**Disaster Science and Management**

#### DSM 4996 -- Directed Readings

**"Crisis Management"**

**Summer 2002**

# 

## Introduction

Crisis management is a function of all public, private and non-profit
organizations, supporting their fundamental strategic objective of
ensuring survivability and economic viability. Crisis management
decisions must reflect business reality if a private sector organization
is to survive. In some organizations, crisis management is viewed and
supported as an integrated strategic function---these are the
"crisis-prepared" organizations, the characteristics of which will be
covered in subsequent sessions. Other organizations approach crisis
management in a non-comprehensive and fragmented manner which can
threaten their very survival should crises occur. These are
"crisis-prone" organizations, the characteristics of which will be
covered in subsequent sessions. Competitiveness especially in the
private sector can inhibit cooperation and sharing of ideas between
organizations. This is unlike the public sector, where cooperation
between all levels of government and municipalities is essential to
effective emergency management and encouraged. This class provides an
introduction to crisis management as it is applied in public, private
and non-profit organizations.

The approach of typical business organizations to the many facets and
problems inherent in effective crisis management, disaster recovery, and
organizational continuity has been fragmented. Financial departments
have dealt with loss control and risk management. Operational and
facility managers have been responsible for contingency planning, first
responder training, and emergency management for industrial accidents.
Information department heads have created disaster recovery procedures
and business continuity plans. Most companies have developed crisis
management teams and procedures based on their industry type and
perceived vulnerabilities. For example, many petrochemical companies see
crisis management as a part of the environmental safety and health
function. Crisis management in food product companies is often the
domain of the legal and corporate communications departments. In
financial institutions, crisis management is closely linked to computer
system security and recovery.

This course identifies, examines, and integrates the diverse crisis
management, disaster recovery, and organizational continuity issues
facing organizations. Basic crisis management, contingency planning,
disaster recovery, business continuity/resumption, and emergency
management skills and knowledge elements will be identified, discussed,
developed, and integrated according to the crisis management, disaster
recovery, and organizational continuity model. The strategic importance
of crisis management, disaster recovery, and organizational continuity
to private sector organizations will be emphasized throughout the
course.

Instructional methodologies, including case studies, small-group
activities, and student-led presentations are used to actively involve
each student in the learning process. When possible and practical,
processing of learning activities to include not only "what" was
learned, but the "so what" and "now what" to complete the learning cycle
will be followed to the maximum extent possible.

**Course Objectives:**

The purpose of the course is reflected in the overall objectives set
forth below:

1.  Understand the similarities and differences between governmental
    emergency management and crisis management in the non-profit and
    private sectors.

2.  Understand the concepts of crisis management, disaster recovery, and
    organizational continuity.

3.  Clarify the characteristics of an organization which indicate crisis
    preparedness (or crisis proneness) and the process of business area
    impact analysis..

4.  Identify risk management and loss control strategies (including
    crisis communications) that can be implemented to reduce the adverse
    impact of a disaster on organizations.

5.  Compare and contrast contingency, response, business recovery, and
    crisis management plans that lead to business resumption and
    recovery..

**Student Assessment:**

Grades for the class will be based on student performance in completing
six (6) class assignments, article reviews, and a course project. During
the semester, students will be asked to complete assignments related to
the section of the class. Assignments will be completed and submitted to
the course instructor for review. All class assignments will be graded
and returned to the student for review. Class assignments will comprise
50% of the course grade.

The class project will be a research report comprising at least ten
pages with references. The report will be a detailed examination of one
of the class topics with a special emphasis on technology in emergency
management.

The final element of a student's assessment involves reviews of
articles. The review will average 2 to 3 pages and will address three
areas including: the content of the article; an analysis of the article;
and an evaluation of the strengths and weaknesses of the text. The
articles will relate to topics addressed in sessions of the class and
must be currently available. The instructor will provide a list of
articles for review. The review will count 10% of the final grade.

**Content**: How is the article organized? What is the purpose? Who is
the intended audience?

**Analysis:** Did the article achieve the author's intended goals?

**Evaluation:** What are the strengths and weaknesses of the article?
Who could use it? Would you recommend this reading? If so, why?

