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Community Awareness Emergency Response (CAER)
Emergency Preparedness & Climate Change:Evaluating and dealing with risk.
(Business perspective)
HIEA PresentationApril 2, 2014Chris Anderson
About Hamilton CAERCommunity Awareness
and Emergency Response (CAER)
a community-based volunteer organization established in 1980
Membership Air Liquide ArcelorMittal Dofasco Biederman Packaging Columbian Chemicals Canada City of Hamilton – Emergency, Fire
and Police Services Fanchem Ltd. First Response Environmental Hamilton Port Authority Itech Environmental
McAsphalt Newalta Quantum Murray Ruetgers Canada Tennier Sanitation U. S. Steel Canada – Hamilton Vopak Westway Terminals
CAER’s Mission
1. Prepare2. Cooperate
3. Communicate
CAER’s Mission #1Prepare…
… to encourage the development and maintenance of effective emergency response plans within Hamilton through information sharing and special projects
CAER’s Mission #2Cooperate…
… to facilitate the co-ordination of industrial emergency response plans with community and governmental emergency planning services.
CAER’s Mission #3Communicate…
… to provide a means for local industry to inform the community of the steps taken to prepare and prevent emergencies, thereby increasing awareness to minimize the risks to people, property and the environment should an emergency occur.
Company Example
• Established in 1912 – Dominion
Steel Castings
• Acquired in January 2006 by Arcelor
• Integration of Dofasco into
ArcelorMittal Flat Carbon Americas
began February 2007
• Canada’s largest producer of flat
rolled steels
• Leading supplier to automotive
• Manufacturing focused in the Great
Lakes Region (Hamilton, Windsor,
Montreal)
ArcelorMittal Dofasco
Coke Making3 Batteries
Iron Making3 operational blast furnaces
Steel Making1 Electric Arc Furnace
1 Basic Oxygen Furnace
2 Casters
Rolling1 Hot Strip Mill
Cold Rolling2 Pickle lines
1 Tinning Line
4 Galvanizing Lines
1 Galvalume
Property750 acres
In a major urban centre
Our Hamilton facilities
What If: It’s a hot and humid weekday afternoon in August.
A severe storm system is progressing through Ontario, towards Hamilton.
Tornados watches and warnings have been issued by Environment Canada.
Severe weather cells are now close, as seen by on-line radar images.
AMD Response: Who is formally monitoring the weather situation for EM & BC purposes?
How would we respond if this scenario occurred today?
How should we be responding, to safeguard employees & fixed / mobile assets?
How, what and when should we be communicating to employees?
If there was damage to manufacturing or office assets, how would we respond?
How, what and when would we communicating externally if injury or damage?
Emergency ManagementAn ongoing process to prevent, mitigate, prepare for,
respond to, and recover from an incident that threatens life,
property, operations, or the environment.
Business ContinuityAn ongoing process supported by senior management and
adequately funded to ensure that the necessary steps are taken
to identify the impact of potential losses and maintain
viable recovery strategies and recovery plans for the
continuity of services and operations, following a disruptive
event.
Organizations must prepare for both emergencies and the resulting risks to the
sustainability of the business.
13
Emergency and Crisis Management• Get situation under control
Incident
time
Prepare Respond
Risk Management• Continuously improve preparedness
Business Continuity• Recover Business
EM & BC Incidents threaten life, environment, property or operations.
The impact of these incidents can be mitigated through adequate planning.
Note: Best practice standard;
now incorporated into
Canadian Standards
Association (CSA Z1600)
Emergency Management & Business Continuity Planning
Disaster-related Plans
Crisis Communications Plan“accurate, timely information to stakeholders”
B.U. Departmental Contingency Plans“specific disruption/failure”
Business Continuity Plan“critical process & operations recovery, company-wide
basis”
I.T. Disaster Recovery Plan“IT infrastructure recovery, company-wide basis”
Major Emergency Response Plan (MERP)“prevent loss of life, minimize injury/property damage”
Adapted from ©2006 DRI International
Pandemic Influenza Plan“maintain critical operations with increasing
absenteeism”
Emergency / Critical Diesel Refueling Plan“maintain critical operations & emergency generators
during diesel fuel outages”
Major Production Outage / Capacity Disruption
Response Template“maintain steel customer orders through alternate internal / external
production processes”
Shipping Capacity Disruption
Response Template“maintain critical customer shipping orders”
Under development:
•Mass Evacuation Plan
•Shelter-in-Place Plan
•Active Shooter Plan
Manufacturing
Coordinator(s) *GM, Manuf. (TBD
on circumstances)
Manufacturing
Coordinator(s) *GM, Manuf. (TBD
on circumstances)
• Backups required for each roleEmergency &
Crisis Coordinator*
QMC Chairperson
Medical
Coordinator *Mgr, Integrated
Health
Communication
Coordinator *VP, Corp. Comm.
and Public Affairs
H&S
Coordinator
Mgr, Health &
Safety
Environment
Coordinator *
GM, Environment
Security & Fire
Coordinator *Mgr, Loss
Prevention
* Denotes roles required by AM
Emergency Management
Guidelines. See AM 016.
