Community Awareness Emergency Response (CAER)

Emergency Preparedness & Climate Change:Evaluating and dealing with risk.

(Business perspective)

HIEA PresentationApril 2, 2014Chris Anderson

About Hamilton CAERCommunity Awareness

and Emergency Response (CAER)

a community-based volunteer organization established in 1980

Membership Air Liquide ArcelorMittal Dofasco Biederman Packaging Columbian Chemicals Canada City of Hamilton – Emergency, Fire

and Police Services Fanchem Ltd. First Response Environmental Hamilton Port Authority Itech Environmental

McAsphalt Newalta Quantum Murray Ruetgers Canada Tennier Sanitation U. S. Steel Canada – Hamilton Vopak Westway Terminals

CAER’s Mission

1. Prepare2. Cooperate

3. Communicate

CAER’s Mission #1Prepare…

… to encourage the development and maintenance of effective emergency response plans within Hamilton through information sharing and special projects

CAER’s Mission #2Cooperate…

… to facilitate the co-ordination of industrial emergency response plans with community and governmental emergency planning services.

CAER’s Mission #3Communicate…

… to provide a means for local industry to inform the community of the steps taken to prepare and prevent emergencies, thereby increasing awareness to minimize the risks to people, property and the environment should an emergency occur.

Company Example

• Established in 1912 – Dominion

Steel Castings

• Acquired in January 2006 by Arcelor

• Integration of Dofasco into

ArcelorMittal Flat Carbon Americas

began February 2007

• Canada’s largest producer of flat

rolled steels

• Leading supplier to automotive

• Manufacturing focused in the Great

Lakes Region (Hamilton, Windsor,

Montreal)

ArcelorMittal Dofasco

Coke Making3 Batteries

Iron Making3 operational blast furnaces

Steel Making1 Electric Arc Furnace

1 Basic Oxygen Furnace

2 Casters

Rolling1 Hot Strip Mill

Cold Rolling2 Pickle lines

1 Tinning Line

4 Galvanizing Lines

1 Galvalume

Property750 acres

In a major urban centre

Our Hamilton facilities

What If: It’s a hot and humid weekday afternoon in August.

A severe storm system is progressing through Ontario, towards Hamilton.

Tornados watches and warnings have been issued by Environment Canada.

Severe weather cells are now close, as seen by on-line radar images.

AMD Response: Who is formally monitoring the weather situation for EM & BC purposes?

How would we respond if this scenario occurred today?

How should we be responding, to safeguard employees & fixed / mobile assets?

How, what and when should we be communicating to employees?

If there was damage to manufacturing or office assets, how would we respond?

How, what and when would we communicating externally if injury or damage?

Emergency ManagementAn ongoing process to prevent, mitigate, prepare for,

respond to, and recover from an incident that threatens life,

property, operations, or the environment.

Business ContinuityAn ongoing process supported by senior management and

adequately funded to ensure that the necessary steps are taken

to identify the impact of potential losses and maintain

viable recovery strategies and recovery plans for the

continuity of services and operations, following a disruptive

event.

Organizations must prepare for both emergencies and the resulting risks to the

sustainability of the business.

13

Emergency and Crisis Management• Get situation under control

Incident

time

Prepare Respond

Risk Management• Continuously improve preparedness

Business Continuity• Recover Business

EM & BC Incidents threaten life, environment, property or operations.

The impact of these incidents can be mitigated through adequate planning.

Note: Best practice standard;

now incorporated into

Canadian Standards

Association (CSA Z1600)

Emergency Management & Business Continuity Planning

Disaster-related Plans

Crisis Communications Plan“accurate, timely information to stakeholders”

B.U. Departmental Contingency Plans“specific disruption/failure”

Business Continuity Plan“critical process & operations recovery, company-wide

basis”

I.T. Disaster Recovery Plan“IT infrastructure recovery, company-wide basis”

Major Emergency Response Plan (MERP)“prevent loss of life, minimize injury/property damage”

Adapted from ©2006 DRI International

Pandemic Influenza Plan“maintain critical operations with increasing

absenteeism”

Emergency / Critical Diesel Refueling Plan“maintain critical operations & emergency generators

during diesel fuel outages”

Major Production Outage / Capacity Disruption

Response Template“maintain steel customer orders through alternate internal / external

production processes”

Shipping Capacity Disruption

Response Template“maintain critical customer shipping orders”

Under development:

•Mass Evacuation Plan

•Shelter-in-Place Plan

•Active Shooter Plan

Manufacturing

Coordinator(s) *GM, Manuf. (TBD

on circumstances)

Manufacturing

Coordinator(s) *GM, Manuf. (TBD

on circumstances)

• Backups required for each roleEmergency &

Crisis Coordinator*

QMC Chairperson

Medical

Coordinator *Mgr, Integrated

Health

Communication

Coordinator *VP, Corp. Comm.

and Public Affairs

H&S

Coordinator

Mgr, Health &

Safety

Environment

Coordinator *

GM, Environment

Security & Fire

Coordinator *Mgr, Loss

Prevention

* Denotes roles required by AM

Emergency Management

Guidelines. See AM 016.

