crisis management


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Crisis Management Concepts


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1 Crisis Management By Milton Roberto de Almeida

Crisis Management:

2 Crisis Management Be prepared ! Expect the Unexpected . By Milton Roberto de Almeida

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“When planning for a crisis, it is instructive to recall that Noah started building the Ark before it started to rain.” Norman Augustine

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4 COURSE OBJECTIVES By Milton Roberto de Almeida The purpose of the course is to: describe the principles and processes of crisis and risk management give practical guidance on designing a suitable framework for crisis management give practical advice on implementing enterprise risk management

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5 COURSE CONTENT About course Vision, Mission, and Quality objectives Crisis Management concepts Crisis Prevention and Response Teamwork Behavior and knowledge By Milton Roberto de Almeida

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6 Brief Overview of Crisis Management Literature Etc. By Milton Roberto de Almeida

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7 A key difficulty and major concern is how to move from “the rhetoric of conflict prevention to one of institutionalized practice” (Ackermann, 2003, p. 339). By Milton Roberto de Almeida

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8 Proposed Research Goals and Questions The primary research goals of this thesis are as follows: Determine seminal authors within of crisis management Determine influential manuscripts, journals, books and book series. Identify key areas of crisis management literature Identify and classify key fields of study within crisis management literature Provide a mapping tool to display seminal authors with respect to their specific field of study within crisis management Provide an all accessible, user-friendly interface available to researchers and individuals interested in crisis management literature Citation analysis is an effective process to identify seminal authors and key areas of study within a field of literature. By Milton Roberto de Almeida

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9 Suggested bibliography Crisis Management: Planning for the Inevitable by Steven Fink (Jun 19, 2000) Managing Crises Before They Happen: What Every Executive and Manager Needs to Know about Crisis Management by Ian I. Mitroff and Gus Anagnos (Jun 5, 2005) Crisis Leadership Now: A Real-World Guide to Preparing for Threats, Disaster, Sabotage, and Scandal by Laurence Barton (Dec 20, 2007) By Milton Roberto de Almeida

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10 Meeting opener exercise Drawing Atividade # 1 By Milton Roberto de Almeida

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11 Definitions and Concepts By Milton Roberto de Almeida

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12 EMERGENCY AND RISK MANAGEMENT deal primarily with NATURAL disasters. EMERGENCY, RISKS, AND CRISIS MANAGEMENT By Milton Roberto de Almeida CRISIS MANAGEMENT deals mainly with MAN-MADE or HUMAN-caused crises, such as: Computer hacking, environmental contamination, executive kidnapping, fraud, product tampering, sexual harassment, and workplace violence. Ian Mitroff Managing Crises Before They Happen

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13 Unlike natural disasters, human-caused crises are not inevitable. They do not need to happen. For this reason, the public is extremely critical of those organizations that are responsible for their occurrence.

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14 Crises are no longer an aberrant, rare, random, or peripheral feature of today’s society. They are built into the very fabric and fiber of modern societies. All of us everywhere are impacted daily by crises larger or small. Ian Mitroff Managing Crises Before They Happen

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15 The vast majority of organizations and institutions have not been designed to antecipate crises or to manage then effectively once they have occurred. Neither the mechanisms nor the basic skills are in place for effective Crisis Management.

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16 Most organizations still do not understand the “new management and thinking skills” required to head off crises. CM is broader than dealing with crises alone. It provides a unique and critical perspective on the new management skills and the new types of organizations that will be required in the 21st century. Ian Mitroff Managing crises before they happen

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17 ORGANIZATIONAL DEFENSE MECHANISMS By Ian Mitroff ( Denial ) Crises only happen to others . We are invulnerable . ( Disavowal ) Crises happen , but their impact on our organization is small . ( Idealization ) Crises do not happen to good organizations

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18 ( Grandiosity ) We are so big and powerful that we will be protected from crises. ( Projection ) If a crisis happens , it must be because someone else is bad or out to get us.

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19 ( Intellectualization ) We don’t have to worry about crises since the probabilities of their occurring are too small . Before a crisis can be taken seriously , one would have to measure precisely its odds of occurrence and its consequences ( Compartmentalization ) Crises cannot affect the whole of our organization since the parts are independent one of another .

