Crisis Management 05

AMA Research

2005 AMA Survey: Crisis Management and Security Issues Crises that affect businesses come in many forms and often occur without notice. So, whether it is an accident, a scandal, a malicious act or a natural disaster, organizations recognize that they need to be prepared. AMA surveyed 105 Executive Members and customers during the months of August and September 2005 to determine if crisis management plans were, indeed, in place. According to the results, more than half (60%) of all U.S. companies surveyed have crisis management plans, a downward trend since 2003 (64%). Among those companies that do have crisis management plans, they have also addressed concerns different from those of previous years. The greatest concern in 2005 was for natural disasters (77%), followed by more traditional risks such as technology system failures (73%), and industrial accidents (65%), as well as risks from crime (31%), terrorism (46%) and major fraud (18%). When planning for a crisis communication plan, companies are focused more closely on their senior management team (79%), and employees (84%), than on family members (38%). More than half of all respondents say that their organization has designated a crisis management team (56%) and half have conducted crisis drills or simulations (50%). And 38% have trained key personnel in crisis management skills. Nearly half of the companies surveyed offered employees formal training on security procedures (52%), and most of those that do (90%), receive training once a year or less. The survey also reveals that companies are also concerned with employee screening and selection (27%—a high level of concern) and business resumption planning (34%). They are less concerned about travel (13%) and parking lot safety (10%).

SURVEY DATA: Q. Does your organization have a crisis management plan in place, including a plan to help employees in a crisis event? No

40%

Yes

60%

Q. If yes, do you have written policies and procedures? No

7%

Yes

93%

Q. If yes, do you have a written contingency plan? No

10%

Yes

90%

Q. For which of the following risks does your company have a crisis management plan? Natural disasters Technology system failures or loss of data Crime Disturbances (terrorism, political unrest) Death of a senior executive Malicious rumors/slander Major fraud Industrial accidents/fatalities Workplace violence or unethical behavior of employees Major business problem or issue with potentially negative impact across company

77% 73% 31% 46% 27% 15% 18% 65% 65% 38%

Q. For which of the following constituents does your company have ongoing and back-up communications plans? Senior Management Team Employees

79% 84%

Emergency Respondents Legal Entities Insurance Carriers

62% 26% 36%

Key Stakeholders Media Regulatory Bodies Contractors Family Members

43% 39% 36% 27% 38%

Q. Has your organization designated a crisis management team? No

44%

Yes

56%

Q. Has your organization conducted crisis drills or simulations? No

50%

Yes

50%

Q. Have key personnel across all lines of business and support divisions been trained in crisis management skills to ensure support from every major area of your company? No

62%

Yes

38%

Q. Does your organization offer employees formal training on security procedures? No

48%

Yes

52%

If yes, how frequently do your employees receive formal training on security procedures? Once a year or less Once every quarter Monthly or more

90% 6% 4%

Q. How concerned is your company with the following risks? Level of Concern Employee Screening/Selection Business Resumption Planning Evacuation Planning Cyber Threats Workplace Violence Hazardous Materials Travel Safety Parking Lot Safety Terrorist Attacks

Low

Moderate

High

25% 28% 25% 24% 35% 48% 37% 48% 56%

48% 38% 36% 39% 46% 31% 49% 42% 32%

27% 34% 38% 37% 19% 21% 13% 10% 12%

DEMOGRAPHICS: Q. How many employees does your company have in total? 100 or less 101–500 501–1,000 1,001–2,500 2,501–5,000 5,001 or more

26% 29% 19% 9% 5% 12%

Q. What industry best describes your organization? Business/professional services Financial services General services—for profit General services–nonprofit Manufacturing Public administration Wholesale/retail Other

14% 13% 2% 11% 32% 7% 3% 18%