Risk Management Cycle

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1

• Risk Management Cycle

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Contingency and continuity plan

• Objectives, stakeholders and responsibilities
• Review of prevention measures and residual risks
• Monitoring mechanisms
• Warning and mobilization procedures
• Structure of decision-making centres
• Roles and responsibilities
• Physical location and organization of centres
• Specific procedures for intervention, recovery
  and responsibilities
• Demobilization procedures
• Internal and external communications

3
Training program

• Identify needs
• Target personnel and audience
• Knowledge and skills required
• Objectives depending on categories of
  participants
• Plan and organize
• Prepare activities (presentations, workshops,
  mentoring, etc.)
• Get schedule approved and offer activities
• Evaluate and draft report
• Evaluate process and results
• Take notes and make a report

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Example of Hydro-Québec
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Exercise program

• Types of exercise
• Case study
• Appropriation by stakeholders
• Training exercise
• Training of stakeholders in one part of plan
• Table exercise
• Problem resolution in an informal setting
• Operational exercise
• Realistic activation of an emergency centre
• General exercise
• Several functions and deployment

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Exercise program (contd)

• Identify needs
• List exercises conducted for the specified period
• Get program approved
• Plan and prepare exercises
• Objectives of exercises, type, dates
• Persons responsible and participants
• Required resources
• Evaluate and draft report
• Observations and performance
• Improvements required and recommendations
• Follow up recommendations

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Evaluation and/or audits

• Internal audit
• At the request of senior management exceptional
  in nature
• Internal audit for improvement purposes(1)
• Commitment of senior management and leadership
• Awareness and appropriation by employees
• Structuring of program
• Availability and implementation of measures
  (metrics)
• Allocation of permanent resources
• Coordination with outside parties
• (1) Categories suggested by Virtual Corporation

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1

• Risk Management Cycle

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1
Monitoring

• Identify the procedures or facilities requiring
  monitoring
• Identify monitoring systems and indicators
• Identify persons responsible for monitoring
• Produce clear communication diagrams and tools
• Integrate diagrams and coordinates into plans

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Summary of input in management cycle
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1

• Risk Management Cycle

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Leadership must

• Ensure risks are taken into account and
  prevention and mitigation measures are
  implemented preparation
• Ensure the quick and effective mobilization of
  intervention structure to mitigate the effects of
  the events and re-establish critical operations
• Ensure the liaison between internal and external
  resources and partners
• Ensure internal and external communications

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Leadership and emergency response
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Sustained leadership
Rigorous analysis of events
Follow-up to recommendations
Sound management of risks
Flexibility and tenacity
Continuous improvement
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Responsibilities of managers of facilities

• Be aware of the list of risks and vulnerabilities
  in their facilities and keep it up-to-date
• Prepare an effective contingency plan and keep it
  up-to-date
• Be ready to act at all times
• Learn lessons and ensure corrective action is
  taken whenever exceptional events occur

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Leadership and intervention

• Establish a short-term management method
• A crisis is by definition a short-term situation
• The way employees are managed must focus on the
  short-term
• Objectives must be short-term, specific,
  realistic and measurable
• Work standards and practices will be modified

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Leadership and intervention (contd)

• Quickly identify those who are needed and those
  who can help you
• internally
• externally
• Everyone wants to help but not everyone is
  helpful
• Never underestimate the importance of logistical
  aspects (housing, meals, transportation) and even
  support for families of employees requisitioned

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Communications

• Develop a program
• Examine the situation in terms of communication
  needs
• Determine the situations requiring that
  communications be structured
• Target audiences and objectives
• Determine the involvement of partners
• Implement the program
• Define and assign roles for internal and external
  parties
• Get plan approved and applied
• Evaluate the effectiveness of strategies and
  actions

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Communications and intervention

• Release information quickly, directly and
  transparently
• Essential for maintaining trust and mobilization
  of internal parties and crucial in terms of how
  the public will react
• Essential for coordination purposes with partners
• As soon as the situation is assessed, the public
  must be made aware of action plans and results

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Communications in an emergency situation

• Theory of the 5 Rs (1)
• Regret
• Responsibility
• Recovery
• Diagnosis, strategy, deadlines, regular follow
  ups
• Reform
• Reparation
• (1) Jim Stanton, WCDM, June 26, 2001

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Examples of Events
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1989 Magnetic Storm
March 13, 1989 The Earths magnetic field
changes suddenly and intensely Protective devices
trigger the voltage control equipment
March 12, 1989 First variations in voltage are
observed on the grid
March 10, 1989 A strong solar wind leaves the sun
and heads toward Earth
In less than a minute General power outage in
Québec (lasting over 9 hours)
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Improvements