Balance of QMC

members,

representing:

• E.M.T.

• Financial

• Purchasing

• I.S.

• Manuf. Tech & P.A.

• Metallurgy

• Sales & Marketing

• Customer Service

+ other Commercial

reps. as required.

HR / Logistics /

Infrastructure

Coordinator *GM, Core Services

Sponsor

Executive Team

Legal

Coordinator *VP, HR / Corp.

Admin

AM Corporate

Crisis Management

Team

External Agencies /

Organizations

• Ministry of Labour

• Ministry of

Environment

• City of Hamilton

• Marine Commerce

Resumption

• Fire Dept.

• Local Health

Integr. Network

• Public Health

• Ont. Occup. Health

Nurses Assoc.

Emergency & Crisis

Risk Management Coordinator

Chris Anderson

Risk Management

Functional Area Leads

• Security (Chief)

• Fire Dept. (Chief)

• Integrated Health (Manager)

• Health & Safety (Manager)

• Human Resources (GM, Core Serv)

• Financial (Mgr, Cash & Banking)

• IT (Demand Mgmt rep.)

• PA (GM, PA)

• Procurement (Mgr, Procur. Process)

• Order Fulfillment (Mgr, Order

Planning and Commercial Tech.)

• Environment (Mgr, Env. Mgmt Sys)

• Corp. Comm. & Public Affairs (Mgr)

• Manufacturing (GMs)

Process Owner

QMC

Supports Emergency & Crisis

Coordinator & Team during incidents

This part of the structure will sustain and improve our preparedness.

This part of the structure will respond to Emergencies and Crises.

Financial H&S Env. Customer

ImpactOver $100m Multiple fatalities

and/or extensive

health impact to

employees

4 in AMD Env.

Risk Mgmt

framework

Permanent loss

of customers

and reputation

5. Critical

Up to $100m 1 fatality and/or

serious health

impact to several

persons

3 in AMD Env.

Risk Mgmt

framework

Major impact to

customers and

reputation

4. Major

Up to $30m Injuries to several

persons

2 in AMD Env.

Risk Mgmt

framework

Moderate impact

to customers

and reputation

3. Moderate

Up to $10m Injuries to 1 person 1 in AMD Env.

Risk Mgmt

framework

Minor impact to

customers and

reputation

2. Minor

Up to $3m No injuries 0 in AMD Env.

Risk Mgmt

framework

No impact 1. Negligible

1 (0%-10%) 2 (11%-30%) 3 (31%-50%) 4 (51%-90%) 5 (91%-100%)

Very Low Low Moderate High Very High

Imp

act

Likelihood / Probability

Risk Matrix

We customized an AM Risk Matrix for defining probabilities & impacts of

hazards. Probabilities are within a 0-10 year time frame.

The risk areas and

hazards we

identified align well

with global risks as

presented at the

World Economic

Forum.

Emergency Management & Business Continuity

World Economic Forum

Global Risk Landscape 2013

The risk areas and hazards

we identified in 2011 still

align well with global risks as

presented at the 2013 World

Economic Forum.

World Economic Forum

Global Risks 2014

5. Critical

4. Major

3. Moderate

2. Minor

1. Negligible

1 (0%-10%) 2 (11%-30%) 3 (31%-50%) 4 (51%-90%) 5 (91%-100%)

Very Low Low Moderate High Very High

Imp

act

Likelihood / Probability

Risk Matrix

H&S

1. Pandemic / Epidemic

IT

2. Main Office Unavailable

3. Main Office & DQC Unavailable

4. Manuf. control system IT security

Natural Disaster

5. Earthquake

6. Tornado

7. Winter Storm

8. Extreme Heat / Cold

Supply Chain

9. Raw Materials (incl. production materials)

10. Outside Processing

11. Natural Gas

12. Electricity

13. Industrial Gases

14. Transportation Infrastructure

Environment

15. Harmful Substance Release - Int.

16. Harmful Substance Release - Ext.

Property

17. Radioactive Material

18. Fire / Explosion

19. Marine accident

20. Aircraft accident

Security

21. Internal Threat

22. External Threat

Production

23. Major Production Outage

1

2

3, 5,

10, 11, 12

14, 15, 16, 17

19,20,21,22,23

7, 8

6, 13

18

Collectively, the ratings for all hazards form a heat map.

9

4

Emergency Management & Business Continuity

Major

Emergency

Response

Plan

To provide for the maximum possible protection of all employees and visitors on site and the public in the event of a major emergency or crisis.

