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2010
APRIL 2010
CRISIS COMMUNICATIONS PLAN
2 Scotiabank Crisis Communications Plan
Introduction
Message from our CEO
As a world-class corporation that manages some $500 billion in assets belonging to
millions of Canadian and global customers, we at Scotiabank have an obligation to plan for any
eventuality that may harm the well-being of our business and reputation. It’s not just our assets
that we are safeguarding, it’s the hard-earned dollars of everyday people around the world.
That raises our obligation to the highest standard.
People don’t like to talk about the potential of “things going wrong.” But we must.
Unfortunately, crises are a fact of life. Disasters, accidents, mistakes and, yes, even criminal acts
occasionally happen. We must be particularly mindful of attempts to “hack” or steal banking
information, PIN numbers and other confidential information. While we can take some well-
meaning steps to ward these events off, we can’t avoid them entirely. One of the core values
that define a good corporation is how it plans and deals with crises. We must be prepared.
That’s the reason for this crisis communications plan.
I thank all those employees who had a hand in drafting this plan. Their dedication to
protecting Scotiabank, our enviable reputation and our well-being is to be commended.
Yours sincerely,
Rick Waugh
3 Scotiabank Crisis Communications Plan
Crisis Communications Plan -- Purpose and Objectives
The general purpose of Scotiabank’s crisis communications plan is to ensure we have the
knowledge, training, resources and information channels to quickly and effectively deal with a crisis.
More specifically, this plan will help us:
1. Protect the value of the assets we manage
Our primary business and obligation is to protect the assets of customers who put their trust in
us. We manage some $500 billion in assets for customers around the world, from families and
pensioners to the wealth of major corporations.
2. Protect our reputation
The success of Scotiabank is built on an enviable reputation that has been built up over more
than 170 years. Our reputation is built on longevity, financial stability, protecting the assets of
customers, our team of employees, and our deeds and actions in the many communities we
serve. Our reputation is our most precious resource.
3. Protect our sales and market share
Scotiabank has grown and prospered over the years by not only building on the past, but also
looking to the future. Our values emphasize the need to be innovative and responsive to the
needs of our many customers. We continue to build our presence in Canada and around the
world by stressing customer service.
4. Spell out protocols to follow
In the event of a crisis, this plan spells out the protocols and procedures employees – from the
President’s office to the customer service associate – will follow to mitigate the impact on
Scotiabank’s business and reputation.
4 Scotiabank Crisis Communications Plan
Inventory of Vulnerabilities
1. CEO dies suddenly
2. Employee defrauds company
3. Employee defrauds customers
4. Employee accused of high-profile crime
5. Insider trading
6. Successful class-action lawsuit over unpaid overtime (now before courts)
7. Computer system crashes
8. Internet banking system crashes
9. Telephone system crashes
10. Hacker breaks into system
11. Terrorist attack on branch or office
12. Natural disaster hits branch
13. Fire hits branch
14. Power outage
15. Stock market crash
16. “Run” on bank, with customers demanding their cash
17. Discrimination/human rights violation
18. Accusation of unfair labour practices
19. Labour dispute
20. Union certification drive
21. Backlash over executive bonuses
22. Sexual assault on company property
23. Workplace violence
24. Robbery
25. Hostage taking
26. High-profile foreclosure of home, business or farm
27. Outbreak of communicable disease
28. Pandemic
29. New government regulation
30. Government probe or investigation
31. Widespread crisis in banking
32. Layoffs
33. Corporate takeover – hostile
34. Corporate merger
35. Protests
36. Boycotts
37. Security threat – irate customer
38. Vandalism
39. Reputation attacked or threatened
40. Hike in rates – example: credit card fees, banking rates, mortgage rates
41. Internal financial crisis – example:
bankruptcy, creditor protection
42. Sudden drop in stock value
43. Chairman of board of director dies
5 Scotiabank Crisis Communications Plan
SCOTIABANK RISK ASSESSMENT
Highly probable
--Robbery --Hostage taking --High profile
foreclosure of home, farm, business
--Anger over hike in rates
Employee defrauds company
Labour dispute Reputation
attacked
Possible Vandalism Security threat
from irate customer
Employee accused of high profile crime
Natural disaster hits branch
Fire hits branch Discrimination,
human rights violation
Internal human resources issues
Workplace sex assault
Workplace violence
Outbreak of communicable disease
Protests Chairman of
board of directors dies
CEO dies suddenly
Insider trading Successful class-
action lawsuit over unpaid overtime
Terrorist attack Power outage Union
certification drive Pandemic Layoffs Friendly
corporate takeover
Boycott
Internet banking system crashes
Telephone system crashes
Hacker breaks into system
Computer system crashes
Stock market crashes
Strike Government
probe Widespread
banking crisis Hostile corporate
takeover Merger Sudden drop in
stock value
Unlikely Run on bank by worried customers
Internal financial crisis, such as bankruptcy
Impossible
Low Medium Considerable Devastating
PR
OB
AB
ILIT
Y O
F R
ISK
IMPACT OF RISK
6 Scotiabank Crisis Communications Plan
Social Media/Internet Risk Evaluation
In today’s world, with the use of technology, the Internet and social media, companies are
prone to having bad news or rumours spread about them quickly and globally.