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20 RESPONSE crisis RECOVERY BUSINESS DIES BUSINESS DEVELOPMENT CONFORT TIME (If a business is prepared for crisis) Business Life Cycle CRISIS: A rupture or changing moment. Webster’s defines a CRISIS as a “turning point for BETTER or WORSE” ; as a ‘decisive moment” or “crucial time.” By Milton Roberto de Almeida

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21 Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation , especially from the moment it first occurs to the point that recovery procedures start. DEFINING CRISIS MANAGEMENT By Milton Roberto de Almeida

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22 Crisis management is defined as helping avert crises or more effectively manage those that occur. By Milton Roberto de Almeida

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23 Crisis Management Objectives General objectives of any interorganizational crisis response network: ANTICIPATION A commitment to analyzing, attempeting to predict, forewarn, and steer clear of emerging crises. PREPARATION Providing the planning, training, and collective responsibilities prior to a crisis. RESPONSE Actually implementing the collective resolution arm when a crisis occurs. WISDOM Learning tpgether from the event in order to prevent, lesson the severity of, or improve upon responses to future crises.

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24 CRISIS Prevention Response Recovery OBJECTIVES - DOCTRINES Rules to follow ORGANIZATION Structure and Processes TRAINING Learning RESOURCES People, Money, Equipments CULTURE Values, behaviours LEADERSHIP Responsibility Performance Architecture Crisis Management framework By Milton Roberto de Almeida

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25 Crisis Management Five-phase sequence describes how crisis are handled among “best case” organizations or networks. 1 – Signal detection phase 2 – Preparation 3 – Damage containment 4 – Recovery 5 - Learning

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26 Crisis Variables Intensity Refers to the number of problems evident in a particular crisis. Intensity measures the number, not the variety of types, of problems encountered. Complexity A crisis’s complexity rating measures the number of dimensions that a crisis crosses. Complexity is concerned with the different types of problems in the same emergency. Familiarity The familiarity rating of a crisis is determined by the frequency of occurrence of the particular crisis in the resolution network. Michael J. Hillyard Public Crisis Management

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27 WHY CRISIS ARE INEVITABLE AND PERMANENT FEATURE OF MODERN SOCIETIES We live in a world: Volatile. Uncertain. Complex Ambiguous . Changes never stop. Political Economic Military Social Technology Environment By Milton Roberto de Almeida

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28 THREATS By Milton Roberto de Almeida

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29 Sudden Crisis A sudden crisis is defined as: A disruption in the company's business which occurs without warning and is likely to generate news coverage, including fires, explosions, natural disasters and workplace violence and may adversely impact: Employees, investors, customers, suppliers or other publics Offices, plants, franchises or other business assets Revenues, net income, stock price, etc. Reputation--and ultimately the good will listed as an asset on the balance sheet By Milton Roberto de Almeida

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30 A sudden crisis may be: a. A business-related accident resulting in significant property damage that will disrupt normal business operations b. The death or serious illness or injury of a manager, employee, contractor, customer, visitor, etc. as the result of a business-related accident c. The sudden death or incapacitation of a key executive d. Discharge of hazardous chemicals or other materials into the environment Sudden Crisis By Milton Roberto de Almeida

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31 e. Accidents that cause the disruption of telephone or utility service f. Significant reduction in utilities or vital services needed to conduct business g. Any natural disaster that disrupts operations, endangers employees h. Unexpected job action or labor disruption i.. Workplace violence involving employees/family members or customers Sudden Crisis By Milton Roberto de Almeida

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32 A smoldering crisis is defined as: Any serious business problem that is not generally known within or without the company, which may generate negative news coverage if or when it goes "public" and could result in fines, penalties, legal damage awards, unbudgeted expenses and other costs Smoldering Crisis By Milton Roberto de Almeida

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33 Examples of the types of smoldering business crises that would prompt a call to the Crisis Management Team would include: Sting operation by a news organization or government agency b. Safety violations which could result in fines or legal action c. Customer allegations of overcharging or other improper conduct d. Investigation by a federal, state or local government agency e. Action by a disgruntled employee such as serious threats or whistleblowing f. Indications of significant legal/judicial/ regulatory action against the business g. Discovery of serious internal problems that will have to be disclosed to employees , investors , customers , vendors and / or government officials . By Milton Roberto de Almeida

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34 In some instances crisis situations may be either sudden or smoldering , depending on the amount of advance notice and the chain of events in the crisis. Examples would include: Anonymous accusations Competitive misinformation Confidential information disclosed Equipment, product or service sabotage Misuse of chemical products Industrial espionage Disgruntled employee threats Investigative reporter contact

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35 Employee death or serious injury Employee involved in a scandal Labor problems Extortion threat Security leak or problem False accusations Severe weather impact on business Incorrect installation of equipment Sexual harassment allegation Special interest group attack Strike, job action or work stoppage Terrorism threat or action Illegal or unethical behavior of an employee Major equipment malfunction Nearby neighbor, business protest

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36 Myths in Business Crisis Management The stereotype of business crises is industrial accidents, oil spills and bizarre crimes like terrorist bombings or the Tylenol incident. ICM's analysis of business crises since 1990 indicates these 'no-warning' crises are the minority. The majority are smoldering crises. In other words management knows about them before they go public. By Milton Roberto de Almeida

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37 Another fallacy is that most crises are caused by employee errors or natural disasters. The reality is that most newsworthy business crises are the results of management decisions, actions or inaction.

