SWINE FLU/H5N1! FEMA Ver2 Simpson Wigle LAW LLP EXPLOSIONS! \scl\schl ver5 Simpson Wigle LAW LLP Simpson Wigle LAW LLP DJB Ver5 2 FIRES! 3
Simpson Wigle LAW LLP FLOODS! Simpson Wigle LAW LLP BLACKOUTS! 5 Simpson Wigle LAW LLP Simpson Wigle LAW LLP DJB Ver5 THE ECONOMY! Simpson Wigle LAW LLP
Simpson Wigle LAW LLP Legal Risk: Assessment & Management FEMA 12th Annual All-Hazards Higher Education Conference June 1-3, 2009 Legal Risk Assessment & Management: Identify: What Can Go
Wrong Manage: How To Fix It Seinfeld Risk Management http://www.youtube.com/watch?v=mI4WH8bBpPk Mitigate: Fix It Risk Never Sleeps http://www.youtube.com/watch?v=qDmBLF4-PzA&NR=1 Jay N. Rosenblatt Partner [email protected] com Ver2
8 Simpson Wigle LAW LLP LEGAL RISK Management Risks & Threats The Focus: Legal RISKS/THREATS: YOU GET SUED! Legal SOLUTIONS Examples, Consequences, Mitigation & Management 10 Simpson Wigle LAW LLP Simpson Wigle LAW LLP Simpson Wigle LLP
LEGAL RISK Management Risks & Threats The Themes: Legal Litigation Mitigation (Bill Nicholson @ DHS) $$$ RISKS to: Business, Directors, Sr. Management/Owners Supply Chain Risk Management (SCRM) IMMEDIATE SOLUTIONS: DUE DILIGENCE: Standards/Best Practices NFPA1600 & CSA Z1600 11 Simpson Wigle LAW LLP Simpson Wigle LAW LLP
Simpson Wigle LLP LEGAL RISK Management If A Solution Was That Simple When it happens you are in a fix; YOU have to get yourself out of it. Its that simple. You cannot call a magical toll free number to extricate yourself. There is no way to run a sausage machine backwards and get pigs out of the other end. After all, if a solution was that simple, it would not be a crisis David Kaye, UK
Simpson Wigle LAW LLP 1 2 LEGAL RISK Management Just Because It Isnt Raining Noah - The first Business Continuity Manager He had good connections & prior warning We TOO have had prior warning Plan ahead - When Noah built the ark, it wasnt raining Follow Professional Advice Jays Parable
Simpson Wigle LAW LLP 1 3 LEGAL RISK Management Disasters Listeriosis - National Meth Lab Next Door Local Propane Explosion Local Terrorist Attacks Global
Simpson Wigle LAW LLP 1 4 LEGAL RISK Management You Never Know When Simpson Wigle LAW LLP 1 5 LEGAL RISK Management (Fragile) Supply Chain Risk Management Partnerships & BCP Up & Down the Supply Chain
LEGAL RISK Management You Never Know When or What Supplier failures (financial, production, design, etc.) Delivery Delays Spoilage Raw materials Poor Packaging Unanticipated supply constraints,
allocation, price increases Manufacturing Price, Currency, and Interest rate fluctuations Counterfeiting/diversion Filling & packaging Political upheava l Infrastructure outages
(fire in plant, power grid down, etc.) Improper Handling or Cargo Placement Distribution Center Natural Disasters Diversion / Gray Market Unanticipated demand surge or drop-off
Wholesaler Customer Pandemic Work stoppages Labor disputes Theft Courtesy of Marsh Insurance LEGAL RISK Management You Never Know When e.g. Nokia & Ericcson Simpson Wigle LAW LLP
18 LEGAL RISK Management BUSINESS Exposure Its All About: $$$ & STAYING IN BUSINESS! Disruptio n Disaster Emergenc y People, Plant, Products Simpson Wigle LAW LLP
Supply Chain Management Money Facilities & Security Confidential Info. & I.T. 19 LEGAL RISK Management LEGAL Exposure
Disruptio n Disaster Emergenc y Employees/ H.R Simpson Wigle LAW LLP Contracts Negligence Regulatory Compliance (Health, Safety,
Privacy) I.T. & Securit y Pandemic s 20 LEGAL RISK Management DUE DILIGENCE Due Diligence: Your Safety Net!!! What is it and how do you use it? Risk & Business Impact
Assessments Business Continuity Planning Standards: NFPA1600/CSA Z1600 Contracts Worry & Spend a Bit Now, or Policies Worry & Spend a Whole Lot Later! Audit procedures and Jay N. Rosenblatt documentation What, Me Worry! Simpson Wigle LAW LLP 21
LEGAL RISK Management Employees & Human Resources Legal Risk/Threat: You get sued!: Civil & Class Actions Examples of Risks/Threats: Human Capital/Workplace Management Health & Safety, Employee & Labour Standards Security & Violence in the Workplace Termination (stolen data & strategic information) Intellectual Property, Confidential Information Teleworking (new issues): Health, Safety & Security @ Home Workplace Violence, Absenteeism, Denial of Access 22 Simpson Wigle LAW LLP Simpson Wigle LAW LLP
LEGAL RISK Management Employees & Human Resources Manage & Mitigate Risks/Threats: Due Diligence Human Impact Risk Assessment Risk & Business Impact Assessments Policies: Health & Safety, Pandemic Contracts: Employment Non-Disclosure Non-Competition/Solicit Confidential Information E-Mail/Computer Use Policies: Health & Safety, Pandemic, Document, Document, Document 23
Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Contracts Legal Risk/Threat: You get sued!: Civil & Class Actions Examples of Risks/Threats: Supply Chain Management: Nokia/Ericcson, Wal Mart, Cadburys, Loblaw Municipalitys Critical Service Providers Municipality Force Majeure Sub-Contractor Liability 24 Simpson Wigle LAW LLP Simpson Wigle LAW LLP
LEGAL RISK Management Contracts Examples of Risks/Threats (contd): Contract Fulfillment Service Level Agreements (S.L.A.) Terms & Conditions, Covenants, Reps, Warranties Force Majeure Insurance Policies Leases Manage & Mitigate Risks/Threats: Due Diligence Risk & Business Impact Assessments Supply Chain Contracts to include BCP & DRP Policies Document, Document, Document
Simpson Wigle LAW LLP Simpson Wigle LAW LLP 25 LEGAL RISK Management Legal Risk/Threat: Negligence You get Sued!: Civil & Class Actions What is Negligence: Failure to Comply with Standards/Best Practices Duty of Care, Breach of Duty, Forseeable Damages Failure to Anticipate, Warn, Prevent, Respond, Manage & Mitigate (9/11 Commission, Title IX)
26 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Negligence There IS a Duty to Act/Plan for Disasters Inaction is an act of Negligence 27 Simpson Wigle LAW LLP
Simpson Wigle LAW LLP LEGAL RISK Management Negligence Examples of Risks/Threats: World Trade Centre #1(1993): Port Author. 68% Liable! SARS: Nurses v. Ontario Sub-Contractors Manage & Mitigate Risks/Threats: Due Diligence Risk Impact Assessment Standards/Best Practices: NFPA1600/CSA Z1600 Contracts & Policies Document, Document, Document
28 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Regulatory Compliance Legal Risk/Threat: You get sued!: Civil, Regulatory, Criminal Examples of Risks/Threats: Employee Health & Safety (Human Resources) OSHA HIPAA ADA Maple Leaf Foods v. Sunrise Propane 29 Simpson Wigle LAW LLP
Simpson Wigle LAW LLP LEGAL RISK Management Regulatory Compliance Privacy: HIPAA Health Information Privacy Legislation (Ontario: PHIPA): Data: TJ Maxx/Winners; Daimler AG; CIBC Toronto Film Shoot & Snowing Health Records! Laptops: Sick Kids, Toronto Health Information Criminal Code: C-45 Amendments: C-45 Amendment (Canada): Duty to act reasonably + Liability for Directors, Officers, Sr. Management Transpace: Quebec Fantini: Ontario Hammett: Alberta
30 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Regulatory Compliance Manage & Mitigate Risks/Threats: Due Diligence Regulatory Awareness Risk & Business Impact Assessments Standards & Best Practices Contracts & Policies Document, Document, Document 31 Simpson Wigle LAW LLP Simpson Wigle LAW LLP
LEGAL RISK Management Security & Information Technology (I.T.) Legal Exposure: You get sued!: Negligence & Class Actions Examples of Risks/Threats: Security of People, Plant & Products: Disgruntled Empees Data Theft of: Confidential, Empee, Patient, Customer Info. Critical Software Applications Infrastructure: 3 As: data Availability, Accessibility, Accuracy (& Confidentiality) CNC Company: data & software theft Accounting Firm: no phones and email RIM: no service: ONE central server 32
Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Security & Information Technology (I.T.) Manage & Mitigate Risks/Threats: Due Diligence Risk & Business Impact Assessments Standards & Best Practices Contracts & Policies Document, Document, Document
33 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Epidemic/Pandemic: It is More Than You Think!
SWINE FLU: TODAY! SARS Seasonal Influenza E-Coli Norwalk Virus C. difficile Legionnaires Disease Intentional Food Poisoning OR ANY OTHER PANDEMIC/EPIDEMIC! 34 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Pandemic: It is More Than You Think!
Manage & Mitigate Risks/Threats: Due Diligence SPECIAL ISSUES: USUAL Due Diligence, PLUS: Pandemic Risk I.D./Assessment Hygiene Social Distancing Teleworking Flu Season Awareness & Flu Shots Critical Supplies: Antivirals, masks, hygiene supplies Antiviral Stockpiling (Tamiflu, Relenza): Prophylaxis & Treatment
Simpson Wigle LAW LLP Simpson Wigle LAW LLP 35 LEGAL RISK Management Just Do It! The only thing harder than planning for an emergency, is explaining why you didnt
well, thats the last time we joke with the lawyer at a Board meeting about disaster planning... Simpson Wigle LAW LLP Simpson Wigle LAW LLP 36 LEGAL RISK Management My Message to You There is Risk, BUT
Due Diligence is your SAFETY NET! It can save you, your company, AND YOUR $$$! Simpson Wigle LAW LLP Simpson Wigle LAW LLP 37 LEGAL RISK Management ACTION: Getting Started Jay, I heard you can help me with: Risk Assessments Due Diligence stuff
Contracts & Policies In-House Seminars H.R. Stuff 38 Simpson Wigle LAW LLP Simpson Wigle LAW LLP LEGAL RISK Management Questions Jay Rosenblatt Legal Risk Management Advice
Simpson Wigle LAW LLP [email protected] .com Tel: 1-800-434-4414 #301 40