It would be easy for a disgruntled customer to spread their complaint quickly using Twitter,
YouTube, Facebook, blogs and other social media channels. For example, if someone has had their home
foreclosed because of non-payment of their mortgage to Scotiabank, the customer could easily turn to
social media to express their displeasure. If their story is particularly heart-wrenching -- say, a family
struggling to take care of a disabled daughter or a fifth-generation dairy farmer who can’t afford to pay
the bills -- the risk factor heightens. Since the media monitors social media and are looking for good
stories, they could pick up on an online story and take it mainstream.
Meanwhile, more and more websites and blogs are popping up where customers and
employees can rate companies. For example, glassdoor.com contains reviews and ratings of Scotiabank
by anonymous employees, giving them an opportunity to gripe or praise their bosses (CEO Rick Waugh
receives a 79% approval rating). Other sites, such as yelp.ca and qualisteam, allow customers to write
reviews of businesses and their customer service. Such sites should probably be monitored occasionally
to get a snapshot of what customers and employees are thinking and saying.
Top Three risks
1. Employee fraud
Employee fraud can come in several forms: chiefly, an employee defrauding the bank or defrauding
a customer. Both can have a major negative impact on a bank’s reputation even if the dollar amounts
involved are small compared to the billions the company manages.
The financial impact when an employee steals money from the company depends on the amount of
money. Chances are that major banks have enough checks and balances in their system that no single
employee can have access to hundreds of millions of dollars. Major banks with assets in the hundreds of
billions are also cushioned from an impact on their balance sheet. However, rogue employees can have
a major impact on a bank’s reputation. Bank fraud has a ripple effect, causing customers to question
whether the company has enough checks and balances in place, supervises employees properly or does
proper screening when hiring. Since so much of the banking industry is based on faith and trust, fraud
7 Scotiabank Crisis Communications Plan
can impact reputation negatively. Briton Nick Leeson lost about $1.5 billion of Barings Bank in 1995,
while Bernie Madoff was responsible for the loss of many more billions in the United States a few years
ago.
Cases where bank employees defraud customers of their savings can have a severe reputational
impact on a company. There have been numerous examples of financial advisors being caught for
defrauding customers who entrusted their money with them. The most recent example is Canadian Earl
Jones. These cases get a large amount of media attention. While most of these cases involve advisors
not working for Canada’s major banks, it is a possibility and must be considered as a major risk,
especially due to its potential reputational damage.
There may be prodromes that thoughtful managers or employees may pick up regarding potential
internal fraud. An employee may indicate they face a personal financial crisis and are being stressed out
because of it. Also, fellow employees may notice that a colleague doesn’t follow all the spelled-out
policies and procedures regarding money accounting or online trading.
2. Hacker breaks into bank’s secure system
Banks and other financial institutions spend millions of dollars to put up firewalls and other
safeguards to guard against increasingly creative and clever hackers who seek to access secure
computer systems. Banks encourage customers to migrate to online banking. To help do so, banks offer
numerous assurances that their systems are safe and secure, even offering money-back guarantees if
somehow customers lose money to hackers through no fault of their own.
The issue of hackers trying to steal information or money is a serious one for banks. The Canadian
Bankers Association presented a brief to a House of Commons committee in the fall of 2009 supporting
the need to pass the Electronic Commerce Protection Act, noting that Canada was the only G8 nation
without rules in this area. The paper warns about the practice of “phishing” where hackers use spyware
to steal personal information and send counterfeit messages trying to entice people to disclose personal
information, including bank information.
Also in 2009, the Bankers Association warned another House of Commons committee about the
threat of identity theft. In doing so, it revealed how seriously banks take this issue:
“As businesses that handle personal information and the financial accounts of millions of
Canadian consumers, the banks take their role in the fight against identity theft extremely seriously.
The banking industry in Canada, for example, spends in excess of $100 million annually to prevent,
8 Scotiabank Crisis Communications Plan
detect and deter fraud and other crimes against banks, including criminal activity resulting from
identity theft, in addition to reimbursing bank customers who are proven victims of many financial
frauds.”
Canada passed a law to combat identity theft in October 2009, making it illegal to possess personal
information belonging to others before it is used for fraud or theft.
Finding information on successful bank hacking and identity theft is hard. Obviously, banks don’t like
to reveal they’ve suffered losses, partly because it could bring bad publicity and partly because it might
encourage other hackers.
While a hacking attack may catch banks off guard, they are not surprises. Banks routinely upgrade
their computer defense systems and routinely test them. In fact, there have been news reports of banks
hiring so-called “ethical hackers” to test their defences and reveal weaknesses. These hackers are not
after money; they are trying to see if they can beat the system as an experiment that will benefit the
banks.
3. Successful class-action lawsuit over unpaid overtime
Scotiabank is currently facing a $300-million class-action lawsuit over unpaid overtime to some
5,000 employees. An Ontario court judge gave the lawsuit class-action legal status in February 2010.
Class-action lawsuits in Canada are rarely certified to proceed, so this is a case that is being closely
watched and could be precedent setting. A similar $600-million lawsuit on behalf of CIBC employees has
failed to win status, prompting the law firm representing staff to appeal.
