Crisis Management & Disaster Planning

1. Crisis Management & Disaster Planning Eric R. Paulsen, Risk Manager www.pcocinsurance.com

2. What is Crisis Management? • Webster’s Definition: “Crisis, a turning point, as in a sequence of events, for better or worse.” • Therefore, crisis management is the act or process of managing a crisis to prevent (if possible) and reduce the impact of catastrophic losses to the organization

3. September 11, 2001 Opened a lot of eyes

4. Communication failed, Congress told Emergency Preparedness / Crisis Management has become a headline issue • Terrorist attacks • NYC: September 11, 2001 WTC attacks • Madrid: March 11, 2004 train bombings • London: July 8, 2005 subway bombings • Blackouts • 2001 Gov Gray Davis Rolling Blackouts • Northeastern North America: August 14, 2003 • Los Angeles: September 12, 2005 • Urban Fires • Almost every year in California • Urban Mudslides • Almost every year in California • Earthquakes • 89 Loma Prieta and 94 Northridge Earthquake • Incidental Events (Tempest in a tea cup) • 1992 Rodney King Riots • Pandemic Influenza • Significant media coverage began in 2005

6. Imagine you or your employee is in this vehicle? Julian McCormick’s Honda Civic

7. Bowie Student Trapped 8 Days Details Pain, Survival Tactics By Avis Thomas-LesterWashington Post Staff WriterTuesday, September 11, 2007; A01 As Julian McCormick recalls it, he lay in and out of consciousness for eight days and seven nights, hot, sticky and bloody with not a clue as to what day it was or how he ended up trapped in his overturned car at the bottom of a steep embankment in Prince George's County. To survive, he ate a fish he caught with his hands and used his high-top sneaker to drink water from the creek, the 18-year-old Bowie State University student told his parents. When he finally was able to muster the strength, he cut his seat belt using a small knife he had in his car, forced his door open and then dragged himself by his elbows, his body racked with pain, 30 feet up to the shoulder of the road hoping that someone would see him and rescue him. Someone did. "We've got him back, and we are so glad!" his ecstatic mother said yesterday in an interview. "He's doing great." As their son recovered at Washington Hospital Center yesterday, Peggy and James McCormick tried to piece together the circumstances of their son's disappearance and recovery and questioned why police had not done more to search for him. They said doctors have told them that their son's injuries are consistent with someone who had been exposed to the elements for days without food or water. But what had happened to the Laurel teenager? Why did his Honda Civic leave the roadway and land in a creek bed that runs under the road where he was found, near the Beltsville Agricultural Research Center? And why did police wait days to look for McCormick and then conduct just a 1 1/2 -hour search -- at night, when visibility was limited? Sgt. Robert Lachance of the U.S. Park Police, which is investigating the accident because it occurred on federal land, said investigators were waiting to interview McCormick, who was sedated yesterday. He was in fair condition and being treated for malnutrition, dehydration, abrasions and an injured hip. "We really don't want to ask him too much about what happened," James McCormick said. "The doctors predict that he will be 100 percent healed. . . . We're just trying to be there for him." Mark Brady, a spokesman for Prince George's County fire and rescue, said McCormick's injuries were similar to those of a person who had been trapped in a car. The McCormicks reported their son missing Sept. 1, a few hours after he left a band practice at Bowie State on his way to the University of Maryland at College Park, where he was meeting his girlfriend but never showed. His parents and friends posted fliers and searched for him around Bowie State. His girlfriend, Flor Orellana-Diaz, called his cellphone 127 times. Police categorized McCormick as a "non-critical missing person" because there were no signs of foul play. They conducted an aerial search for him Friday night from 9 to 10:30 -- well after dark, according to the helicopter squad's aviation log. He was discovered by a motorist Saturday evening. "I don't think it was a priority," Peggy McCormick said. Added James McCormick: "He's been there the whole time, less than one mile from home." According to his parents, Julian McCormick was on Powder Mill Road near the on-ramp to the Baltimore-Washington Parkway when he lost control of his car. It ran off the road and down the steep ravine. He told his parents that he was not sure how long he was unconscious in the car. He woke to find his seat belt strapped across his chest and his breathing labored. After he cut the seat belt, his parents said, he waited to be rescued. James McCormick said it took more than a week for his son to get his driver's-side door open and get out. The McCormicks said their son was able to keep time on his watch, but the days got away from him and he could not use his cellphone because its battery was dead. The McCormicks also said their son does not recall how the accident occurred. Julian McCormick told them the car was upside down in the ravine and that at first, he couldn't get out. His mother said he told her that he was able to get to the creek for some water. "He told me, 'Thank God for these size 13 shoes, Mom, because I was able to drink out of them.' " Her son managed to tell her that he was very hungry so he grabbed a fish and ate it. He felt he needed to eat to survive, his mother said. "He said: 'Mom, I just knew I had to see you again. Mom, I was so afraid that I was going to die,' " she recounted. It wasn't until days after he landed in the ravine, Peggy McCormick said, that her son was able to drag himself up to the road. He doesn't know how long it took to climb the 30-foot embankment. His timing was good, though: Just before 6 p.m. Saturday, Leigh Ann Hess, who was riding in a car with her mother, noticed the soaking wet and muddy teenager lying on the side of the road, wiggling his fingers in an attempt to flag down help. She jumped out to help him, and about a half-dozen other drivers eventually stopped. Rescue workers arrived within minutes. He was able to give his name and address but didn't know what day it was. McCormick's survival story, remarkable as it is, is similar to others told across the country: the 83-year-old Florida woman who survived three days while her car was suspended in mangrove trees in a swamp, an elderly San Jose couple who were in a steep ravine for four days before they were rescued. Doctors say survival depends on many factors, including age, the weather and access to water. People react to dehydration differently, depending on their health and physical condition, and usually they can survive days, even weeks, without food, said Eric Glasser, assistant chief of service for the emergency department at Georgetown University Hospital. Family members said yesterday that they did not know when Julian McCormick would be released from the hospital. "He's got no breaks or fractures, no internal injuries," his mother said. "If something had happened and he'd had internal injuries, they would have found the car, but he would have been gone. God was with him." Staff writer Jenna Johnson and staff researcher Meg Smith contributed to this report.