Balance of QMC
members,
representing:
• E.M.T.
• Financial
• Purchasing
• I.S.
• Manuf. Tech & P.A.
• Metallurgy
• Sales & Marketing
• Customer Service
+ other Commercial
reps. as required.
HR / Logistics /
Infrastructure
Coordinator *GM, Core Services
Sponsor
Executive Team
Legal
Coordinator *VP, HR / Corp.
Admin
AM Corporate
Crisis Management
Team
External Agencies /
Organizations
• Ministry of Labour
• Ministry of
Environment
• City of Hamilton
• Marine Commerce
Resumption
• Fire Dept.
• Local Health
Integr. Network
• Public Health
• Ont. Occup. Health
Nurses Assoc.
Emergency & Crisis
Risk Management Coordinator
Chris Anderson
Risk Management
Functional Area Leads
• Security (Chief)
• Fire Dept. (Chief)
• Integrated Health (Manager)
• Health & Safety (Manager)
• Human Resources (GM, Core Serv)
• Financial (Mgr, Cash & Banking)
• IT (Demand Mgmt rep.)
• PA (GM, PA)
• Procurement (Mgr, Procur. Process)
• Order Fulfillment (Mgr, Order
Planning and Commercial Tech.)
• Environment (Mgr, Env. Mgmt Sys)
• Corp. Comm. & Public Affairs (Mgr)
• Manufacturing (GMs)
Process Owner
QMC
Supports Emergency & Crisis
Coordinator & Team during incidents
This part of the structure will sustain and improve our preparedness.
This part of the structure will respond to Emergencies and Crises.
Financial H&S Env. Customer
ImpactOver $100m Multiple fatalities
and/or extensive
health impact to
employees
4 in AMD Env.
Risk Mgmt
framework
Permanent loss
of customers
and reputation
5. Critical
Up to $100m 1 fatality and/or
serious health
impact to several
persons
3 in AMD Env.
Risk Mgmt
framework
Major impact to
customers and
reputation
4. Major
Up to $30m Injuries to several
persons
2 in AMD Env.
Risk Mgmt
framework
Moderate impact
to customers
and reputation
3. Moderate
Up to $10m Injuries to 1 person 1 in AMD Env.
Risk Mgmt
framework
Minor impact to
customers and
reputation
2. Minor
Up to $3m No injuries 0 in AMD Env.
Risk Mgmt
framework
No impact 1. Negligible
1 (0%-10%) 2 (11%-30%) 3 (31%-50%) 4 (51%-90%) 5 (91%-100%)
Very Low Low Moderate High Very High
Imp
act
Likelihood / Probability
Risk Matrix
We customized an AM Risk Matrix for defining probabilities & impacts of
hazards. Probabilities are within a 0-10 year time frame.
The risk areas and
hazards we
identified align well
with global risks as
presented at the
World Economic
Forum.
Emergency Management & Business Continuity
World Economic Forum
Global Risk Landscape 2013
The risk areas and hazards
we identified in 2011 still
align well with global risks as
presented at the 2013 World
Economic Forum.
World Economic Forum
Global Risks 2014
5. Critical
4. Major
3. Moderate
2. Minor
1. Negligible
1 (0%-10%) 2 (11%-30%) 3 (31%-50%) 4 (51%-90%) 5 (91%-100%)
Very Low Low Moderate High Very High
Imp
act
Likelihood / Probability
Risk Matrix
H&S
1. Pandemic / Epidemic
IT
2. Main Office Unavailable
3. Main Office & DQC Unavailable
4. Manuf. control system IT security
Natural Disaster
5. Earthquake
6. Tornado
7. Winter Storm
8. Extreme Heat / Cold
Supply Chain
9. Raw Materials (incl. production materials)
10. Outside Processing
11. Natural Gas
12. Electricity
13. Industrial Gases
14. Transportation Infrastructure
Environment
15. Harmful Substance Release - Int.
16. Harmful Substance Release - Ext.
Property
17. Radioactive Material
18. Fire / Explosion
19. Marine accident
20. Aircraft accident
Security
21. Internal Threat
22. External Threat
Production
23. Major Production Outage
1
2
3, 5,
10, 11, 12
14, 15, 16, 17
19,20,21,22,23
7, 8
6, 13
18
Collectively, the ratings for all hazards form a heat map.