To minimize property damage and losses.

To enable a rapid recovery from the impacts of a major emergency, crisis or disaster.

To promote planning and establishment of contingencies for foreseeable impacts from major emergencies, crises or disasters.

To coordinate the efforts of employees and departments for an effective response to all threats.

On-Site Emergency Response Team

25

Manufacturing

Coordinator(s) *GM, Manuf. (TBD

on circumstances)

Manufacturing

Coordinator(s) *GM, Manuf. (TBD

on circumstances)

Crisis Coordinator*(Respond)

Chair, QMC

Medical

Coordinator *Mgr, Integrated

Health

Communication

Coordinator *VP, Corp. Comm.

and Public Affairs

H&S

Coordinator

Mgr, Health &

Safety

Environment

Coordinator *

GM, Environment

Security & Fire

Coordinator *Mgr, Loss

Prevention

Balance of QMC

members,

representing:

• E.M.T.

• Financial

• Purchasing

• I.S. & P.A.

• Metallurgy

• Sales & Marketing

• Customer Service

+ other Commercial

reps. as required.HR / Logistics /

Infrastructure

Coordinator *GM, Core Services

Sponsor

Executive Team

Legal

Coordinator *VP, HR / Corp.

Admin

AM Corp. Crisis

Management

Team

External Agencies /

Organizations

• Ministry of Labour

• Ministry of

Environment

• City of Hamilton

• Marine Commerce

Resumption

• Fire Dept.

• Local Health

Integr. Network

• Public Health

• Ont. Occup. Health

Nurses Assoc.

Emergency & Crisis

Risk Management Coordinator

(Chris Anderson)

EM & BC

Process Owner

QMC

Supports Crisis Coordinator &

Crisis Mgmt Team during incidents

Emergency

Operations

Center

Public Affairs

Coordination

Room

Main Office 4th Floor

Key

Emergency Operations

Center: Board Room

Public Affairs Coordination

Room: Teleconferencing Room

Breakout Rooms:

4th Fl General

Exec. Board room

Severe Weather Alerts:

•Tornado warnings within 3 miles

•Null tornado warnings

•High winds >50mph

•Lightning within 10 miles

•Flash flood

•Severe winter conditions

•Snow & ice warnings

AccuWeather / SkyGuard

Weather monitoring / AlertsLocation specific (10 mile radius)

The process of developing a business continuity program to:

resume critical operations within a specified time period after a disaster

continue essential services availability

minimize financial loss

protect clients / customers / community interests

expedite the restoration of services

RiskAnalysis

BCP Planning Process

ProgramManagement

Business ImpactAnalysis (BIA)

Continuity &Recovery Strategies

OperationsPlan

Awareness& Training

Maintenance& Updating

BusinessContinuity Plan

Scenarios& Testing

Adapted from ©2006 DRI International

ARCELORMITTAL

DOFASCO

PANDEMIC

PLAN

Business Continuity Plan

[Department Name]

RESTRICTED CIRCULATION

Owner: Department Continuity

Coordinator

[Name]

Arcelor Mittal Dofasco Inc. -

Confidential

© AM Dofasco Inc. 2013

Assess Market Impact

Is there a market impact?

Assess options for an internal(AMD) solution

Is there an internal

solution?

Assess options for an external solution

(including AM-USA, Outside Processors, AM

Is there an external solution?

Initiate processes to finalize plans & implement

solution(s)

Update sales & operations plan and address impact to

customers affected

END

No

Yes

Yes / Partial

No

Yes / PartialNo

Supply Chain MgtManufacturing Mgt

Commercial MgtCapacity Planners

Commercial MgtCapacity PlannersSales, Mfg, Finance Reps

Commercial MgtAM-USA Corporate Planning & MktingAM Corporate RepsOutside Processing Reps

Commercial MgtSales Reps

END

Process Owners

An internal throughput-related Sentinel Event has occurred OR

similar significant event has occurred at DJG, CdL, Baycoat

or Taylor Steel. Process Owner kicks-off

process.

Collect details of event (including affected operation(s),

outage duration, modified capability, etc.

Supply Chain MgmtManufacturing Management

START (A)Internal Sentinel

Event Coordinator

START (B)Name of role(s) that will know 1st about

an OP/JV event

Process Owner =??? role ???

Assess Market Impact

Is there a market impact?

Assess options for an internal(AMD) solution

Is there an internal

solution?

Assess options for an external solution

(including AM-USA, Outside Processors, AM

Is there an external solution?