**Class Project**

Students are required during the first three weeks of the semester to
identify an individual project topic. During the semester, the student
will review the class materials on the topic and identify issues, or a
specific application of the topic for detailed analysis. The project
report will be a detailed examination of the issue or application and
its contribution to business and crisis management (ten pages double
spaced). The topic for the class project must be reviewed by the
instructor. A one-page project status report must be provided to the
instructor by the middle of the semester. The project report will form
the basis of a class presentation during the last two weeks of the
class. The project will count for 15% of the final grade.

**Grading**

Class Assignments 50%

Class Project / Papers 40%

Book Review 10%

**Total** 100%

[This 4000-level class will be available for both undergrad and grad
credit]{.underline}. Undergraduate students will be expected to meet the
requirements as noted in the Student Assessment of the following course
description. Graduate students will be assigned additional readings and
have additional questions on all assignments, tests and the final exam.
Undergraduate students will be asked to complete five class assignments,
one class project / paper and a book review. The nature of the
assignment questions, scope of the class project and papers and exam
questions will differ from those given to graduate students. Graduate
students will be asked to complete six class assignment, one class
project / papers and a book review. As previously notes, graduate
students may be given a different set of questions for a class
assignment, and the scope of the class paper will be more complex --
reflecting additional reading assignments for graduate students.

**Class Sessions**

This class will meet once a week for group discussion of the class
assignments and readings. For the summer 2002 and Fall 2002 offerings of
this course class sessions will be for one and one-half hours once a
week. Class assignments will be submitted electronically using the LSU
Blackboard.

## Topics

# 1. [Definition of Key Terms and Identification of Crisis Events]{.underline}

A Strategic Framework for Corporate Crisis Management. John R. Harrald,
Institute for Crisis, Disaster and Risk Management, The George
Washington University Washington, D.C. Dr. Harrald is a former faculty
member of the LSU Ports and Waterways Institute. As a retired Coast
Guard officer you will notice his interest and professional association
with the maritime industry.

# 2. [Crisis Events Grouping and Vulnerability Drivers - Overview of the Crisis Management and Business Continuity Model]{.underline}

James R. Chiles. Inviting Disaster: Lessons from the Edge of Technology.
Harper Business (2001) -- An excerpt provided by the author.

An Interview with James R. Chiles. Thursday, August 23, 2001 Guest Host:
Frank Stasio. 12:00 - James R. Chiles: Inviting Disaster
(HarperBusiness). Listen in RealAudio! Three Mile Island. The Challenger
explosion. The Exxon Valdez. In our increasingly high-tech world, the
slightest mechanical defect or human error can sometimes lead to
catastrophe. Join us as look at recent disasters, why they happen, and
the lessons they can teach us about our use of technology.
http://www.wamu.org/pi/shows/piarc_010820.html

Ask the Author from Darwin Magazine - http://www.darwinmag.com/read/

An Interview with James R. Chiles -- Inviting Disaster -- Harper
Business (2001).

# 3. [Vulnerability Analysis and Risk Assessment, Risk Management, and Risk Communications --]{.underline}

[Business Area Impact Analysis (BAIA)]{.underline}

Risk Mitigation in Passenger Vessel Operations. John R. Harrald and
Martha Grabowski. Disaster Recovery Journal. Vol. 7, #3. Note the
description of the \"causal chain\" described on p. 2. You will be asked
to use this framework in your analysis of the Texas A & M bon-fire
incident.

# 4. [Risk Perception and Risk Communications]{.underline}

Uniting the Aggie Spirit. Since 1909 Texas A&M University students have
worked together each year to build a massive bonfire. The stack of
several thousand logs collapsed early morning on November 18, 1999,
killing twelve students and injuring at least 27 others. Bonfire was
cancelled that year. It was to have been ignited on Thanksgiving evening
as a prelude to Texas A&M\'s November 26 morning football game with The
University of Texas.

