Gestion d’incidents GRS (Canada)Développement 80/20 inc. (Canada)

Proactive Risk Management Inc. (USA) Benoit Grenier, November 2013

Los Angeles + 1-323-744-7446Montreal +1-514-444-3218

Toronto +1-416-660-1514New York +1-201-204-9082

Mexico City +52 5539648234Guatemala +502 66284100

Email: benoit@parm8020.com

Planning Ahead: Proactive Risk Management and Customer service at

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● Why Does Risk Management Matter?● What Events Give Rise to Risk?● Our mission● Value added proposition● What if? Failure of Proactive Risk

Management: An Example● What Does an Effective Risk

Management Approach Look Like?● Risk Management Process● Conclusion

Topics for Discussion

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●Reputational RiskRisks to customer base and brand image: harmful coverage in the press, internet, or social media that can damage the company’s reputation. What do our customers say about us ?

●Legal and Regulatory RiskRisks relating to a retailer’s position in legal or regulatory proceedings, increasing the likelihood that the company will face a damages award, penalty or sanction.

Why Does Risk Management

Matter?

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2 Significant Risks

e.g., safety issues, hazard, slip and

fall incidents Product Liability/Product

QualityConcerns about product quality,

whether or not injury caused, risks.

Personal Injury

What Events Give Rise to

Risk?

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5 Categories of Risks

Customer Service ComplaintsCustomer interactions with staff and organization

Loss Prevention IssuesInteractions between customers and personnel, interaction between staff and store, internal theft

Trespassing/Difficult CustomersDealing and Interacting with difficult customers

What Events Give Rise to

Risk? (cont’d)

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5 Categories of Risks

Develop an incident management and customer service strategy that will mitigate risk and convert them into opportunities. Implement best practices to create a safer environment for your customers and for your employees.

Our mission : To provide support

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Our Mission

Implementing and managing a strategy that addresses the stability of your operations, is key to the sustainability and growth of your business. Like most companies, the prime responsibility of your internal incident management team is to proactively manage incidents as they occur. The question is: What is the overall capacity of your employees to identify, analyse and take co-ordinated action in response to risk-related events?

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● Implementing a strategy

● Proactively manage

● Capacity to identify, analyse

● Take coordinated action

Value added proposition

Proactive risk Management has proven its ability to proactively and quickly manage to incidents through its command center, special representative and field operations team. You can count on our expertise and on our 7/24 availability to respond immediately to any new situation to protect your financial and reputational

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● Quickly manage● Command Center● 7 / 24 availability● Protect your assets

Value added proposition

●Builds Credibility proactively○Builds credibility with public, regulators, and the courts. Be a “Good citizen”○Prevent recurring incidents

●Prevents Escalation○Prevents a complaint from becoming a formal demand or legal claim○Prevents recourse to the press or to the regulator○Prevents a problem in one store from becoming a national problem by identifying systemic problems with products or with company policies

Key Benefits of Proactive Risk Management

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Helps in NegotiationResponding early to complaints typically results in more manageable expectations on the part of customers. Communicating effectively allow better management of situation and better outcome.

Preserves EvidenceTaking steps to preserve evidence and build a record can ensure a strong defence against claims later on

Ensures Legal ComplianceLegally, retailers have a duty to report certain incidentsCannot choose not to be proactive

Key Benefits of Proactive Risk Management

(cont’d)

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Ensuring up-to-date understanding of legal and regulatory responsibilities. Duties to keep certain records.

Clear policies for dealing with customer complaints and areas of risk. Formal process.

Use of established response for communications, but also training staff on when ready-made messages not appropriate

Focus on collecting evidence as soon as possible. Integrated incident reporting, statements, pictures etc.

What Does an Effective Risk Management

Approach Look Like?

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Involvement of counsel and outside advisors /experts for sensitive risks

Protocol in place for product recalls

Ensuring good communication and relationships with suppliers

Always recognizing the risk of escalation. What if? Prevention

What Does an Effective Risk Management

Approach Look Like? (cont’d)

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Failure of Proactive Risk Management: An Example

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Customer serviceLiabilityPropertyOthers

Risk Management

Process

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Incident Investigation Conclusion RecommendationSettlement

orLitigation

Follow-up

Liability Resolution Process

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Process Management from Start to Finish

Source of Information

Method of Receipt

Information Recovery

Triage Data Gathering Product

Customer;Store / Staff;Government Agencies;Other.

Incident Report;Web /contact us;HR Support LineCustomer service Line;Other Mgt Sources.

Tracking;

Mgt Reports.

Escalation to Management / Risk Management Leadership / C-Level

Product Retrieval;

Investigation

Product;

Store Level;

Customer;

Government Agencies

Inci

dent

occ

uren

ceRequired A

ction / Case R esoluti on

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● Incident number;● Unique Store incident number;● Incident source of information;● Handler’s name;● Actions taken;● Due dates;● Date of next step;● Information and evidence

gathering;● Investigation reports;● Voluntary Statements from

operations;● Assessment analysis;● Recommandation.

Data Gathering and Management Reporting

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Overview of Risk Management Strategies

•Store operating Rules and Policies•Health and Safety Rules and

Policies•Management Raise•Key metrics and Management

reporting•Procurement Rules and Policies•Vendor Compliance Process•Risk Management•Loss prevention Management•Audit Process•Incident Management Process•Product recall compliance Process

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Method

IncidentEntrance- Contact us- Telephone- Fax- Letter- Incidentreport Logging

- input into database

Classification- General Liability- Property

IncidentAssessment&Reporting

ResolutionProcess

ManagementReporting

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contactus@

99only.com

Fax

IncidentEntrance

Telephone

Customerservice

Letter, SOC etc.

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INCIDENT

General Liability

Property & Business

Interruption

Aims to cover material damage or bodily harm caused by third party or

customer

Aims to cover building, equiment, inventory against all risks , fire,

theft, flood, etc.

Classification

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Others

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○ We aim at protectingPeople (personnel, customers, suppliers, partners)Assets (physical, data and information)Reputation (image and notoriety of customer service) . . .

ThroughThe identification of vulnerabilitiesThe deployment of preventive measuresThe monitoring of business activities and eventsThe management of incidents and eventsThe recommendation of business-enabling solutions.

How we anchor our mandates

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We are looking forward to supporting your progressfrom a reactive mode

towards a planned and integrated prevention - intelligence - detection - response -

improvement mode.

Conclusion