9
4
Emergency Management & Business Continuity
Major
Emergency
Response
Plan
To provide for the maximum possible protection of all employees and visitors on site and the public in the event of a major emergency or crisis.
To minimize property damage and losses.
To enable a rapid recovery from the impacts of a major emergency, crisis or disaster.
To promote planning and establishment of contingencies for foreseeable impacts from major emergencies, crises or disasters.
To coordinate the efforts of employees and departments for an effective response to all threats.
On-Site Emergency Response Team
25
Manufacturing
Coordinator(s) *GM, Manuf. (TBD
on circumstances)
Manufacturing
Coordinator(s) *GM, Manuf. (TBD
on circumstances)
Crisis Coordinator*(Respond)
Chair, QMC
Medical
Coordinator *Mgr, Integrated
Health
Communication
Coordinator *VP, Corp. Comm.
and Public Affairs
H&S
Coordinator
Mgr, Health &
Safety
Environment
Coordinator *
GM, Environment
Security & Fire
Coordinator *Mgr, Loss
Prevention
Balance of QMC
members,
representing:
• E.M.T.
• Financial
• Purchasing
• I.S. & P.A.
• Metallurgy
• Sales & Marketing
• Customer Service
+ other Commercial
reps. as required.HR / Logistics /
Infrastructure
Coordinator *GM, Core Services
Sponsor
Executive Team
Legal
Coordinator *VP, HR / Corp.
Admin
AM Corp. Crisis
Management
Team
External Agencies /
Organizations
• Ministry of Labour
• Ministry of
Environment
• City of Hamilton
• Marine Commerce
Resumption
• Fire Dept.
• Local Health
Integr. Network
• Public Health
• Ont. Occup. Health
Nurses Assoc.
Emergency & Crisis
Risk Management Coordinator
(Chris Anderson)
EM & BC
Process Owner
QMC
Supports Crisis Coordinator &
Crisis Mgmt Team during incidents
Emergency
Operations
Center
Public Affairs
Coordination
Room
Main Office 4th Floor
Key
Emergency Operations
Center: Board Room
Public Affairs Coordination
Room: Teleconferencing Room
Breakout Rooms:
4th Fl General
Exec. Board room
Severe Weather Alerts:
•Tornado warnings within 3 miles
•Null tornado warnings
•High winds >50mph
•Lightning within 10 miles
•Flash flood
•Severe winter conditions
•Snow & ice warnings
AccuWeather / SkyGuard
Weather monitoring / AlertsLocation specific (10 mile radius)
The process of developing a business continuity program to:
resume critical operations within a specified time period after a disaster
continue essential services availability
minimize financial loss
protect clients / customers / community interests
expedite the restoration of services
RiskAnalysis
BCP Planning Process
ProgramManagement
Business ImpactAnalysis (BIA)
Continuity &Recovery Strategies
OperationsPlan
Awareness& Training
Maintenance& Updating
BusinessContinuity Plan
Scenarios& Testing
Adapted from ©2006 DRI International
ARCELORMITTAL
DOFASCO
PANDEMIC
PLAN
Business Continuity Plan
[Department Name]
RESTRICTED CIRCULATION
Owner: Department Continuity
Coordinator
[Name]
Arcelor Mittal Dofasco Inc. -
Confidential
© AM Dofasco Inc. 2013
Assess Market Impact
Is there a market impact?
Assess options for an internal(AMD) solution
Is there an internal
solution?
Assess options for an external solution
(including AM-USA, Outside Processors, AM
Is there an external solution?
Initiate processes to finalize plans & implement
solution(s)
Update sales & operations plan and address impact to
customers affected
END
No
Yes
Yes / Partial
No
Yes / PartialNo
Supply Chain MgtManufacturing Mgt
Commercial MgtCapacity Planners
Commercial MgtCapacity PlannersSales, Mfg, Finance Reps
Commercial MgtAM-USA Corporate Planning & MktingAM Corporate RepsOutside Processing Reps
Commercial MgtSales Reps
END
Process Owners
An internal throughput-related Sentinel Event has occurred OR
similar significant event has occurred at DJG, CdL, Baycoat
or Taylor Steel. Process Owner kicks-off
process.
Collect details of event (including affected operation(s),
outage duration, modified capability, etc.
Supply Chain MgmtManufacturing Management
START (A)Internal Sentinel
Event Coordinator
START (B)Name of role(s) that will know 1st about
an OP/JV event
Process Owner =??? role ???
Assess Market Impact
Is there a market impact?
Assess options for an internal(AMD) solution
Is there an internal
solution?
Assess options for an external solution
(including AM-USA, Outside Processors, AM
Is there an external solution?