**Assignment:**

> A. Read \"A strategic framework for corporate crisis management,\"
> Harrald and \"Risk mitigation in passenger vessel operation\" by
> Harrald and Grabowski.
>
> B. Review the Final Report of the 1999 Texas A & M Bonfire Collapse.
>
> The mission of the Special Commission on the 1999 Bonfire is to
> determine the cause of the Bonfire collapse and report its findings to
> the university. Bonfire Commission Report. 2000. Texas A & M
> University. Other Reports and Information concerning the disaster.
> <http://www.tamu.edu/bonfire-commission/reports/> See Blackboard for
> Assignment questions.
>
> **Written response due June 20, 2002.**
>
> **Class session 11:00 Room 45 Atkinson Hall** - LSU Baton Rouge for
> discussion.

# 5. [Risk Management, Safety, and Security Management]{.underline}

Organizations at Risk. Daniel J. Alesch, Holly, Mitter, & Nagy. (2001)
Public Entity Risk Institute. Fairfax, VA
[http://www.riskinstitute.org](http://www.riskinstitute.org/) presents a
detailed study of the perceived impact of natural disasters on small
private and not for profit enterprises. Read this study - and especially
note the following Sections: Introduction and overview; Recovery -
robustness resiliency & compex systems; Findings; Conclusions

# **Written response due July 3, 2002.**

# 6. [Crisis Management, Communication and Decision Making]{.underline}

"Principles of Risk-Based Decision Making." Lt. Duane Boniface/ U.S.
Coast Guard

**Written response due July 10, 2002.**

# 7. [Crisis Management Team]{.underline}

**"Cross-departmental Cooperation and the Politics of Planning."** by
Jeff Marinstein February, 1998. Contingency Planning and Management.
Vol. 3 pp. 12 -- 15. Po[st Accident Audit of an Industrial
Accident]{.underline}:

# 

8\. [Post Audit Crisis Assessment]{.underline}

# **Assignment:** Questions developed by Dr. John R. Harrald and Gregory Shaw

# The George Washington University Institute for Crisis, Disaster, and Risk Management

##### 9. Business Contingency Planning

Federal Emergency Management Agency. 1996. *Emergency Management Guide
for Business and Industry*.

Washington, DC: Federal Emergency Management Agency.
<http://www.fema.gov/library/bizindex.html>

# 10. [Crises of Skewed Management Values, Deception, Management Misconduct, and Business Ethics: A Framework for Ethical Decision Making (This assignment is for Graduate Students and only a reading assignment for undergraduate students)]{.underline}

"The Unanticipated Consequences of Technology." The Ethics Connection --
Tim Healy

<http://www.scu.edu/SCU/Centers/Ethics/Publications/submitted/healy/consequences.html>
Ethics or morality poses questions about how we ought to act and how we
should live. It asks, \"According to

what standards are these actions right or wrong?\" It asks, \"What
character traits (like honesty, compassion,

fairness) are necessary to live a truly human life?\" It also asks,
\"What concerns or groups do we usually

minimize or ignore? And why might that be?\" Admitting our blindness is
the beginning of vision.

# **References:**

"A Framework for Ethical Decision making." *The Ethics Connection.*
Santa Clara, CA: Markula Center for Applied Ethics, Santa Clara
University. \[1999.\]
<http://www.scu.edu/ethics/practicing/decision/framework.html>

Barton, Laurence (2000). *Crisis in Organizations: Managing and
Communicating in the Heat of Chaos*.

Cincinnati, OH: South-Western Publishing Co.

Chiles, James R. (2001). *Inviting Disaster : Lessons from the Edge of
Technology.* Harper Business.

Doughty, Ken (2000). *Business Continuity Planning: Protecting your
organization's life.* Auerbach Publishers, Incorporated.

Emergency Preparedness Canada, with the Disaster Recovery Information
Exchange. 1995. *Business Resumption Planning* *-- A Guide.*
Fredericton, NB, Canada: Minister of Supply and Services.
[cominfo@epc-pcc.x400.gc.ca](mailto:cominfo@epc-pcc.x400.gc.caor) or
<http://hoshi.cic.sfu.ca/epc/pub/manuals/en_busresume.html>.

Federal Emergency Management Agency. 1996. *Emergency Management Guide
for Business and Industry*. Washington, DC: Federal Emergency Management
Agency. <http://www.fema.gov/library/bizindex.html>

Fischhoff, Baruch. 1995. "Risk Perception and Communication Unplugged:
Twenty Years of Process." *Risk Analysis*. Vol. 15, No. 2. Pages
137--144.