9. Phase of a CrisisPre-loss and loss Threat  Warning  Impact Threat =Nothing has happened, but you have a reasonable probability that it could happen. Warning = The occurrence is imminent Impact =When the event is occurring

10. 5 Steps to Crisis Management • Planning • Preparedness • Prevention • Response • Recovery

11. The Cycle of Disaster Management Risk management increases coping capacity, builds resilience. proactive reactive Crisis management treats the symptoms, not the causes.

12. 1) Planning: Pre-Crisis/Disaster • Organizational Team • Structure: upper management, coordinators and response team. • Composition: all departments • Characteristics: need people with expertise, authority to implement plans, physical and psychological abilities, leadership…

13. 1) Planning: Pre-Crisis/Disaster • First activity is pre-planning: brainstorm, consider all possible disasters (use outside resources) and then rank the disasters. • Consider the source of the disaster perils: Source = natural, human, economic Time = length of warning, seasons, business peaks and valleys Controls = Pre-loss/Pre-event and Post-loss/Post-event

14. 1) Planning: Pre-Crisis Planning • List potential crisis/emergencies/disasters • Previously experienced in the pest control industry • Previously experienced in your community/state • Consider – historical, geographical, technological, human error, physical failure, economic, almost everything.

15. Severe Significant Slight Almost Nil Slight Moderate Definite 1) Planning: Correlation Chart Severity Frequency

16. 1) Planning: Think about critical products, services, operations • Operations, equipment, personnel • Electricity, water, gas, telecommunications • In-house products and services • Products, and services supplied by others. (subcontractors, vendors)

17. Fumigation Death Employee runs over a child Employee is killed by electrocution, auto accident, fall or other means. Key Employee scandal Fire at your facility Spill Civil Unrest (Rodney King Riots) Death of the owner/QM Earthquake Fire Terrorism Flood Power outage – can run fans or aerate fumigation Change in economy Pandemic Fire, flood or other catastrophe at clients property. You may have some responsibility for response and recovery. 1) Planning: Some Potential Crisis

18. Severe Significant Slight Almost Nil Slight Moderate Definite 1) Planning: Correlation Chart Severity Death of Owner Power outage impact to fume embezzlement Tech quits with no notice Frequency

19. 1) Planning: Assessing your current situation • Risk management plan • Employee handbooks • Phone trees (contacting employees & their families) • Insurance programs • Hazmat plans • Safety manuals • Security procedures – how do you identify your employees to your customers or public • Contracts – what are your obligations to your customers • Vendors, - do you have back ups. • Fire protection plans • Evacuation plans • Communication plans

20. 2) Preparing • Establishing the risks, your plan, your procedures, documentation, developing and gathering resources, training, drills, etc.

21. 2) Preparing: Available Resources • FEMA • State Office of Emergency Services • Local OES / CERT and others • Telephone Company • American Red Cross • Fire Department • Etc….

22. 2) Preparing: Resource Requirements • Management commitment • $$$ • Supplies, water, first-aid, fire extinguishers, gloves, spill kits, alternative communications • Alternate premises • Equipment • More…

23. 2) Preparing: Communications Crisis Information Kit • Lists of team members, (org chart, consider backups) • Phone numbers • Maps • Evacuation routes • Emergency procedures • Information outpost • External & Internal Comms • External: informing the public/customers what they can or cannot expect from you in a time of disaster. • Internal – informing, educating and training your employees in processes and procedures.

24. 2) Preparing: Organize Your Team • Educate the team so they understand what each peril is and what precedes the peril. (The must understand each peril) • Train all employees on reporting, evacuations, and how to use emergency equipment and supplies. • Drill the team • Develop and review procedures • Find problems with the plan through drills.

25. Identification Procedures Inspections Safeguarding Training Evacuations Purchasing Communications Education 2) Preparing: Essential Components

26. 3) Preventing • Each identified peril or crisis should have an identified counter measure for both loss prevention and for loss reduction. • Are there emergency response and evacuation procedures in place? • What fire prevention and control measures are in place? • What precautions are taken to prevent heat stroke? • What precautions are taken if your area is prone to floods or landslides? • What backup power is needed and available?

