The Time Is NOW

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The Time Is NOW!
Date
Is Your Company Crisis Ready?
Name Location
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Crises Are Striking More Often and Doing More
Damage, Faster.
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Every Company is at Risk
Large companies will face a crisis every 4 - 5
years.
A crisis is any unexpected event that threatens
a severe negative impact to an organizations
financial results, brand, reputation or
relationships with employees, customers or
suppliers.
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A High-Stakes Test of Leadership
The Impact on Shareholder Value

• Since the average CEOs tenure is6 years, each
  will likely face a crisis.
• The ability to manage a crisis is a vital new
  standard of good corporate governance because it
  has
• Major immediate impact on shareholder value
• Long term impact on reputation/brand and
  therefore market share

Cumulative Abnormal Returns () i.e., change in
market cap adjusted for market movement
25 50 75 100 125 150 175 200 225 250
Trading Days After the Event
Source The Impact of Catastrophes on
Shareholder Value, Rory F. Knight Deborah J.
Pretty, Templeton College, University of Oxford,
p. 3.
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The New Realities Sink In

• Post September 11 Findings
• 81 of Executives say their companies are
  vulnerable to serious business disruption due to
  a crisis. (KPMG, 2002)
• BUT
• Nearly 50 of companies have no crisis management
  plans in place at this time. (KPMG, 2002/Logical
  Management Systems, 2002)
• Many firms - e.g. 50 of Global 2000 - have not
  fully tested the crisis management plans that do
  exist. (Gartner, 2002)
• 62 of companies conduct NO vulnerability audits
  to determine the nature of their potential
  exposures. (Logical Management Systems, 2002)

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What is Crisis ReadinessSM?
Crisis ReadinessSM means knowing what to do and
how to do it with a team that is practiced and
ready - so you can be proactive in managing
potential threats.
Heres how it works...
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The Proven Value of Crisis ReadinessSM
IMPACT
Without Crisis Readiness
It reduces the total impact and speeds recovery
from all kinds of corporate crises.
Crisis Event
Damage to Financial Results, Reputationand Key
Relationships
CRISISREADINESSSM
With Crisis Readiness
TIME
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Crisis ReadinessSM Comprehensive Flexible
CRISIS READINESSSM
Reduces both the frequency and severity of crises
by addressing each phase of a potential lifecycle
and adapting as events unfold.
Deterrence
Crisis Operations
Recovery Analysis
Intervention
PotentialCrisis Event
IMPACT AVERTEDOR MINIMIZED
STRATEGIC TACTICALSUPPORT
Threshold
MeasureImpact
Signal
Lessons Learned
Issue
Threshold
Threshold
Signal
Strategy Revisions
Signal
TIME
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Crisis ReadinessSM Integrates Key Disciplines
Leverages and streamlines many vital
capabilities, including existing
plans/operations, into one cohesive program.
CRISIS MANAGEMENT
Crisis Communications (Media, Employees, Investors
Human Impact (Employees, Family, Customer)
Early Warning Systems (Signal Detection)
Security Management (Cyber, Physical, Personal)
Product Issues (Recall, Integrity, Withdrawl)
Emergency Management (Policies, Procedures)
Business Continuity (Systems, Processes)
Others
TIME
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Crisis ReadinessSM Across The Organization
CRISIS READINESSSM
CRISIS READINESSSM
Helps you meet performance goals by gaining
top-level support and spanning internal divisions
within your firm.
Executive
Corporate Management
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We Can Help Your Company Achieve Crisis
ReadinessSM
Marsh is the only organization with the
expertise, experience and resources needed to
deliver on the promise of Crisis Readiness.SM
Heres how we do it...
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Marshs Crisis Readiness Services
Comprehensive Process Addresses Variety of
Critical Issues
Collaborating and Integrating to Provide Complete
Solutions
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Marshs Crisis Readiness Services
Comprehensive Process Addresses Variety of
Critical Issues
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Why Do Clients Need Crisis Consulting?

• To validate and confirm current levels of Crisis
  ReadinessSM
• Provide objective, outside assessment by
  recognized experts
• Safeguard or upgrade corporate reputation and
  brand(s)
• To create enhanced Crisis ReadinessSM
  capabilities
• Prevent, mitigate, manage and recover from
  potential crises
• Integrate and span all functional/organizational
  silos
• Establish annual plans for Readiness
  maintenance/improvement
• To strengthen Corporate Governance practices
• Comply with new government regulations (e.g.
  Sarbanes-Oxley)
• Promote investor confidence and meet DO
  responsibilities

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What is Our Competitive Advantage?

• Companies buy Crisis Consulting from Marsh
  because our team is uniquely qualified to meet
  their needs. Other consulting firms cannot match
  our...
• Experience - Senior positions in state and
  federal government agencies, the military,
  international organizations, and various
  industries including healthcare, pharmaceutical,
  chemical, telecom, and information technology -
  as well as other consulting firms.
• Expertise - World-class crisis management
  authorities who are expert commentators to the
  media, published authors, Ph.Ds and MBAs, and
  certified specialists.
• Global Resources - As part of Marsh, the Worlds
  1 Risk Specialist.

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The Time Is NOW !Is Your Company Crisis Ready?

• Sometimes you can see trouble ahead
• sometimes you cant.

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Case Study Biotech Scenario

• As predicted, the U.S. has joined the European
  Union debate on genetically modified organisms
  (GMO) being used in food production.
• News of continued attacks from environmental
  activist groups on genetically modified crop test
  sites in the UK and other European countries have
  reached the U.S.
• It is estimated that crops worth millions of
  dollars have been burned by environmental
  activists based on environmental and health
  concerns in the U.S. and Europe.

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Case Study Biotech Scenario Questions

• 1. How would you want to position the company
  (Royal Chocolate) with the media and public?
• 2. Should a relationship be established with
  Bioron? When? How?
• 3. What action sdo you want to see taken at the
  facility?
• 4. What are your priorities in the wake of this
  incident?
• 5. What decisions must be made in the first 12
  hours of the incident?
• For Royal Chocolate?
• For Bioron?

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For More Information About Marshs Crisis
Consulting Services Please Contact Stephen M.
Nash 317-261-9371 Stephen.M.Nash_at_Marsh.com