The Scotiabank lawsuit is based on a claim filed by lead plaintiff Cindy Fulawka based on her
experience dating back to 2000. The names of more than 5,000 other current and past employees have
been added. The employees allege they were routinely expected to work overtime, especially if they
were to meet sales targets and wanted to get ahead at the bank. Judge George Strathy of the Ontario
Superior Court of Justice said the case was worth hearing since it dealt with “systemic wrongs that give
rise to common issues, the resolution of which would advance the claim of every class member,”
according to the Canadian Press account of the decision. Strathy added that "systemic wrongs included
the failure of Scotiabank to establish a system-wide procedure to record overtime, making it all the
more difficult for employees to obtain fair compensation for their overtime work."
9 Scotiabank Crisis Communications Plan
Scotiabank has denied the allegations and tried unsuccessfully to fight the lawsuit’s elevation to
class-action status. The bank has not announced if it intends to appeal the judge’s decision, but it is
expected to.
If successful in the long run, the class-action suit could take a $300-million bite out of Scotiabank’s
balance sheet. Even though Scotiabank is financially strong, reporting about $800 million in profit per
quarter, $300 million is still a big chunk of change. Legal costs to defend the suit will also be
considerable, well into the millions.
Of greater concern, is the reputational damage a successful lawsuit will have on Scotiabank. There
would be major “bad press” if a judge rules that the bank didn’t treat some 5,000 employees fairly and
contravened the Canada Labour Code. The Code calls for employees to be paid 1.5 times when they are
required to work more than eight hours in a day. Stories would be run across Canada. Canadians would
question if Scotiabank is a good place to work, as would other employees. Canadians who feel strongly
about workers’ rights, including trade unions, would think twice about doing business with Scotiabank
and could withdraw their business.
It was not a surprise that employees were unhappy with arrangements regarding working extra
time. Undoubtedly, there were complaints from employees. Even if these were not voiced loudly, they
were known to management. The issue of pay for bank employees, especially those at the lower levels
such as tellers, has been in the news for years.
Key Audiences
A multi-national financial company with the scope and assets the size of Scotiabank has many
key audiences, publics and stakeholders.
They include:
Current customers
Potential customers
Small and medium-sized businesses
Shareholders
Bond holders
Board of directors
Employees
Government – Canadian and foreign
countries where Scotiabank does
business
Bank of Canada
Banking regulators – Office of the
Superintendent of Financial Institutions,
Financial Consumer Agency of Canada,
Canadian Payments Association
10 Scotiabank Crisis Communications Plan
Canadian Bankers Association
Consumer advocacy groups
(Consumers’ Association of Canada)
Police, including RCMP
Charitable organizations and causes
that receive donations from banks
Toronto and New York stock exchanges
Securities regulators (different in each
province)
Pension funds (holders of stock or debt)
Mutual funds (holders of stock or debt)
Creditors
Business analysts
Suppliers (example: stationary,
computer equipment suppliers)
Media (print, radio, TV and online)
Neighbours of branches, offices
Key Audiences for Top-3 Risks
RISK KEY AUDIENCES
Employee fraud
Police – need to be notified to pursue criminal investigation
Top managers – need to be aware of incident to review security policies
and procedures
Other employees – need to be reminded how serious the bank takes these
incidents
Media – if word comes out, will need to be messages that this is an
unfortunate but extremely rare incident
Hacker attack
Police, including RCMP’s Reporting Economic Crime On-Line (RECOL) –
need to be notified
Government regulators – need to be notified if widespread affect
Top managers – need to be aware to review security procedures
Board of directors – need to be aware of major incidents
Employees – need to be reassured they did nothing wrong but that all
employees need to be vigilant and remind customers of this need, as well
Media – if word of incident comes out publicly, need to be told this is an
extremely rare incident and the banks spends heavily to protect customers
11 Scotiabank Crisis Communications Plan
and bank assets
Consumers – to issue information, advice on protecting themselves
Securities regulators – may need to know if widespread attack that may
compromise stock value or trading
Canadian Bankers’ Association – likes to keep track of these incidents,
since speaks on behalf of all banks
Successful
class-action over
unpaid overtime
Managers – need to know, since they will need to review overtime policies
in light of decision and may need to make policy changes accordingly
Employee groups – Scotiabank needs to reassure employees they will be
treated fairly and in accordance with the law; that they are a valuable
resource
Board of directors – need to be notified because will be a major cost to
company
Business analysts – will want to know what affect a major settlement will
have on Scotiabank’s balance sheet
Media – will have questions; will want to know Scotiabank’s reaction, what
it will do differently from now on, about impact on company reputation
Consumers – may need messaging telling them that Scotiabank will follow
the law, felt it was treating employees fairly before but will redouble its
efforts to be considered a leading employer
12 Scotiabank Crisis Communications Plan
Communications Channels
It is important that Scotiabank has plans in place to communicate with its key audiences and
stakeholders during a crisis. These channels must be pre-determined, not left to sorting out during a
crisis itself.
Among the channels we will use for various groups:
KEY AUDIENCE COMMUNICATIONS CHANNEL
Board of directors
Personal phone call from board secretary; e-mail is backup if can’t be reached by
phone; fax message; company Intranet website for internal communications
Top managers
Personal phone call from communications team; e-mail is backup if can’t be
reached by phone; fax message; company Intranet website
Employees
Internal e-mail system; company’s Intranet website; phone system, if necessary;
news media; memos place on workplace bulletin boards
Government
regulators, bank
regulators
Personal phone call; e-mail; information on Scotiabank’s public website; fax
message; news media
Business analysts
Pension funds
Mutual funds
Shareholders
News release; information on Scotiabank’s public website; fax message
Customers
Charities
Information on Scotiabank’s public website; news release; advertising on radio
Media News release; information on Scotiabank’s public website; e-mail; phone call
Police Personal phone call.