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38 Crisis Categories Compared By Milton Roberto de Almeida

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39 By Milton Roberto de Almeida

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40 By Milton Roberto de Almeida Crisis Management and TRM Team Resources Management

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41 The accident had a large influence on the industry, particularly in the area of communication. Less experienced flight crew members were encouraged to challenge their captains when they believed something was not correct, and captains were instructed to listen to their crew and evaluate all decisions in light of crew concerns. This concept would later be expanded into what is known today as Crew Resource Management . CRM training is now mandatory for all airline pilots. The Tenerife airport disaster occurred on March 27, 1977, when two Boeing 747 passenger aircraft collided on the runway of Los Rodeos Airport (now known as Tenerife North Airport ) on the Spanish island of Tenerife , one of the Canary Islands . With a total of 583 fatalities, the crash is the deadliest accident in aviation history . By Milton Roberto de Almeida

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42 The offshore oil industry has traditionally functioned with a teamwork culture and many operations are managed by crews, shifts and groups working together. This course is based in a particular type of crisis management and operational philosophy and team training called crew resource management (CRM) which was developed by the aviation industry for flight deck crews but which is now being used in other domains, such as in merchant navy ships (e.g. Braathens-SAFE) and hospital operating theatres. CRM now is called, for several industries, TRM – Team Resources Management TEAM RESOURCES MANAGEMENT By Milton Roberto de Almeida

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43 A US Airways jetliner crashed into the frigid Hudson River after a collision with a flock of birds disabled both its engines, sending more than 150 passengers and crew members scrambling onto rescue boats. Flight 1549 had just taken off from LaGuardia Airport en route to Charlotte, N.C., when the crash occurred in the river near 48th Street in midtown Manhattan. Miraculously, there were no deaths or serious injuries. Was this luck? Was God looking over the crew and patients on board? Maybe. But why did this event have a happy ending? Crew Resource Management . By Milton Roberto de Almeida

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44 The CRM training approach has been adapted for use in industrial settings such as nuclear plants and offshore oil installations, particularly in control rooms and emergency command centres. In essence, CRM involves enhancing team members' understanding of human performance, in particular the social and cognitive aspects of effective teamwork and good decision making. According to Wikipedia, Crew (or Cockpit) Resource Management (CRM) training originated from a NASA workshop in 1979 that focused on improving air safety. By Milton Roberto de Almeida

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45 CRM beyond aviation Further evidence of the success of CRM comes from the Danish company Maersk,. They introduced Crew Resource Management for their mariners in 1994, and have been running Rig Crew Resource Management since 1997 (Byrdorf, 1998). Incidents and accidents in Maersk shipping company have decreased by a third from one major accident per 30 ship years in 1992 (before the introduction of CRM training) to one major accident per 90 ship years in 1996 (after the introduction of CRM training). In addition, at the beginning of 1998 all insurance premiums were lowered by 15 percent. They attribute this reduction in accidents and incidents to combined use of CRM and simulator training. CRM training has been adopted by a number of other professions including anaesthetists (Howard et al., 1992), air traffic control, the nuclear power industry (Harrington & Kello, 1991), and aviation maintenance (Marx & Graeber, 1994). By Milton Roberto de Almeida

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47 Concepts for Crisis Management By Milton Roberto de Almeida

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48 THE CRISIS-READY COMPANY By Milton Roberto de Almeida

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49 49 Only 6% survived after a disaster. Are you prepared? Is your company prepared for crises? By Milton Roberto de Almeida

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50 Crisis and Organizational Resilience NORMAL SITUATION CRISIS SITUATION Organizational Power

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51 CRISIS FORECASTING “Everyone talks about the weather, but no one does anything about it” - Mark Twain What are the five worst things that could happen to your organization? 1 _______________________ 2 _______________________ 3 _______________________ 4 _______________________ 5 _______________________ By Milton Roberto de Almeida

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52 THINKING FAR OUTSIDE OF THE BOXES By Milton Roberto de Almeida

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53 Exercício X Adicionando UMA LINHA, transformar o X em...

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54 ASSESSING YOUR CRISIS RISK By Milton Roberto de Almeida

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55 SITUATIONAL AWARENESS By Milton Roberto de Almeida

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56 56 PERCEPTION AND STRATEGIC THINKING Like a filter, mental processes build a perception of reality Experience, Education, Values, Culture, Organizational rules, Strategic thinking, Quality of information REALITY PERCEPTION Ex.: Ciclone Catarina By Milton Roberto de Almeida

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57 Do you see the old or the young woman?