27. Peril/Crisis Pre-Loss Post Loss Power Outage Install UPS Generators for fumigations Shut down computers Ensure you have enough fuel Earthquake Secure shelves, filing cabinets to wall Secure premises, shut off gas. CEO Scandal Ensure proper behavior, codes of ethics, background checks Honesty, and good public relations with media and customers Death of QM Health of QM – have a back up Operator in place 3) Prevention – Organize Control Measures by Pre and Post Loss

28. 4) Response • Communication Outpost/control center • Ensure outpost is well stocked with all necessary supplies, equipment and information technology • Ensure an effective well practices communication plan. • Initiate damage assessment – don’t forget details • Initiate coordination efforts

29. 4) Response • Initiate communication efforts (TELL THE TRUTH) • Financial expenditures • Employee/family considerations • PGT Windows in Florida – hurricane Andrew • Toll free phone # - plane with banner • Campsites with facilities • Happy employees & customers • Great PR

30. 5) Recovery • Activities to be coordinated pursuant to your plan. • Follow priorities list (from your plan) • Ensure safety before resuming operations • Review recovery timelines for each department

31. 5) Recovery • Initiate Salvage efforts • Initiate communications with insurers and customers • Document damage • Security to protect against looting • Control access to site

32. Some Examples for PCOsAnd some key related California laws related to your emergency response / crisis management plan.

33. Death of a QM/Owner Operator • You need to plan for such a possibility • Have a detailed plan for your spouse/heirs • Get a back up Operator – have your spouse get licensed.

34. Death of a QM/Owner Operator • 8506. (c) In the event of death of a licensee, the executor or administrator of the deceased person may obtain from the board written authorization for such executor or administrator to conduct the business of such deceased licensee for a period not to exceed one year after the date of death for the purpose of winding up or disposing of the structural pest control business of the deceased licensee; but such authorization shall not entitle such executor or administrator to solicit, engage in, or undertake any structural pest control work not already contracted for by such deceased licensee unless a properly classified and licensed operator is employed to manage, supervise, and direct the business.

35. Emergency Action Plans • Subchapter 7. General Industry Safety OrdersGroup 1. General Physical Conditions and Structures OrdersArticle 2. Standard Specifications • §3220. Emergency Action Plan.

36. §3220. Emergency Action Plan. • (a) Scope and Application. This section applies to all emergency action plans. The emergency action plan shall be in writing, except as provided in the last sentence of subsection (e)(3) of this section, and shall cover those designated actions employers and employees must take to ensure employee safety from fire and other emergencies.

37. §3220. Emergency Action Plan. - CONTINUED • (b) Elements. The following elements, at a minimum, shall be included in the plan: • (1) Emergency escape procedures and emergency escape route assignments; • (2) Procedures to be followed by employees who remain to operate critical plant operations before they evacuate; • (3) Procedures to account for all employees after emergency evacuation has been completed; • (4) Rescue and medical duties for those employees who are to perform them; • (5) The preferred means of reporting fires and other emergencies; and • (6) Names or regular job titles of persons or departments who can be contacted for further information or explanation of duties under the plan.

38. §3220. Emergency Action Plan. - CONTINUED • (c) Alarm System. • (1) The employer shall establish an employee alarm system which complies with Article 165. • (2) If the employee alarm system is used for alerting fire brigade members, or for other purposes, a distinctive signal for each purpose shall be used.

39. §3220. Emergency Action Plan. - CONTINUED • (d) Evacuation. The employer shall establish in the emergency action plan the types of evacuation to be used in emergency circumstances.

40. §3220. Emergency Action Plan. - CONTINUED (e) Training. (1) Before implementing the emergency action plan, the employer shall designate and train a sufficient number of persons to assist in the safe and orderly emergency evacuation of employees. (2) The employer shall advise each employee of his/her responsibility under the plan at the following times:

41. §3220. Emergency Action Plan. - CONTINUED (A) Initially when the plan is developed, (B) Whenever the employee's responsibilities or designated actions under the plan change, and (C) Whenever the plan is changed. (3) The employer shall review with each employee upon initial assignment those parts of the plan which the employee must know to protect the employee in the event of an emergency. The written plan shall be kept at the workplace and made available for employee review. For those employers with 10 or fewer employees the plan may be communicated orally to employees and the employer need not maintain a written plan.

42. Reporting Deaths & Serious Injuries to the SPCB • §1970.4  (b) Any death or serious injury relating to pesticide application or use, whether to a worker or member of the public, shall be reported to the nearest Structural Pest Control Board office immediately. (§1970.4 Pesticide Disclosure Requirement.)

43. Other Rules • CDPR mandated Heat Safety Training • Injury & Illness Prevention Program (IIPP) • Defensive Driving as part of your IIPP

44. This is but a QUICK introduction • See www.oes.ca.gov for lots of information • National Fire Protection Act NFPA 1600 Standards.