Category Archives: Risk Management

BUSINESS OWNERS: KEEP THIS CRISIS CONTROL DIRECTIVES IN YOUR FILES: LESSONS FROM UNITED AIRLINES

San Diego, CA, 2017-Apr-18 — /EPR MANAGEMENT NEWS/ — Every company has a crisis from time to time. If the company is small or medium in size, one crisis can take it off the map. Here are some directives that will get you through your next one; share it with your senior staff and don’t read it ‘after’ the event occurred, this should be in memory lest you compete with United for news space.

1. TRY TO RESOLVE IT WITH SOMETHING THAT COMES EASILY TO YOU, THAT YOUR CUSTOMER VALUES. Whatever business you are in, you get your goods or services wholesale (free flights, even on a standby basis). Try to resolve the problem by offering something that has a high perceived value but is not so dear to you that it creates a large loss. The customer is ‘not’ always right, but the customer can write something about you on Yelp and, as it hurts you more to respond, they will ‘seem’ right to the public, who will only read one side of it all.

2. AVOID CALLING THE POLICE (of any kind) FOR A NON-CRIMINAL INCIDENT. Once you try to make the police force your own, and they step in with people who are trained to control others, you will have alienated your client past the point of no return. Worse yet, if the person flails and touches a police officer, he or she now gets a criminal record thanks to you and believe me, you will pay dearly for that. As stupid goes, this is the most stupid move a company can use against a client when the company is not at threat. A disagreement is never resolved when one party is fully armed and the other is afraid of arrest.

3. SHOW THEM WHO THE MANAGEMENT REALLY IS, AND DEMONSTRATE COMPASSION FOR THE SITUATION. If your story makes it to social media, the first response from the CEO should be an instant public apology. The public needs to think of him or her as a nice, warm, empathetic individual who just had the bad luck of hiring someone who had no common sense. Mistakes happen. The public forgives you. If, on the other hand the CEO makes a bad impression or supports his or her staff, regardless of their poor choices, then people will fear the company and avoid it all costs. Do you understand?

4. DO NOT ANGER A CUSTOMER AND THEN ACCUSE HIM OR HER WITH BEING BELIGIRENT. This is a common tactic used by the police to arrest persons. Lawyers use it at trial all the time. You say something inflammatory, the person reacts, and you try to show the jury how unreasonable they are. This is dangerous behavior. Unless you have the powers of arrest, you shouldn’t do something to further anger your customer. If you have an angry customer, you should do everything you can to get them to a reasonable and calm state. The easiest way to do so: Offer something up front, then dine or have drinks with him or her in a casual manner and work out the rest. Using this system you may create the most loyal customer (who refers you business) when you are finished. People understand errors occur: it’s how you handle them.

5. IF YOU CAN’T SAY ANYTHING EMPATHETIC KEEP YOUR MOUTH SHUT. A client/customer may upset you. They are in a heated state due to what happened. Don’t get offended. Many of them don’t even mean what they say in the heat of the moment. If you can avoid internalizing the person’s comments, try to mentally experience the situation from their point of view. The easiest way to do it is not to think of them, but to think of one of your parents, your spouse, or your best friend having gone through this and how you would respond. Now do this with your client.

6. BE CAREFUL WITH YOUR WORDS AND POSITIONING OF YOUR FIRM.
It’s easy to say and do what you want when you have a golden parachute. However, a corporation’s reputation is largely based on the philosophies of the CEO when it comes to customer service. Remember the corporation took care of you and your family when you were looking for a career or opportunity. Now, it needs ‘you’. Do everything with all the integrity the company deserves, even if you have to bite your lip in doing so.

7. MAKE CONTACT WITH THE AGGRIEVED PARTY ASAP. Call the person, arrange a personal contact and work things out. Do not let it get to the media or to a lawyer’s office. Let the person hear from you and know that you care. The difference it will make is phenomenal. It does not matter that you are on vacation when it takes place or even sleeping. You are better off losing a night’s sleep than months of sleep in the future while your and you company’s reputation are in the balance. Don’t just contact the party, make this up to them. For example, in the United Airlines’ case, I would have put Dr Dao on a private jet asap, with a limousine waiting at the other end. The scenario would have turned out very differently.

8. WORK IT OUT BEFORE IT BECOMES A LAWSUIT.
If a situation is so out of control that a lawyer has been hired or litigation is threatened, resolve it immediately through opposing counsel. Negotiate and work out a settlement or understanding of some sort. Keep the settlement confidential if you have to, or be generous and go public with it; especially if you are in the wrong. The worst thing that can happen in this case is what happened with United Airlines: the lawyer was enjoying free national airtime to say what he wanted.