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58 The wheel is moving, isn’t it? By Milton Roberto de Almeida

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59 O Ciclone ou Furacão Catarina 29/Março/2004 – O ciclone extratropical Catarina, que atingiu a região sul do país, o fez com a intensidade de um furacão. Segundo autoridades locais, sua passagem deixou pelo menos 3 mortos e 100 mil casas destruídas. (...) Segundo a GloboNews , a Defesa Civil de Torres havia proposto a evacuação da cidade, mas o Ministro Ciro Gomes, da Integração Nacional, não autorizou, dizendo que os ventos seriam mais fracos que o previsto. Não foram. Fonte: There are no threats . Wrong perceptions may kill people. By Milton Roberto de Almeida

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60 Wrong perceptions may kill you. LOOK OUT! By Milton Roberto de Almeida


61 TEAM, TEAMWORK AND LEADERSHIP By Milton Roberto de Almeida

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62 The notion that effective teamwork is an essential component of organizational performance has now pervaded management practice, and teams, of different types and varying degrees of competence, can be found in abundance from the shopfloor to the boardroom. TEAMWORK By Milton Roberto de Almeida

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63 By Milton Roberto de Almeida

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64 LEADERSHIP Leadership has been considered one of the most important elements affecting organizational performance. By Milton Roberto de Almeida

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65 Leadership as an influence process Influence may be defined as the ability of one person to alter the behavior of another person. This influence may be formal or informal (not prescribed by the organization in terms of position or authority. By Milton Roberto de Almeida

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66 By Milton Roberto de Almeida

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67 Toxic leaders kill teams and organizations! “I’m tired of being the only one who does anything!” “You’re incompetent.” “If you make me look bad again, I’ll make your life miserable.” “You’re not a team player.” By Milton Roberto de Almeida

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68 DECISION MAKING By Milton Roberto de Almeida

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69 Situational Awareness Company Resources Scenarios Strategic or Operational Decision Doctrine Organization Training Leadership Materials Personnel Facilities Planning Framework: a decision aid By Milton Roberto de Almeida

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70 Communication is considered as na interpersonal process that results in the exchange of information. Communication is necessary for effective decision making. It is fundamental to the implementation of decisions. COMMUNICATION By Milton Roberto de Almeida

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71 ASSERTIVENESS By Milton Roberto de Almeida

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72 By Milton Roberto de Almeida

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73 There are four communication styles that exist along a continuum from which you can choose no matter the situation. Each style honors different parties’ rights and each brings about a different outcome. 1.Passive: Not standing up for yourself, or ineffectively doing so that your rights are easily violated; you allow others' rights to be more important than your own and cave in to others’ wants and needs denying your own; 2.Aggressive: Standing up for yourself in a way that violates the rights of others; you’re concerned with getting what you want without concern about others getting what they need; 3.Passive-aggressive: The indirect expression of anger or frustration; it appears passive and non-hostile but you sabotage the other person; you’re too indirect to assert your own needs so communicate in a manipulative way, like through gossiping in a covert attempt to defend your rights; 4.Assertive: Standing up for yourself in a way that respects the rights of others; you’re direct, honest and appropriate in expressing your feelings and opinions; By Milton Roberto de Almeida

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75 Assertive people accept others’ rights are as important to them as yours are to you. When rights collide the assertive assumption is that you'll negotiate in a way that helps everyone get their most important needs met and their rights respected, which is easier said than done. By Milton Roberto de Almeida

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77 STRESS By Milton Roberto de Almeida

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78 By Milton Roberto de Almeida

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79 By Milton Roberto de Almeida

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80 Tools and Techniques By Milton Roberto de Almeida

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81 SIMULATIONS A simulation can take many forms, from real-life case studies to an engine failure on a passenger jet. By Milton Roberto de Almeida

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82 TABLETOP EXERCISES - TTX A tabletop exercise simulates an emergency situation in an informal, stress-free environment. The participants can be either people on a decision-making level, veterans of the organization, or new members, who gather around a table to discuss general problems and procedures in the context of an emergency scenario. The focus is on training and familiarization with roles, procedures, or responsibilities. No plan? No tools? No problem! A TTX is also a great way to build a response plan based on input from the exercise and can be accomplished with some basic preparation (just like a lesson plan) and without any special equipment. By Milton Roberto de Almeida

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83 Designing a TTX is Simple! There are eight simple steps you can use to design a TTX: Assess your needs Define the scope Write a statement of purpose Define TTX objectives Compose a narrative Write major and detailed messages List expected actions Prepare messages By Milton Roberto de Almeida

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84 AAR – AFTER ACTION REVIEW By Milton Roberto de Almeida

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85 By Milton Roberto de Almeida

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87 By Milton Roberto de Almeida

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88 The End ? Never By Milton Roberto de Almeida

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