• Recalibration of protective equipment
• Implementation of two warning systems
• forecast
• real time
• Changes in operating procedures in the event of
  a geomagnetic disturbance alert
• Installation of series compensators

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1996 Saguenay Flood

• 279.4 mm of rain
• in 51 hours

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Improvements

• Kénogami watershed flood control program
• Pre-flood water level re-established

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Results from improvements
Maximum evacuation capacity Water flow reached
July 20, 1996 Maximum evacuation capacity after
rebuilding
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January 1998 Ice Storm

• 3 successive ice storms
• Accumulation of ice on ground 100 mm
• Over 1,200,00 customers without electricity
• Damage estimated at 3 billion
• 1.9 drop in GDP in January 1998

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Impacts of Ice Storm on equipment

• 3,000 km of lines damaged
• 16,000 wood poles destroyed
• 3,000 transport network
• structures battered
• 1,000 steel towers
• damaged
• 4,000 transformers
• out-of-commission

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Improvements following Ice Storm

• Looping of transport network
• Reinforcement of distribution network
• Preparation of corporate contingency plan
• Formal coordination with external bodies

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Wind storm in December 2000

• Sustained winds of 100 km/h and gusts of159 km/h
  in the Saguenay region
• Impacts of the storm
• Several branches and pieces of debris damaged
  power distribution lines
• High winds damaged the transport network
• 180,000 customers without electricity

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Improvements noted following the wind storm

• Confirmed effectiveness of coordination process
  with external interested parties
• Confirmed efficiency of the connection
  forecasting system
• Review underway of certain communication
  procedures between the various emergency
  preparedness cells activated

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Part 3Application to the Risk of a Pandemic at
Hydro-Québec
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Preparation triggered by

• Management and most managers have been convinced
  that
• The threat is real and cannot be eliminated
  (knowledge of threat)
• The events would have an impact on essential
  services (impact assessment)
• The risk is such that it justifies immediate
  action (risk assessment)

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Inform decision makers

• Accurate data on risks
• DECISION MAKERS MUST BE AWARE OF
• Nature of threat
• Transmission means
• Consequences
• Prevention means
• Uncertainties

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Purpose of RB-HQ contingency plan

• Ensure that enough workers are available to
  continue supplying the electricity required in
  this situation
• Provide the healthiest possible work environment
  to Hydro-Québec employees

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Impacts of a pandemic

• According to forecasts by experts, the mortality
  rate would be very low (0.32) but many people
  would be sick (35 infected)
• Almost all sick persons will get better and
  develop protective antibodies
• They will be able to resume their normal
  activities without running the risk of
  contracting the infection again
• A pandemic usually lasts from 6 to 8 weeks

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Impacts of a pandemic

• At the peak of the pandemic, at least 1500 new
  workers will be affected every week
• Some will miss over a week of work
• Increased absenteeism due to sickness in their
  families

• Be prepared for a high absenteeism rate that may
  specifically affect certain groups

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Intervention possibilities

• They are limited to restricting contact between
  at-risk individuals and healthy individuals
• Are increasingly restrictive as the alert level
  rises
• Can vary with further knowledge on the new virus
• Considering they are complex to implement, they
  must be planned well before they are applied.

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Pandemic plan measures(1)

• Travellers
• Triage
• Limiting circulation and confining persons
• Movement of teams
• Confinement
• Additional supply and maintenance
• (1) Excluding medical intervention

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Monitoring of travellers

• It is possible to bring back a virus from a trip
  to an at-risk country
• An Healthy Travelling intranet site helps
  identify risks and suggests precautions to take
  when travelling
• In the event of a high level alert, a health
  warning will be issued and specify what workers
  need to do upon return from the countries in
  question
• May lead to certain employees being excluded from
  work for prevention purposes

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Triage

• Activity that makes it possible to identify and
  restrict access to any at-risk individual
• Type of triage depends on occupants
• Triage personnel must be protected according to
  recommendations of public health experts
• May lead to certain employees being excluded from
  work for prevention purposes

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Respiratory etiquette
If cough AND T 38C or 100F

• Limit contacts
• Family
• Social
• Professional
• Report condition during visit to health clinic

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Confinement measures

• Public health officials will recommend control
  measures in an attempt to prevent the infection
  from spreading among the population
• The measures applied by Hydro-Québec will be in
  addition to these measures
• Especially effective at the onset of the pandemic