If a lawyer has been hired, you did not follow the rules above very well. Once the legal game is in play, in will only serve to infuriate the customer more and the legal game is all about sides. At this point, hope the party has a reasonable lawyer as you can no longer directly communicate with the person. Litigation is one of the worst diseases a company can catch, avoid it at all costs.

We hope your next crisis is averted rapidly and wish you the best!

________________________________

Steven Riznyk is the CEO and senior litigator of San Diego Biz Law, a crisis-negotiator, and business strategist who is hired to analyze and resolve complex and crisis issues worldwide. He can be reached at 619-793-4827.

SanDiegoBizLaw.com
Contact: Amanda Berkshire
San Diego: (619) 793-4827
Email: ab@Worldwide-Press.com

Via EPR Network
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RiskPortal.net – Online Risk Management For Teams

Risk management is often seen as a task of specialized risk consultants or project managers. RiskPortal.net makes risk management a team effort with an easy to use online risk application (SaaS, Software as a Service).

RiskPortal.net - Online Risk Management For Teams

Riskmanager
An entire team can access, add and edit its project risks online using an internet browser and devise measures to optimize them. RiskPortal.net creates transparency: it shows who is responsible for which risks and also shows what progress is being made to implement measures.

Risk analysis
Riskmanager enables team members to analyze risks visually. Using digital sticky notes, a team member creates a picture of the effects and causes of a particular risk and the impact it has in terms of money, lead time and quality. These bowtie shaped pictures are the basis for effective responses which can be attached to the risk sticky notes. See http://riskportal.net/help/analyse-risks/en-us/ for the online introduction video on risk analysis.

Prices
The fee for Riskmanager is based on the number of active projects of a customer. The number of people that can access a project is unlimited. The fees per subscription type are listed below:
-Project Edition: 1 project for 95 Euros per month or 129 US Dollars per month
-Team Edition: 10 projects for 495 Euros per month or 695 US Dollar per month

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DOT Compliance Challenge Program

Optima Associates, Inc., an operations, risk and asset management consulting firm based in De Pere, Wis., has come up with a new way to assist motor carriers with DOT compliance. The company will provide a simulated DOT motor carrier safety audit and waive its consulting fees for any motor carrier that can score a satisfactory rating in each of six audit factors.

Optima will conduct a full DOT compliance review using the motor carrier safety fitness criteria from Part 385 of the federal regulations, as well as the latest audit procedures published in the Federal Motor Carrier Safety Administration’s Field Operations Training Manual.

For motor carriers that accept Optima’s challenge and score a satisfactory motor carrier safety rating in all six audit factors, the company will waive its usual consulting fees. In these instances, motor carriers will only be charged for expenses incurred by Optima in the course of conducting a DOT compliance audit.

If a motor carrier scores an overall satisfactory rating but has a conditional rating in two or fewer factors, the carrier will pay 60% of Optima’s consulting fee in addition to expenses.

Jeff Simon, a senior compliance consultant at Optima, says the company’s DOT Compliance Challenge is a way to reward companies that are in compliance with DOT regulations.

“The companies that consistently do things right and that play by the rules can really benefit from this program. This is a way for them to get, at a nominal, expenses-only cost, an objective, outside review from a qualified DOT consultant to ensure that they’re in full compliance,” he says.

Simon explains that the program is designed to assist both for-hire motor carriers and private fleets. “This program is intended for motor carriers and fleets that are new toOptima and that are interested in receiving a systematic, professional review of theirDOT compliance efforts from an outside consultant.”

Simon notes that Optima’s transportation consultants have conducted simulated DOT compliance audits for hundreds of clients. “Our five DOT consultants each have at least 30 years of experience working in all aspects of the transportation business.”

According to Simon, the launching of this program is especially timely considering the ongoing trend in aggressive enforcement taken by the DOT. “In recent years there has been a shift from education to enforcement. The DOT’s stance is that motor carriers are responsible for knowing the regulations. Ignorance is no excuse. Carriers who are found in violation of the regulations will be fined, and the fines can quickly run into the thousands of dollars.”

Simon maintains that full DOT compliance is absolutely essential. “In the long run, it saves many times more than it costs, especially when considering the possibility of a lawsuit over an accident or incident caused by being out of compliance.”

Simon adds that the DOT’s database publicizes motor carrier safety ratings and evaluations, and these scores are available to customers, insurance carriers, financial institutions, lawyers and the general public. “This is one more reason why full compliance is critical and why regular DOT compliance audits are especially important.”

About Optima Associates, Inc.
Located in De Pere, Wis., Optima Associates is a personalized consulting firm that provides operations, risk and asset management consulting services. Optima helps clients accelerate performance leading to improved business results. To learn more aboutOptima Associates, visit
www.optimatcp.com

 

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