Initiate processes to finalize plans & implement
solution(s)
Update sales & operations plan and address impact to
customers affected
END
No
Yes
Yes / Partial
No
Yes / PartialNo
Supply Chain MgtManufacturing Mgt
Commercial MgtCapacity Planners
Commercial MgtCapacity PlannersSales, Mfg, Finance Reps
Commercial MgtAM-USA Corporate Planning & MktingAM Corporate RepsOutside Processing Reps
Commercial MgtSales Reps
END
Process Owners
An internal throughput-related Sentinel Event has occurred OR
similar significant event has occurred at DJG, CdL, Baycoat
or Taylor Steel. Process Owner kicks-off
process.
Collect details of event (including affected operation(s),
outage duration, modified capability, etc.
Supply Chain MgmtManufacturing Management
START (A)Internal Sentinel
Event Coordinator
START (B)Name of role(s) that will know 1st about
an OP/JV event
Process Owner =??? role ???
ARCELORMITTAL
DOFASCO
Emergency /
Critical Diesel
Refueling Plan
Departmental BCPs
Specific BCPs
Production / Capacity Disruption
Response Templates
ARCELORMITTAL
DOFASCO
I.T. Disaster
Recovery Plan
Business Continuity Plan[Department Name]RESTRICTED CIRCULATIONOwner: Department Continuity Coordinator[Name]Arcelor Mittal Dofasco Inc. -Confidential© AM Dofasco Inc. 2013
Departmental Business Plans
•Department specific
•Identification of :
•critical operations / activities / tasks
that are essential (“must do”)
•essential business including critical suppliers,
core people, skills etc.
•essential staffing required at work
(vs. work from home)
•Mitigation strategies / Action Plans
•Emergency contacts / notification procedures
•Command Center / “War Room”
(including Back-up location)
•Critical records, supplies etc. (recovery boxes)
•Recovery Procedures
Natural Disasters: Allianz Global Corporate & Specialty SE (AGSC) risk survey 2014
reported “Natural catastrophes topped the list of Canadian business risks, with 50% of respondents identifying it as the number one risk. Globally, insured losses from natural catastrophes totaled Can$ 41bn in 2013 (Source: Swiss Re).”
Climate Change & Extreme Weather events are increasing in impact & likelihood.
Persistent Extreme Weather & Natural Catastrophes Note: World Economic Forum – Global Risks 2014 and increasing tornado & earthquake
potential for Hamilton area per Environment Canada. New “arctic vortex” phenomenon in North America this winter.
“What keeps you up at night?”
Back-up Slides
Current ProjectHazard Identification & Risk Assessment (HIRA)
Each CAER member has been asked to collect the background information and assess the potential
risk of their operations to impact environment (air, water..) outside of their site perimeter and
ultimately the Hamilton Community, and requiring a coordinated emergency response.
CompanyHazard Identification Risk Assessment (HIRA)
Hazard
Name Address Emergency
ContactName & Number
SubstanceStorage Quantity
Emergency Scenario
Co
nse
qu
en
ce
Fre
qu
en
cy
RiskLevel
Vulnerability Assessment Risk Screening Matrix
Consequences Categories
Category Impact/Consequences
Health & Safety
54321
Multiple fatalities and/or extensive health impact to employees1 fatality and/or serious health impact to several personsInjuries to several personsInjuries to 1 personNo injuries
Financial
54321
Over $100mUp to $100mUp to $30mUp to $10mUp to $3m
Environment
54321
Major Impact – Extensive health impact and / or fatalitiesModerate Impact – Potential health implicationsMinor Impact – Slight Irritation Negligible Impact (Nuisance) No impacts / Not regulated
Customer Impact
54321
Permanent loss of customers and reputationMajor impact to customers and reputationModerate impact to customers and reputationMinor impact to customers and reputationNo impact
Note: Financial criterion limits may vary depending on the size of the organization. Both property damages and business interruption costs should be considered.
Note: Environmental consequence category would be the main consideration for this analysis. Other consequence categories are provided for further consideration. If other categories are considered the “worst case” or highest
category impact should be used for overall risk value.
Frequency Categories
Category Consequences
High 4A failure that is likely to occur frequently or continuously experienced daily, weekly, monthly (< 1 year).
Moderate 3
A failure that has occurred at your facility, can reasonably be expected to occur more than once within the expected lifetime of your facility (e.g., single human error would cause scenario), or likely to occur yearly (1-10 years).
Low 2
A failure that has occurred at your facility, can reasonably be expected to occur once within the expected lifetime of your facility (e.g., dual human error, single mechanical failure of maintained equipment would cause scenario), or likely to occur once every 11-20 years.
Very Low 1
A failure that has occurred at another company, has a low probability of occurring within the expected lifetime of your facility (e.g., multiple human errors, combined mechanical failure/human error, would cause scenario), or likely to occur once every 21-50 years.
Risk Assessment Matrix