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Confinement measures

• Various measures aimed at isolating critical
  workers from other workers
• Limit circulation triage reserve areas for
  critical workers for circulation, work and rest
  purposes
• Movement of teams
• Distribute critical workers to areas
  geographically far from one another
• Move small teams of essential workers from large
  buildings to small buildings
• Confinement complete isolation of critical
  workers for whom backup workers are in very short
  supply

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Confinement measures

• It is recommended to plan support for families of
  workers affected by the confinement and movement
  of teams

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Maintenance measures

• Maintenance of shared workstations
• Certain threat levels will require maintenance
  after each work shift
• Availability of antiseptic gel at the workstation
• Cleaning of work surfaces
• Access to a closed trash container that is
  emptied after each work shift
• General maintenance
• In certain situations
• Increased frequency of regular maintenance may be
  required
• Special maintenance may become necessary

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Protection of personnel

• For workers faced with job-related risks
• A face mask and other appropriate equipment must
  be worn
• A group of experts from the INSPQ is conducting a
  literature review and will soon table a report
  with recommendations regarding protection
• A reserve should be created for the company

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Involvement of management

• Senior management must support the implementation
  of the master plan
• The Health unit must provide expertise and
  assistance
• Corporate units must integrate master plan
  measures into their contingency plans

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Formal commitment from the CEO

• Adoption of plan
• Creation of a coordination committee
• (one representative per corporate unit)
• The Health unit will provide expertise and
  assistance
• Corporate units must integrate the master plan
  measures into their contingency plans by June 30,
  2006
• Regular progress reports to the CEO
• Planning of a company exercise in the fall of 2006

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Are proposed measures realistic?

• Managers must be convinced that
• It is possible to reduce the impact of events on
  essential services
• The measures proposed are reasonable considering
  the companys other priorities
• Their implementation is controlled and they can
  be re-evaluated depending on the results achieved

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Other leadership conditions

• A partnership with other stakeholders involved
  with monitoring and alert
• Mobilization mechanisms corresponding to the
  cross-sectional nature of this risk
• Allocation of minimum resources required

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Activities required from corporate units

• Identify minimum personnel required
• Identify critical personnel (absence of backup)
• Determine the level of confinement required and
  implement procedures
• Define communication procedures
• Plan monitoring and triage procedures for
  travellers

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Health alert

• The alert contains specific information on the
  threat of infection
• The alert provides links for obtaining the
  necessary tools
• Information sheets for workers
• Triage questionnaires
• Tips for travellers
• Conditions that apply before a person can
  reintegrate the workplace after returning from a
  trip to an at-risk region
• Additional prevention measures required

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Alert Diagram Biological Risks
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Keys to success

• Mobilization and coordination mechanisms
  corresponding to the cross-sectional nature of
  this risk
• Measures tailored to the specific conditions of
  each unit and integrated into existing plans
• Quality and sustained expertise and support from
  corporate units
• Partnership with other stakeholders involved in
  monitoring and alert
• On-going follow up on the part of senior
  management

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Part 4Application to a University Institution
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Have documentation and be convincing
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Knowledge of risks and impacts

• Impacts on humans will translate into problems
  involving
• Courses
• Professors
• Students
• Technicians (laboratories, computer)
• Research
• Delays in projects and contracts
• Supervision
• Critical research (on-going)
• Technicians (laboratories, high-technology,
  hazardous products)

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Specific constraints

• Professors
• Academic freedom
• National and international seminars
• Students
• Foreign students
• Trips
• No possible control over trips
• Other
• University activities based on groups of people
  (classes, meetings, conferences, seminars)
• Building layout on campus

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The Importance of Leadership
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Leadership and emergency preparedness (proposal)
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Specific Measures
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Alert levels

• Level 1 No threat of infection (new virus in
  animals but not in humans)
• Level 2 State of awareness (no or limited
  transmission between humans)
• Level 3 Threat suspected (new virus,
  significant transmission between humans)
• Level 4 Threat present (sustained and effective
  transmission between humans)
• Level 5 Case found in geographical area.

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Generic measures and applicability to the
institution
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Measures associated with alert levels
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Should universities be closed in the event of a
pandemic?

• Faced with this question
• The leadership of senior management is crucial
• Your role as managers
• Encourage discussion and action surrounding risk
  assessment and management
• Work to combine contingency plan with operational
  continuity plan
• Inform and mobilize teaching, research and
  department sectors
• Foster interuniversity cooperation in the area of
  planning and implementation of measures to cope
  with a pandemic.

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Part 5Conclusions
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In conclusion

• We cannot control all external elements
• Zero risk does not exist
• Lets be prepared

• Keys to success
• Get commitment from management
• Build on existing plans
• Seek the necessary help and resources

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Thank you for your attention