Even during a power outage, Scotiabank is confident it will be able to get the majority of its
messages out to the majority of its intended audiences. This confidence comes from ensuring backup
power generators are operation in our Emergency Operations Centre, located in the sub-basement of
Scotia Plaza in downtown Toronto (see more details below).
However, when faced with extraordinary circumstances, we have backup plans. We have the
ability to use telephone systems, either landline or mobile, to reach key audiences such as police,
company directors, top managers and government regulators. For a widespread crisis, we would turn to
13 Scotiabank Crisis Communications Plan
the news media to primarily get the message out, for example, asking radio and TV stations to broadcast
that there’s a fire at a Scotiabank branch on Toronto’s Queen Street West that has shut it down.
Our Crisis Team -- Roles and Responsibilities
PERSON, TITLE RESPONSIBILITIES
Crisis Communications Chair
Sylvia Chrominska, Group
Head, Global Human
Resources and
Communication
Ensures communication with top managers, including CEO
Verifies extent of crisis and resources that will need to be deployed
Looks at big picture, regarding impact on corporation
Directs messaging that public relations staff will produce
Keeps record of events during crisis
Communications with bank operations staff as needed
Joe Konecny, Corporate
Media Relations (bilingual)
Handles media relations with English and French media
Drafts key messages under direction of chair
Also drafts messages and communications material for employees
Monitors media coverage
Elsa Mercado, International
Banking Media Relations
(called in if crisis outside
Canada; speaks Spanish)
Called in when crisis involves banking operations outside Canada
Handles media relations with Canadian and foreign media (will
access to translators if needed)
Joe Pisces, Government
Affairs Information Officer
(bilingual)
Handles communications with government, bank-related regulators,
industry associations
Bobby Brown, Manager
Corporate Security
Communicates with team regarding investigation into security
breaches, particularly around computer systems, hacker attack,
Internet fraud
Siha Mohammed,
Communications
Webmaster
Will activate Dark Websites when directed by team chair
Will post information to websites for employees, media and public
Samantha Small, IT Support
Technician
Assists with maintaining emergency centre computer systems
operational
Assists webmaster with posting of information
Rebecca Orsini, Section
Manager, Human Resources
and Administration Support
Works with team to provide human resources support
Does administrative duties as needed
Basil Thistlewaite, Manager
Corporate Reputation
Works closely with chair to look at big picture, safeguarding the
reputation of the corporation
Offers strategic thinking and planning support
14 Scotiabank Crisis Communications Plan
Identification of Spokespersons
The choice of spokesperson will depend on the level and breadth of a crisis.
CEO and President Rick Waugh
If a crisis affects the entire Scotiabank reputation or operations, the best spokesperson to speak
for the bank is our CEO, Rick Waugh. Mr. Waugh has extensive experience talking to government
leaders, bank regulators, associations, the business community, the media and employees. He is
recognized as a dynamic leader. Examples of crisis where he would likely to be called on to speak
include: a widespread banking crisis, stock market crash, large-scale government probe, the class-action
lawsuit over unpaid overtime, widespread computer system crash or hacker attack that shuts down our
banking systems. Mr. Waugh is also the spokesman for any issue related to changes or attempted
changes to the corporation, such as mergers and takeovers.
Sylvia Chrominska, Group Head, Global Human Resources and Communications
Ms. Chrominska is head of Scotiabank’s public affairs and communications branch, responsible
for Canada and out-of-Canada operations. As part of Scotiabank’s executive team, she has detailed
knowledge of our operations. She would be the lead spokesperson for most crises that do not require
comments or messaging from the CEO’s office. Also, as head of human resources, she is well qualified to
speak on issues regarding employee relations, including the class-action lawsuit over unpaid overtime,
labour disputes, unionization drives, allegations of discrimination, cases of workplace violence whether
physical or sexual. Similarly, as head of human resources, Ms Chrominska can speak about the affects
and responses related to a pandemic. Ms. Chrominska has the power to delegate spokespersons from
the public affairs and media relations department in cases of more localized or more minor crises.
Bobby Brown, Manager, Corporate Security
Mr. Brown is an expert in corporate security, with two decades of experience formerly working
for the RCMP in its corporate fraud section. He has received media training and is qualified to speak on
the bank’s behalf related to issues where there have been security breaches: hacker attack, Internet
bank fraud, phishing and identify theft. He is also qualified to speak on behalf of Scotiabank when there
have been terrorist attacks on branches or offices.
15 Scotiabank Crisis Communications Plan
Notification Procedure
Internal notification
The procedure for internal notification can vary depending on the type of crisis and severity of
crisis. Generally speaking, some crises can be handled at the local or branch level with some assistance
from communications, operations, human resources and security staff from corporate office.
Examples of these types of crises include:
Fire or vandalism at branch;
Local computer or telephone system
crash;
Internal workplace issue;
Robbery;
Local protest;
Local power outage;
Natural disaster hits branch.
