Managing a Major Plant Fire

Situation

A serious fire broke out in a large warehouse on the premises of a multinational company, which was severely damaged to some extent. The warehouse was operated by an external logistics company and parts of it were rented to other companies or used by third parties. Parts of the warehouse stock of the affected company belonged to its customers.

As a result of the fire, the business continuity of the corporation was considerably affected and partly interrupted. Local and regional media began reporting about the incident.

Approach by SmartRiskSolutions

After immediate activation of the emergency management team, the affected company convened its crisis management team to deal with the crisis. A crisis response consultant from SmartRiskSolutions was called in to support the work of the crisis management team.

• Our crisis management consultant first began to assess the situation together with the head of the CMT. A coordinator function was added to the staff in order to create a competent interface to the numerous working groups that had been set up. Regular meetings with the legal department took place.
• Due to the local press coverage about the incident, SmartRiskSolutions started a media monitoring. Together with the communication department, a communication strategy was developed and holding statements and FAQs were developed. All stakeholders were systematically identified and efficient communication was established with them.
• The authorities' investigations into the cause of the fire, the work of the insurance experts and fire clean-up specialists were supported. Because it was initially unclear whether, when and to what extent the large warehouse could continue to be used, different scenarios were worked out and alternative storage capacity was created.
• The status of actual non-recoverable stocks was the central basis for assessing the impact of the disaster on business continuity and certain stakeholders. With the stakeholders, including other parts of the corporation, a consolidated work plan for several months could then be drawn up, signed off and addressed.

Outcome

This complex crisis had significant adverse effects on business continuity and put the client's reputation at risk. As a result of the support provided by our consultant, it was possible to manage the crisis holistically and to prevent potentially negative developments in situations.

The confidence of the stakeholders in the client's crisis management was impressively shown and a well-coordinated, resource-saving crisis management was set in motion.