Initiate processes to finalize plans & implement

solution(s)

Update sales & operations plan and address impact to

customers affected

END

No

Yes

Yes / Partial

No

Yes / PartialNo

Supply Chain MgtManufacturing Mgt

Commercial MgtCapacity Planners

Commercial MgtCapacity PlannersSales, Mfg, Finance Reps

Commercial MgtAM-USA Corporate Planning & MktingAM Corporate RepsOutside Processing Reps

Commercial MgtSales Reps

END

Process Owners

An internal throughput-related Sentinel Event has occurred OR

similar significant event has occurred at DJG, CdL, Baycoat

or Taylor Steel. Process Owner kicks-off

process.

Collect details of event (including affected operation(s),

outage duration, modified capability, etc.

Supply Chain MgmtManufacturing Management

START (A)Internal Sentinel

Event Coordinator

START (B)Name of role(s) that will know 1st about

an OP/JV event

Process Owner =??? role ???

ARCELORMITTAL

DOFASCO

Emergency /

Critical Diesel

Refueling Plan

Departmental BCPs

Specific BCPs

Production / Capacity Disruption

Response Templates

ARCELORMITTAL

DOFASCO

I.T. Disaster

Recovery Plan

Business Continuity Plan[Department Name]RESTRICTED CIRCULATIONOwner: Department Continuity Coordinator[Name]Arcelor Mittal Dofasco Inc. -Confidential© AM Dofasco Inc. 2013

Departmental Business Plans

•Department specific

•Identification of :

•critical operations / activities / tasks

that are essential (“must do”)

•essential business including critical suppliers,

core people, skills etc.

•essential staffing required at work

(vs. work from home)

•Mitigation strategies / Action Plans

•Emergency contacts / notification procedures

•Command Center / “War Room”

(including Back-up location)

•Critical records, supplies etc. (recovery boxes)

•Recovery Procedures

Natural Disasters: Allianz Global Corporate & Specialty SE (AGSC) risk survey 2014

reported “Natural catastrophes topped the list of Canadian business risks, with 50% of respondents identifying it as the number one risk. Globally, insured losses from natural catastrophes totaled Can$ 41bn in 2013 (Source: Swiss Re).”

Climate Change & Extreme Weather events are increasing in impact & likelihood.

Persistent Extreme Weather & Natural Catastrophes Note: World Economic Forum – Global Risks 2014 and increasing tornado & earthquake

potential for Hamilton area per Environment Canada. New “arctic vortex” phenomenon in North America this winter.

“What keeps you up at night?”

Thank You

Hamilton CAER Groupwww.hamiltoncaer.com

Chris Andersonchris.anderson@arcelormittal.com

Back-up Slides

Current ProjectHazard Identification & Risk Assessment (HIRA)

Each CAER member has been asked to collect the background information and assess the potential

risk of their operations to impact environment (air, water..) outside of their site perimeter and

ultimately the Hamilton Community, and requiring a coordinated emergency response.

CompanyHazard Identification Risk Assessment (HIRA)

Hazard

Name Address Emergency

ContactName & Number

SubstanceStorage Quantity

Emergency Scenario

Co

nse

qu

en

ce

Fre

qu

en

cy

RiskLevel

Vulnerability Assessment Risk Screening Matrix

Consequences Categories

Category Impact/Consequences

Health & Safety

54321

Multiple fatalities and/or extensive health impact to employees1 fatality and/or serious health impact to several personsInjuries to several personsInjuries to 1 personNo injuries

Financial

54321

Over $100mUp to $100mUp to $30mUp to $10mUp to $3m

Environment

54321

Major Impact – Extensive health impact and / or fatalitiesModerate Impact – Potential health implicationsMinor Impact – Slight Irritation Negligible Impact (Nuisance) No impacts / Not regulated

Customer Impact

54321

Permanent loss of customers and reputationMajor impact to customers and reputationModerate impact to customers and reputationMinor impact to customers and reputationNo impact

Note: Financial criterion limits may vary depending on the size of the organization. Both property damages and business interruption costs should be considered.

Note: Environmental consequence category would be the main consideration for this analysis. Other consequence categories are provided for further consideration. If other categories are considered the “worst case” or highest

category impact should be used for overall risk value.

Frequency Categories

Category Consequences

High 4A failure that is likely to occur frequently or continuously experienced daily, weekly, monthly (< 1 year).

Moderate 3

A failure that has occurred at your facility, can reasonably be expected to occur more than once within the expected lifetime of your facility (e.g., single human error would cause scenario), or likely to occur yearly (1-10 years).

Low 2

A failure that has occurred at your facility, can reasonably be expected to occur once within the expected lifetime of your facility (e.g., dual human error, single mechanical failure of maintained equipment would cause scenario), or likely to occur once every 11-20 years.

Very Low 1

A failure that has occurred at another company, has a low probability of occurring within the expected lifetime of your facility (e.g., multiple human errors, combined mechanical failure/human error, would cause scenario), or likely to occur once every 21-50 years.

Risk Assessment Matrix