundaries
and/or site
operations.
The EMT and
CMT are
activated.
The situation
is not under
control.
Protective
actions by off-
site entities
are ongoing.
Thresholds for CMT
Crises Management Team
President
Gov. relations
Procurement
Mine Ops Legal HR IT
Finance
HSE
Log keeper
CRISIS CONTROL – ACTIONS BY CMT LEADER
• Develop and implement strategy to regain control of the
issues.
• Tailor the CMT with the most appropriate and available
managers. Allocate one member as log keeper.
• Send one member to fight for information from the EMT if
activated. Use one member to visually display facts.
• Make an early decision to activate the Government Affairs
Support Team and HR Support Team if required.
• Resist the tactical urge to become directly involved in the
EMT, if the crisis stems from an emergency. Work in team
sessions, typically 30-40 minutes.
• Use team timeouts, typically 20-30 minutes to directly engage
stakeholders by telephone or meetings. Timeouts become
longer when implementing crisis strategy.
• Use disciplined team updates, less than 5 minutes in duration
Find facts
Identify
issues
Prioritise Issues
Implement
Strategy
Updates CMT Process
Time Out Team
Sessions
CMT OPERATION
People Environ
ment Assets
Business
Continuity
Reputati
on Liability
STEP 1 - FIND THE FACTS & IDENTIFY THE KEY
STAKEHOLDERS
Establish what facts are known and what facts need to be
found or verified under the following headings:
CMT OPERATION
Business Continuity Reputation Liability
Extent of
involvement and
what assets or
ventures are
affected?
Financial impact?
Business threat or
direct interruption
of business?
How is the incident
or issue
developing?
Associated
constraints on other
assets or ventures?
Positive or
negative
perceptions?
Media led rumour
or speculation?
Current level of
enquiry, or
interest by local,
national and
international
media?
Extent of
liabilities, claims
or penalties?
Criminal liability?
Major third party
liability?
Significant
penalty or fine?
Financial impact
and
compensation?
Insurers?
STEP 2 - IDENTIFY ISSUES
CMT OPERATION STEP 3 - BRAINSTORM AND PRIORITISE THE KEY ISSUES
Business Continuity Reputation Liability
Resumption of
operations?
Impact on
customers?
Impact on
suppliers?
Own equipment
and property?
Local, national
and international
regulatory
impacts?
Overall effect
likely on the
industry?
Current and
likely perception
of the incident?
Government
involvement?
Likely effects on
reputation?
Likely impacts
on or response
from pressure
groups and
agencies?
Other industry
companies?
Clarify legal
relationships?
Review the
composition of
investigations and
use of an
independent third
party?
Publicise public
guidelines for
compensation as
early as possible
Insurance?
Loss of revenue?
Legal issues?
CMT OPERATION
STEP 4 - DEVELOP AND IMPLEMENT CRISIS
STRATEGY
• Exploit opportunities. Make direct and indirect contact
with stakeholders to regain control of the issues and the
BGC commercial position.
• Continuously repeat the process until BGC can return
to line management and normal daily routine.
“One of the true tests of leadership is the
ability to recognize a problem before it
becomes an emergency.”