In these cases, the notification procedure is (from bottom up):
In cases where a crisis is more widespread or affects the business and reputation of the
corporate Scotiabank, word goes further up the ladder and many should reach the ears of
CEO/President Rick Waugh.
Examples of these wider scope crises include:
Insider trading; Union certification drive;
Branch manager
Regional Manager
Security department Communications department Manager of Corporate Reputation
16 Scotiabank Crisis Communications Plan
Pandemic;
Large-scale computer or Internet
banking crash;
Widespread hacker attack;
Stock market crisis;
Hostile takeover attempt;
Internal financial crisis
Major layoffs;
Major labour dispute;
Major case of employee fraud.
A more detailed Scotiabank organizational chart showing top executives follows this page:
Branch manager
Regional Manager
Security department Communications
department
Manager of Corporate
Reputation
Group Head, Global Human
Resources and
Communications
Executive Vice-President,
Information Technology
and Solutions
President and Chief
Executive Officer
Board of Directors
17 Scotiabank Crisis Communications Plan
Scotiabank Organizational Chart 2010
18 Scotiabank Crisis Communications Plan
Emergency phone tree
When faced with a crisis, employees will follow the above map to notify the appropriate
manager and the communications department. The communications department will initiate the phone
tree and contact the appropriate responders and upper managers.
Name Title Phone E-mail
Sylvia Chrominska
Group Head, Global Human Resources and Communications
Office: 416-933-1344 Cell: 416-771-4441
Joe Konecny Corporate Media Relations
Office: 416-933-1795 Cell: 416-791-1159
Elsa Mercado International Banking Media Relations
Office: 416-933-1212 Cell: 416-791-0023
Joe Pisces Government Affairs Information Officer
Office: 416-933-1435 Cell: 416-754-2423
Bobby Brown Manager Corporate Security
Office: 416-933-8485 Cell: 416-873-4887
Siha Mohammed
Communications webmaster
Office: 416-933-5873 Cell: 416-774-3397
Rebecca Orsini Section manager, human resources
Office: 416-933-9947 Cell: 416-771-4765
Basil Thistlewaite
Manager Corporate Reputation
Office: 416-933-7649 Cell: 416-771-8376
Sabi Marwah Chief Operating Officer
Office: 416-933-8471 Cell: 416-774-4876
Rick Waugh CEO and President Office: 416-933-7461 Cell: 416-771-9832
Sylvia Smith Executive Secretary to President
Office: 416-933-7207 Cell: 416-774-4765
Kim McKenzie Executive vice-president, Information Technology and Solutions
Office: 416-933-9817 Cell: 416-771-5836
Christopher Hodgson
Group Head Canadian Banking
Office: 416-933-0028 Cell: 416-771-6481
Patty Stathokostas
Multicultural Banking Media Relations
Office: 416-866-3625 [email protected]
Debbie Clark Corporate Social Responsibility, Media Relations
Office: 416-933-4153 [email protected]
Scotiabank Com. centre
1-800-713-8899 [email protected]
19 Scotiabank Crisis Communications Plan
External Notification
When it is necessary to notify external authorities, some common sense rules will apply.
In the case of a crisis involving a branch or office, the branch or office manager will determine
when it is necessary to notify outside authorities based on our pre-established guidelines. For example,
obviously a branch manager’s first duty in the case of a fire, robbery, hostage taking, power outage,
terror attack or natural disaster, is to contact emergency authorities. After doing so, they should contact
their regional manager.
In cases, where the crisis includes a local labour dispute, protest, boycott, human resources
issue, outbreak of disease, system shut down, a local branch manager will notify their regional manager.
The regional manager will follow the prescribed notification procedure also used for internal issues. The
regional manager will notify the communications department, the Manager of Corporate Reputation
and the Security Department.
In more major cases which involve the legal and financial duties of the corporation, it will fall to
the either the Government /Public Affairs Office, Investors Relations or Legal department to notify the
appropriate authority.
Branch manager
Regional Manager
Security department Communications
department
Manager of Corporate
Reputation
Group Head, Global Human
Resources and
Communications
Executive Vice-President,
Information Technology
and Solutions
President and Chief
Executive Officer
20 Scotiabank Crisis Communications Plan
News conference checklist
Many crises require, at some point, holding a news conference to disclose important
information to the media. We must remember that news conferences afford us an opportunity to get
our message out to customers, employees, shareholders, government officials, the general public and
other stakeholders. Therefore, we must have the knowledge and tools to hold a successful news
conference event.
The following is a list of procedures and requirements:
1. Determine the time and place of holding a news conference, cross-referencing the availability of
key spokespeople and bank officials.
2. Notify the media of the time and place.
3. Invite outside officials if appropriate.
4. Make list of news media who will be attending.
5. Prepare backgrounder, both a general one on Scotiabank and a more specific one on the issue
that necessitated the conference.
6. Prepare agenda for event.
7. Prepare media kits to include backgrounders, agenda, bios of spokespeople or company
officials, business cards in hard copy.
8. Assign internal staff or hire external staff to hire the logistics of the event. This could include:
Set up speaker podium, tables and chairs;
Set up backdrop if appropriate;
Set up audio-visual equipment;
Have hookups for microphones for media members;
Arrange for Internet access for media members;
Have light food and refreshments, if appropriate.
