The Client and Its Challenge
An American consumer energy company with more than 1.8 million customers in three states had begun to strengthen its crisis management capabilities by engaging Marsh's Crisis Consulting practice for planning, training, and other activities, when it suddenly faced government allegations of ineffective management during a crisis situation at one of its facilities. State regulators cited the company for several violations and threatened a fine of up to $1 million, pending the outcome of investigations and hearings.

The Risk Consulting Solution
The client immediately turned to Marsh's consultants for additional assistance in response to the allegations. Marsh recommended the Incident Command System (ICS) as a means of coordinating the actions of the company's field service representatives (FSRs) within the context of the corporate management system that Marsh was already developing. To implement Marsh's recommendation, the company requested Marsh experts to adapt ICS to its operating environment, integrate ICS into its new crisis management structure, and support the rollout to FSRs and supervisory management.

Results
At the briefing with state regulators, the company successfully demonstrated that its new ICS and crisis management program enabled it to manage future crises effectively. Consequently, the regulators reduced the fine to $30,000, approximately $970,000 less than the initially suggested penalty. With Marsh's timely and thorough assessment and execution, the client achieved the best possible outcome from what could have been a very costly loss.