Greening, Daniel W., and Johnson, Richard A. 1997. "Managing Industrial
and Environmental Crises." *Business and Society*. Vol. 36, No. 4. Pages
334--361.

Hale, Joanne. 1997. "A Layered Communication Architecture for the
Support of Crisis Response." *Journal of Management Information
Systems.* Vol. 14, No. 1. Armonk, NJ.

Harvard Business School (2000). *Harvard Business Review on Crisis
Management.* Harvard Business School Press.

Kleinrichert, Denis. 1998. *Contingency Planning for Business and
Industry*. Institute of Emergency Administration and Fire Science, St.
Petersburg Junior College. St. Petersburg, Florida: Institute of
Emergency Administration and Fire Science.
[http://eam-fire.spjc.cc.fl.us/eam/bus_rec/index.htm](http://eam-fire.spjc.cc.fl.us/eam/Bus_rec/index.HTM).

Lerbinger, Otto. 1997. *The Crisis Manager -- Facing Risk and
Responsibility*. Mahwah, NJ: Lawrence Erlbaum

Associates.

Lynch, James R. 1996. "Quantitative Risk Assessment: Application to
Industry*.*" *Disaster Recovery World III.* St. Louis, MO: *Disaster
Recovery Journal.* Pages 100--101. (Vol. 7, No. 2).

Marinstein, Jeff. 1998. "Cross-Departmental Cooperation and the Politics
of Planning." *Contingency Planning and Management* Vol. 3, Feb. 1998.
Pages 12--15. Flemington, N.J.
[http://www.contingencyplanning.com](http://www.contingencyplanning.com/)

Mitroff, Ian I., Pearson, Christine M., Harrington, L. Katharine 1996.
*The Essential Guide to Managing Corporate Crises.* New York: Oxford
University Press.

Mitroff, Ian I. And Gus Anagos (2000). Managing Crises before they
happen: What every executive and

manager needs to know about crisis management. AMACOM.

Moore, Pat. 1997. "How to Plan for Enterprise-Wide Business and Service
Continuity." In *Disaster Resource Guide*. Santa Ana, CA: Emergency
Lifeline Corporation.

<http://www.disaster-resource.com/articles/97moore.htm>.

Myers, Kenneth N. (1999). *Disasters * 2^ND^. John Wiley & Sons, Inc.
1999.

Naylis, Gerard J. 1996. "Corporate Terrorism: Managing the Threat."
*Risk Management.* Vol. 43, No. 6. New

York.

Pauchant, Thierry C., and Mitroff, Ian I. 1992. *Transforming the
Crisis-Prone Organization.* San Francisco: Jossey-Bass Publishers.

Sample Disaster Recovery Plan. 1996. St. Louis, MO. *Disaster Recovery
Journal.* On *Disaster Recovery Journa.l*
<http://www.drj.com/drpol/drp.html>.

Sellnow, Timothy L., Ulmer, Robert R., and Snider, Michelle. 1998. "The
Compatibility of Corrective Action in Organizational Crisis
Communication." *Communication Quarterly.*. Vol. 46, No. 1. University
Park, MD.

Slovic, Paul. 1987. "Public Perception of Risk." *Journal of
Environmental Health*. May 1997. Pages 22--23.

Toigo, Jon William Toigo (1995). *Disaster Recovery Planning: For
Computers and Communication Resouces*. New York: John Wiley & Sons, Inc.

Traverso, Debra K. 1993. "How to Develop a Crisis Communication Plan."
*Occupational Hazards.* Vol. 55, No. 3. Cleveland.

"Unethical Workers and Illegal Acts." 1999. *Society.* Vol. 36, No. 4.

Wold, Geoffrey, H. 1992. "Disaster Recovery Planning Process -- Part I
of III*.*" *Disaster Recovery World III.* St. Louis, MO: *Disaster
Recovery Journal.* Pages 15--18. *al* (Vol. 5, No. 1).
<http://www.drj.com/new2dr/w2_002.htm>

Wong, Bo K., Monaco, John. A., and Sellaro, C. Louise. 1994. "Disaster
Recovery Planning: Suggestions to Top Management." *Journal of Systems
Management*." Vol. 45, No. 5. Pages 28--32.