9. Brief staff and speakers beforehand, regarding issue at hand, number of media, media
organizations attending, agenda for event, protocol for questions.
10. Work with spokespeople on speeches, interview tips, expected questions and answers, and key
messages.
11. Have sign-in sheet for media, collect business cards from media members.
12. Distribute media kits after sign-in.
21 Scotiabank Crisis Communications Plan
13. Have staff member introduce news conference and spell out rules.
14. Have staff member record news conference in same way media would, including videotaping
event.
15. Have staff member – same one as who opened conference – select media members who have
questions to ask.
16. Close news conference, inviting any media with further questions to talk to the media relations
or communications spokesperson assigned to the event.
Emergency Operations Centre
The Emergency Operations Centre is activated during a widespread or particularly damaging
crisis that affects the entire Scotiabank corporate reputation, finances or succession planning.
Examples where the Emergency Operations Centre is activated:
Sudden death of CEO and President;
Stock market crash;
Widespread crisis in Canadian banking system;
Widespread crash of computer, telephone system or online banking during regular business
hours;
Hacker breaks into secure servers and compromises system-wide security.
Location: Corporate Headquarters, Scotia Plaza, 44 King St. W., Toronto, ON M5H 1H1, Sub-
basement, Room SB 100, accessible by security swipe cards and fingerprint recognition technology. The
room is equipped with clocks showing various world times.
Checklist of required supplies:
Backup generators;
Secure servers;
Secure telephone system;
Secure high-speed Internet access;
Laptops;
BlackBerry’s and cell phones, with spare
batteries, chargers;
Printers, photocopy machine;
Fax machine;
Radios and televisions;
22 Scotiabank Crisis Communications Plan
Electronic and hard-copy versions of
crisis communications plans, emergency
contact lists, organizational charts; list
of branches, with phone and e-mail
addresses;
Stationary supplies;
Flip charts, bulletin board;
Spare batteries, battery chargers;
Digital cameras, extra memory cards;
Digital video camera to take videotape
message, if necessary, which can be
posted to YouTube, our Intranet and
company website, or sent out
electronically to the media;
Telephone directories;
Map showing location of
branches/offices.
23 Scotiabank Crisis Communications Plan
Backgrounder Facts about Scotiabank
Scotiabank is one of North America's premier financial institutions, and Canada's most international bank. Since welcoming our first customers in Halifax, Nova Scotia, in 1832, Scotiabank has continued to expand its global reach. Today, through our team of close to 68,000 employees, Scotiabank Group and its affiliates offer a diverse range of products and services, including personal, commercial, corporate and investment banking, to almost 14.6 million customers in some 50 countries around the world.
Our corporate goal is to be a leading international financial services provider, based in Canada, by being the best at helping our customers become financially better off. We operate three business lines: Canadian Banking, International Banking and Scotia Capital under the leadership of CEO and President Rick Waugh.
Canadian Banking
Canadian Banking provides a full range of banking and investing services to more than 7.4 million customers across Canada, through a network of 1,019 branches, 2,964 automated banking machines (ABMs), and 101 Wealth Management offices, as well as telephone and Internet banking.
International Banking
International Banking encompasses Scotiabank's retail and commercial banking operations in more than 40 countries outside Canada. More than 46,000 employees provide a full range of financial services to more than five million customers through a network of 1,907 branches and offices, 3,509 ABMs, telephone and Internet banking, in-store banking kiosks and specialized sales forces. We operate in the following geographic regions: the Caribbean and Central America, Mexico, Latin America and Asia.
Scotia Capital
Scotia Capital is the wholesale banking arm of the Scotiabank Group. We offer a wide variety of products to corporate, government and institutional investor clients. Scotia Capital is a full-service lender and investment dealer in Canada and Mexico, and offers a wide range of products in the U.S. We also provide select products and services to niche markets in Europe and Asia.
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For more information, contact:
Deborah Clark, Manager, Public Affairs, Scotiabank, 416-933-0646 or [email protected]
24 Scotiabank Crisis Communications Plan
Initial Disclosure Statement Template (Statement to be used initially if contacted by the media or questioned by employees) Yes, we at Scotiabank are aware of the issue regarding ________________________________
This is what Scotiabank can confirm at this time ______________________________________
We hope to have this situation resolved as soon as possible and will keep the public advised through the
news media and through our website _________________ _____of any important developments.
That is all we can confirm at the present time. I am sure you understand we are very busy trying to deal
with this situation. We ask for your patience. As soon as we have more information confirmed, we will
be releasing it.
Thank you very much.
Drafted by: ________________________
Approved by: ______________________
Date: _____________________________
Time: _____________________________
25 Scotiabank Crisis Communications Plan
Crisis Fact Gathering Sheet
Name/Position: ________________________________________
Date/Time of incident: __________________________________
Please provide as much information as possible from the list of questions below:
DESCRIBE WHAT HAPPENED
• What happened?
________________________________________________________________
________________________________________________________________
________________________________________________________________
• Where did the incident occur?
________________________________________________________________
• How did the incident occur?
________________________________________________________________
________________________________________________________________
• When did the incident occur?
_____________________________________________________________
• What danger does the incident pose for our organization?
_____________________________________________________________________________________
_____________________________________________________________________________________
Who is impacted?
_____________________________________________________________________________________
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NOTIFICATION
• Who has been contacted so far?
