RISK MANAGEMENT AND CRISIS RESPONSE WORKSHOP. Lawrence E. Ritchie

Transcription

1 RISK MANAGEMENT AND CRISIS RESPONSE WORKSHOP Lawrence E. Ritchie January 15, 2015

2 INTRODUCTION

3 SPEAKERS Panellists Michelle Lally, Partner, Osler Anne Sonnen, Chief Compliance Officer, BMO Financial Group Alan Stewart, Partner, Deloitte Facilitator Lawrence E. Ritchie, Partner, Osler

4 ANATOMY OF A CRISIS

5 How a Spark Becomes an Inferno Identification of a Problem 5

6 How To Deal With A Potential Crisis Issue a Press Release Retain Outside Counsel Audit Committee Responsibility Restate Financials Considerations of Various Options Board of Directors Isolate/suspend implicated management Special Committee established Report to the Regulator Management Media Leak Whistleblower Analyst Letter from Regulator Picked up by auditors Identification of Problem Market Competitor Internal identification of errors in financials 6 Truck accident / train derailment Cyber-hack

7 Risks Cannot Be Siloed Board of Directors Corporate Human Resources Sales & Marketing IT Logistics IMPACT IMPACT 7

8 How likely do you think it is that your company will experience each of these in the next 6-12 months?* To what extent do you agree or disagree that having a crisis plan in place would benefit your company?* Does your current company have a crisis management plan?* * 8

9 How long would you say it took your company to recover from the crisis?* * 9

10 Why be Proactive? Reduce business vulnerability. See risks that are not apparent. Provide insights and support to key decision makers and responsible persons. 10

11 Why be Proactive? Frame regulatory issues. Get credit for cooperation. Better class-action defence. 11

12 Planning for a Crisis 1. Identify the actual problem. 2. Report within the Organization. 3. Assess and understand the risks and potential consequences. 4. Leverage your experts and their expertise. 12

13 Planning for a Crisis Don t hide or hide from a crucial issue. Investigate Report Act 13

14 DEVELOPING A CRISIS ROADMAP

15 Internal Issues Crisis Roadmap Relevant Considerations How to define the crisis? Identification of risks Identification of stakeholders and accountable parties Internal task force Remediation and learning from corporate crises 15

16 Crisis Roadmap Relevant Considerations External Issues Evaluating the need for outside expertise Privilege considerations Regulatory implications Public relations implications 16

17 Crisis roadmap illustrative example Other stakeholders Regulators Fiduciary Duty Litigation Investigation/ Regulatory enforcement Reporting Company and contracted parties Board of Directors Reporting CEO & Management Independent committee Mandate Reporting Information External advisors (Lawyers / Accountants) 17

18 Responding to Corporate Crises Investigation Reporting Other Potential Action Interviews with employees and/or stakeholders Acquisition and review of electronic evidence Review of business and accounting records Business intelligence Data analytics 18

19 Responding to Corporate Crises Investigation Reporting Other Potential Action Within organization Outside of organization (regulatory, media, professional regulatory bodies (e.g. CICA)) 19

20 Responding to Corporate Crises Investigation Reporting Other Potential Action Terminations and human resource considerations Fidelity Claims 20

21 THANK-YOU