Emergency Planning: Are You Ready?
Vol 2 Issue 1- Jan 2006

By Barbara Semeniuk

The devastation in the wake of Hurricane Katrina was a tragic example of unpreparedness. From advance warning and preparation to evacuation and rescue efforts, no one was ready for what was to come. This was a huge wake-up call for the government, the nation and the world.

It was also a wake-up call for industry. Emergencies can happen anywhere and at any time, and companies need to have the proper planning in place to confront the potential dangers.

Crisis management is the process of planning, organizing, leading and controlling assets and activities in the critical period immediately before, during and after the actual or impending catastrophe. The ultimate goal is to reduce the loss of resources essential to the organization's eventual full recovery.

Because crisis management encompasses all aspects of a business (senior management, health and safety, operations, media relations and legal), extensive and thorough communication between the affected groups is crucial. Unfortunately, many companies fall short in their efforts because they fail to develop and foster effective communication channels between departments and functional areas–channels crucial to successful response in the event of a crisis.

One of the major weaknesses in managing any type of crisis is lack of planning. An effective emergency plan encompasses developing and communicating clear procedures for responding appropriately to an emergency – plans designed to keep a business functioning after the crisis passes.

Besides planning for the unthinkable and mapping out what to do when a crisis occurs, an emergency response plan can also ensure that workers respond in the appropriate manner – saving time, money, resources and ultimately, lives. An effective response plan should encompass the following elements:

Hazard Identification
The first and fundamental question to ask is: "What constitutes a crisis for our operations?" A crisis for one company, or one division of a company, may not be a crisis for another. Geography, weather and climate can all be important determinants. For example, while hurricanes may be a real concern in Louisiana; in southern Ontario they're not.

The overall responsibility for the plan should be assigned to one "go-to" person who will manage the entire process. Their job is to coordinate the appropriate personnel and resources, and address issues in a systematic and thorough fashion. Because the process involves staff from all levels of a company, the emergency plan coordinator must have the appropriate authority to ensure success.

Only identified hazards can be controlled, and one of the coordinator's first responsibilities is to form a team that will assess the hazards facing the organization and consider all aspects and possible outcomes. This team should be representative of all functional areas of the company, including senior management, human resources, health and safety, security, operations, finance, information technology services and legal. Outside resources such as insurance brokers/carriers and external safety professionals should also be included, as well as government, police, fire departments, community groups and other related public agencies.

It's the planning team's responsibility to identify all critical business functions, ranging from a detailed review of business operations and processes, suppliers and customers, product lifecycles and technology systems to branding, company reputation, market position and human capital. Some common risks/hazards areas are:
  • Human: death/sudden departure of the founder or key manager, union strike, escalating workplace conflict
  • Environmental: fire, flood, severe weather
  • Economic: stock market/share price declines, recession
  • Other: product defects, industrial accidents, product tampering, computer viruses

Hazard Assessment
Once the hazards are identified, they must be assessed and quantified by ranking them according to severity, probability and exposure. This risk matrix can also be expanded to identify relative cost to control the risk. Once the hazards are assessed using the matrix, business decisions can be made regarding control measures that mitigate the risks involved and the necessary steps to take in case of occurrence.

The initial hazard assessment process should include an evaluation of the measures already in place to control risk. For example, a building with a properly designed and maintained sprinkler system might be placed in a low to moderate category, whereas the risk for a similar building with no sprinkler system in place would be rated as high. Potential downtime for each critical business department and interdependencies amongst business departments need to be considered, as do critical points during production in order to properly assess the hazards and to establish priorities for recovery efforts.

Consider the consequences if one machine breaks down. Would this have a high probability of shutting down the entire process, resulting in severe economic damage? Consider your business' computer and phone capability, the ability to collect accounts receivable and/or manufacture a product. If high hazards are determined, they should be controlled as much as possible prior to the incident, which would reduce the level of risk inherent in your operation. A crisis that does not occur as a result of proper preventative measures can save your organization considerable time and money.

Planning and Preparation
The crisis management plan should be in writing and address each issue identified during the hazard identification and assessment process. It must also clearly define roles and responsibilities to prevent chaos when an actual emergency occurs. Proper media response is also an important consideration. Other items to consider in an emergency response plan are:
  • Incident command system
  • Evacuation procedures
  • Emergency operations centres
  • Emergency response team members’ roles and responsibilities
  • Diagramming and posting of access roads, buildings, surrounding structures, utility lines, gas shut off points and/or valves
  • Control measures and response actions required following an event
  • Communication procedures before, during and after a crisis
  • Location of all emergency response equipment and supplies
  • Search and rescue procedures.

Psychological factors such as evaluations for crisis team members and/or counseling for employees following a crisis should also be taken into account.

Once plans are developed, initial and refresher training should be implemented. Written plans, particularly contact names and phone numbers, need to be reviewed and confirmed. After plans are prepared and training has been conducted, the hazard identification and assessment phases should be revisited regularly to account for any business changes.

Mobilization and Response
When a crisis occurs or there is warning of a pending incident, personnel need to be mobilized in order to ensure minimum business disruption. Quick response based on the company's emergency plan as well as the flexibility to respond to unplanned situations that may occur during a crisis situation play a key role in the success of the emergency plan. Succession planning is essential if key personnel are not available, and a procedure to establish alternate worksites is important if a location is rendered unusable or hazardous.

Recovery
Once a business has responded to the immediate crisis, the next step is to restore normal operations. Recovery priorities and plans for varying lengths of downtime must be considered. Maintaining regulatory compliance during recovery is also important to address.

The recovery phase is often completed without assistance from public agencies such as fire and police departments. This must be a factor in developing the appropriate response. Restoring critical functions at the crisis site or alternate location is a first step; providing solutions to any lingering psychological affects on the staff is another. Insurance policies can pay for direct damage to buildings or equipment, and workers compensation can cover injuries to personnel.

Plan Testing
Once a plan has been established, exercises should be conducted to ensure that the plan is working well and that everyone knows how to respond. Simulations can be done to ensure all personnel will respond well in a crisis. When a plan is tested either during a simulation or real-life crisis, deficiencies can be identified and corrective actions taken.


Crisis management planning is complex and requires a multidisciplinary approach. Proper planning and effective response can significantly minimize the impact of a crisis. Remember, next time it could be you.


Barbara Semeniuk is a health and safety consultant and principal of Purcell Enterprises.

 
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