________________________________________________________________
________________________________________________________________
• Who else needs to know?
________________________________________________________________
• Who is informing them?
________________________________________________________________
• What authorities have been contacted?
_____________________________________________________________
• Has there been any contact with local/provincial/federal government officials? If
yes, whom?
__________________________________________________________________
__________________________________________________________________
• Has the media called? If so, who? When? Where are they? Is someone managing the media?
_______________________________________________________________________
_______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
What was the media told?
________________________________________________________________
________________________________________________________________
• Is a news release necessary?
________________________________________________________________
• Is a Dark Web Site activation necessary?
________________________________________________________________
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CURRENT STATUS
• Who is the senior executive in charge? Phone #?
_____________________________________________________________
_____________________________________________________________
• Who can act as spokesperson? Phone #?
_____________________________________________________________
________________________________________________________________
__________________________________________________________
• When will more details be available?
_____________________________________________________________
ACTIONS
What actions have been taken so far?
___________________________________________________________________
___________________________________________________________________
_____________________________________________________________
• Describe what we are doing now and are about to do to regain control of the situation?
_________________________________________________________________
__________________________________________________________________
______________________________________________________________
• Going forward, what is the restoration plan?
______________________________________________________________
28 Scotiabank Crisis Communications Plan
TELEPHONE MEDIA LOG SHEET (Use this form to record each phone call from the news media) • Call Returned By: ________________________________________________________ • Date: ______________________ Time: _______________________ • Name: ________________________________________________________________ • Organization: ________________________________________________________________ • Location: ________________________________________________________________ • Telephone Number: ________________________________________________________________ • Fax Number: ________________________________________________________________ • Message: ___________________________________________________________________ ___________________________________________________________________ __________________________________________________________________ • Other Information/Notes: ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ __________________________________________________________________
29 Scotiabank Crisis Communications Plan
Key Messages – Top-3 Risks
TOP-3 RISKS MESSAGES – To be stressed in the order indicated Employee Fraud
We apologize if any customers have lost money due to fraud by one of
our employees.
Customers will not be out of pocket.
Customers put their faith and trust in us, expecting us to take care of
their assets. We can assure you that we take this obligation extremely
seriously. We will protect your money.
In the event of employee fraud and the loss of money, Scotiabank’s first
priority is that customers/clients do not suffer financial loss.
Scotiabank has a policy of full reimbursement for such losses. We intend
to make this process as customer friendly as possible.
We are launching a full investigation to ensure we have taken every
possible step to help prevent this from happening again.
Scotiabank takes employer fraud very seriously, and we have stringent
hiring practices and numerous checks and balances to try to prevent this
crime.
Unfortunately, there are a few bad apples out there.
Employer fraud is not a victim-less crime: Scotiabank pays a price and
ultimately consumers do, too, since it costs us all to maintain high-
security measures to guard against it. Scotiabank would rather not have
to spend that money and hence offer customers lower fees.
Hacker Attack -- widespread
We apologize for any financial losses and any inconvenience or stress to
our customers.
Scotiabank’s first priority is that customers/clients do not suffer financial
loss.
Scotiabank has a policy of full reimbursement for such losses. We intend
to make this process as customer-friendly as possible.
Scotiabank spends about $100 million a year to safeguard the accounts
of customers and its banking systems, constantly investing in leading-
edge technology to combat this criminal activity. We also hire the best
and brightest in this field.
We are launching a full investigation to ensure we have taken every
possible step to help prevent this from happening again.
Hacker attacks are illegal. It’s not fun and games. These people are
criminals and are breaking the law. If anyone has information about such
criminals, please contact the police.
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Successful class-action lawsuit over overtime
In the event of a victory in the class-action lawsuit over unpaid overtime
to some 5,000 employees, we will honour any decision of the court once
all the legal processes are complete.
Although we don’t agree with the court’s decision, we will honour it and
pay all monies ordered by the court as quickly as possible.
Scotiabank prides itself on being a good employer, providing a safe,
healthy and rewarding work environment where all hard-working
employees can advance their careers.
Scotiabank cares about its employees and we constantly review our pay
policies to ensure they are treated fairly. We pay competitive wages for
our industry.
We have reviewed our policies regarding employee overtime to ensure
there is clear communication between everyone regarding the rules.
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Pre-Prepared Media Statements – Top-3 Risks
Major case of Employee Fraud
Canadians have entrusted their money with Scotiabank for more than 170 years. We take our
obligation of earning that trust very seriously.
Scotiabank takes it very seriously when one of its own defrauds the company. We assure you
that no customers will be left out of pocket by this criminal act of fraud. We apologize if any of our loyal
customers have been affected and we will do everything we can to alleviate any stress this unfortunate
incident has caused.
Scotiabank already has some of the toughest security measures in Canada and the world to
guard against employee fraud. We assure you that we are launching a full investigation to determine
how these stringent safeguards were bypassed in this rare occurrence. We will be reviewing our security
measures to ensure every possible safeguard is in place to help prevent this type of criminal act again.
Scotiabank also has strict hiring and screening practices in place; these are also being reviewed with an
eye to identifying if any additional measures are necessary.
We also assure you that we are co-operating fully with police and Canada’s banking regulators,
at the same time that we are launching our own investigation.
