Catastrophic IncidentsNeglected Aspects of Managing a Crisis

Sumit DharSenior Director & Head,Information Security & Risk ManagementEdgeVerve (Infosys)

Tony Dungy transformed…

Yet, it took a catastrophic incident to help him win his first

Super Bowl

…the worst team(s) in NFL

One meaning Dangerthe other meaning Opportunity

The Chinese got it right……represented crisis with two characters

Source: The Impact of Catastrophes on Shareholder Value (Rory F. Knight & Deborah J. Pretty)

The Oxford Executive Research Briefings

Does managing crisis well……really make any difference?

Trial by fire: Two companies……same crisis, different results!

Advance preparation and robust planning ensures proper

crisis response

Build a risk management culture: Anticipate | Prevent | Prepare

Ineffective risk mgmt culture……resulted in the largest oil spill!

Extraordinary crisis……outstanding response!

Strong leadership with swift & decisive action

How a tyre fiasco……destroyed a 100 year relation!

Focus on the core issue;avoid blame game

Loss of life due to a……fire at King’s Cross Station

Poorly defined roles and responsibilities for crisis management

Improper response to a crisis……impacts the entire food industry!

Failure to communicate leadsto rumors, misrepresentation & poison

Summary……or how to tie it all together!

↘ Advance preparation: Nokia Example

↘ Proper Culture: BP Example

↘ Act decisively: Tylenol Example

↘ Avoid Blame Game: Ford – Firestone Example

↘ Everyone’s responsibility: London Underground Example

↘ Proper Communication: Monsanto Example

ReferencesThe Resilient Enterprise by Yossi Sheffi (MIT Press)

Risk Issues and Crisis Management by Michael Regester and Judy Larkin

The Power of Habit by Charles Duhigg The Impact of Catastrophes on Shareholder Value by Rory Knight

Feeding Frenzy by Jon Harmon Managing Risks – A New FrameworkHarvard Business Review

A Bitter Pill by Joy Bergmann Managing a Crisis you tried to PreventHarvard Business Review

Managing Crises before they Happen by Ian Mitroff

How to avoid CatastropheHarvard Business Review

Sumit DharConnect: in.linkedin.com/in/sumitdhar