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Pre-Prepared Media Statements – Top-3 Risks
Major hacker attack
There has been a criminal attack by a hacker on Scotiabank’s computer system, shutting down
the system and resulting in financial losses to the bank.
We apologize if any customer has been harmed or inconvenienced by this criminal act. We
assure you that no customer will be out of pocket by this incident. We have a policy of fully reimbursing
losses to customers due to online fraud. We take this guarantee very seriously.
We are co-operating fully with police, including the RCMP’s Internet fraud task force. We are
hopeful that these criminals will be caught and prosecuted.
Meanwhile, we have launched our own investigation into this rare incident. Scotiabank spends
about $100 million a year to safeguard its complex computer systems. We have in place some of the
toughest security measures for banks in Canada and around the world. However, we will be reviewing
our various security measures to see if there are additional safeguards we can put in place.
As you can appreciate, we will not be discussing how these criminals got around our stringent
security measures, nor the financial loss. Suffice it to say that we will be leaving no stoned unturned to
get to the bottom of what happened and catch these criminals.
Again, we want to ensure all our customers that their money is safe with us. Unfortunately,
there are criminals out there who seek to steal from hard-working Canadians.
We encourage anyone with information about hackers to contact the police.
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Pre-Prepared Media Statements – Top-3 Risks
Successful Class-Action Lawsuit over Unpaid Overtime
Canada’s courts have spoken and we respect their decision.
Scotiabank has been a good corporate citizen and a good employer for more than 170 years.
Our corporate values stress the importance of our employees, who make us the well-respected and
successful company that we are. Our success depends on our employees.
This has been a difficult issue.
While we may not agree with the court’s decision, we will respond quickly to make the
payments the courts have ordered. Employees will not have to wait long to receive their compensation.
Since this court action was commenced a number of years ago, Scotiabank has carefully
reviewed its policies, procedures and guidelines regarding overtime. We have improved those policies to
open up the channels of communication regarding overtime to ensure they are clearly understood.
Banking is an exciting business to be in, and Scotiabank offers many rewarding careers for a
diverse workforce. We take pride in our employees. We take pride in being considered a good place to
work. Our goal is to reward that pride.
34 Scotiabank Crisis Communications Plan
New Release
FOR IMMEDIATE RELEASE Headline goes here . . .
TORONTO (XXxx) . . . Xxxxxx
Scotiabank (www.scotiabank.com) is one of North America's premier financial institutions and Canada's
most international bank. With close to 68,000 employees, Scotiabank Group and its affiliates serve
approximately 14.6 million customers in some 50 countries around the world. Scotiabank offers a diverse
range of products and services including personal, commercial, corporate and investment banking. With
more than $507 billion in assets (as at January 31, 2010), Scotiabank trades on the Toronto (BNS) and
New York Exchanges (BNS).
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For more information, contact:
Deborah Clark, Manager, Public Affairs, Scotiabank, 416-933-0646 or [email protected]
35 Scotiabank Crisis Communications Plan
Dark website
Scotiabank has put in place a so-called Dark Website which can be switched on to go live in a
time of crisis. Because Scotiabank is a large organization facing a multiple vulnerabilities and risks, we
have invested time and resources to develop several dark websites for different scenarios. All websites
will be in French as well as English. Although these will be set up in advance, communications teams will
have to include bilingual representatives to add French content during a crisis.
1. Scotiabanksecure.ca
This website can go live in the several situations. It will be hosted on its own secure servers, with
an alternative server on an external device:
Hacking attack that affects or compromises the security of a large portion of our system;
Widespread computer crash that largely shuts down our ability to do business;
Widespread Internet banking crash, also largely shutting down that side of our business;
2. Scotiabankhealth.ca
This website can go live in the event of a pandemic. Such a pandemic could hit our Toronto head
office and GTA-based branches, or it could hit head offices in other countries we do business.
3. Scotiabankbusiness.ca
This website can go live in the case of severe financial crises. Although these may be considered
unlikely due to the close regulation that Canadian Tier I banks fall under, we must have a plan
for one of these eventualities.
Stock market crash: A stock market crash such as the one of September 2008, where
many of our customers saw 40-50% of their retirement or investment accounts
disappear in a short period of time has the potential to create panic and hurt our
business.
Widespread banking crisis: Similarly a widespread crisis that hits financial markets and
Canadian banking, or a drastic shift in government or Bank of Canada policies, could
have a major impact on our operation and again create panic among clients and
employees.
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These websites will contain our corporate logo and name but will remain simple in design. It will
be laid out simply and logically with sparse amounts of information. One or two members of our crisis
communications team in the Emergency Operations Centre should be able to quickly add information to
get our messages out to the intended audiences.
The websites should contain:
General background information on Scotiabank, history of company, list of top
corporate managers, list of board of directors, our list of services, our global reach,
along with basic up-to-date business facts;
Our corporate vision, mission statement and mandate;
Information on the issue at hand;
Our key messages regarding the issue at hand;
Media area containing photos of key executives or spokespeople, along with space to
post up-to-date news releases, photos, videos and podcasts;
Pre-prepared draft news releases/statements for different scenarios;
Frequently asked questions;
Press contact area;
Links to Twitter, YouTube and Flickr so that we can get our message out when necessary
across multiple platforms and quickly.
RSS feed capability so that users, including the media, can sign up for update alerts
instead of having to go back frequently to check for updates on their own.