Introduction to Business Contingency Planning, Crisis Management and Disaster Recovery

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Introduction toBusiness Contingency
Planning,Crisis Managementand Disaster Recovery

• The information contained in this and any other
  communication is for evaluation and consideration
  purposes only. It is not intended, nor should it
  be construed as providing legal advice or
  warranting any level of safety or regulatory
  compliance. The sole purpose of such information
  is to assist with the identification, evaluation
  and control of serious or unnecessary hazards.
  Any action taken based on this information,
  including but not limited to opinions,
  suggestions and recommendations, whether implied
  or expressed, is the sole responsibility of the
  individual taking the action. Safety
  determinations are unique to each individual
  based on their respective level of knowledge,
  values and situation. Some materials in this
  presentation have been altered to protect
  privacy. Sources of information available upon
  request.

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Emergencies, Crises and Disasters

• Bomb Threats
• Civil Disruptions
• Chemical Spills
• Earthquakes
• Equipment Failure
• Explosions
• Fatalities

• Fires
• Floods
• Labor Violence
• Power Failures
• Robberies
• Storms
• Strikes

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Risk Realities

• Contrary to popular belief, risk is an
  obscure, ambiguous and ill defined human concept
  that does not exist in nature and can not be
  scientifically measured. It is a function of
  probability and consequence, where probability is
  a function of human knowledge and consequence is
  a function of human values. No technology,
  methodology or procedure currently exists for the
  consistent and uniform measurement of risk

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Business Risk Management

• Business risks can be broadly classified as
• Risks to personnel
• Risks to processes
• Risks to property
• Risk to products

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Business Risk Categorization (People, Processes,
Property, Products)
Business Risk Factors (4 Ps)
Personnel
Processes
Property
Products

• Transportation
• Method
• Cost
• Security
• Regulatory
• Recall
• Availability
• Insurability
• Capability
• Distribution

• Performance
• Warranties
• Liability
• Contractual
• Insurability
• Barker Test
• Longevity
• Security
• Independent
• Testing

• Materials
• Security
• Raw Materials
• Waste
• Regulatory
• Security
• Intellectual

• Equipment
• Regulatory
• Reliability
• Communications
• Efficiency
• Speed
• Fire
• Security
• Power
• Performance
• Capability

• Storage
• Flooding
• Location
• Fire
• Regulatory
• Insurability
• Security
• Accessibility

• Transportation
• Raw Materials
• Hazardous Waste
• Regulatory
• Availability
• Timeliness
• Security
• Capability

• Availability
• Wages
• Accessibility
• Regulatory
• Food
• Security
• Parking
• Public Trans.
• Hours
• Child Care
• Private Trans.
• Housing
• Health Care
• Competition

• Qualifications
• Education
• Experience
• Age
• Physical Abilities
• Security
• Union

• Protection
• Security
• Sanitation
• HVAC
• Lighting
• Ergonomics
• Regulatory
• Safety
• Insurability
• Material Handling
• Noise
• Radiation
• Falls

• Sales
• Regulatory
• Marketing
• Recall
• Contracts
• Security

• Building
• Power
• Sewer
• Water
• Security
• Size
• Conflagration
• Regulatory
• Flooding
• Occupancy
• Weather
• Earthquake
• Location
• Accessibility
• Fire Protection
• Independent Testing

• Manufacturing
• Continuity
• Regulatory
• Efficiency
• Power
• Cooling
• Heating
• Capacity
• Effluents
• Security

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Risk Control Procedures

• Procedural sequence
• Risk identification categorization
• Risk evaluation prioritization
• Risk mitigation minimization
• Risk review alteration

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Risk Identification Categorization

• Identify the risks to the personnel,
• processes, property and products.
• Categorize the risks based on the criteria of the
  threats posed.

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Risk Evaluation Prioritization

• Conduct risk assessments for personnel,
• processes, property and products based
• on established criteria .
• Prioritize the resultant findings according to
  probability and consequence.

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Risk Mitigation Minimization

• Develop options for mitigating identified
  risks.
• Develop options for minimizing identified risks.

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Risk Review Alteration

• Review prioritized risks in light of
• mitigation and minimization options
• available.
• Alter mitigation and minimization options
• to prioritized risks to optimize the
• effectiveness of available assets.

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Contingency Planning

• The principal purpose of Contingency Planning
  is the mitigation and minimization of
  consequences resulting from an unexpected and
  undesirable event through preplanning and
  preparation.

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Contingency Planning

• Special Considerations
• Assemble planning, management and recovery group
• Designate a senior executive to serve in the
  group
• Establish special accounting codes
• Identify and train company spokespersons and
  personnel
• Obtain legal privilege for group activities
• Provide group with inventories, processes,
  clients etc.
• Prepare alternative communications mechanisms
• Provide for access and protection of company
  documents
• Prepare to maintain records and activity logs

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Contingency Planning

• Special Considerations
• Ensure emergency water, food and shelter will be
  available
• Consider establishment of alternative locations
  or hot sites
• Anticipate the personal and family needs of
  employees
• Create cash reservoirs
• Establish emergency locations, materials and
  equipment
• Develop specific contingency plans for probable
  losses
• Identify scope and limitations of plans
• Designate a specific plan maintenance person
• Identify critical personnel, equipment,
  facilities resources

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Contingency Planning

• Special Considerations
• Establish a list of outside support resources
• Be prepared to record all inquiry sources
• Inform personnel that spokesperson makes all
  statements
• Prepare to monitor all news and information
  services
• Be ready to record all public interviews and news
  releases
• Establish special communications for clients
  employees
• Be prepared to turn over facilities and equipment
• Maintain a media resource list
• Designate and train responders and investigators

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Crisis Management

• The principal purpose of Crisis Management is
  the mitigation and minimization of consequences
  resulting from an unexpected and undesirable
  event through real time and judicious resource
  management.

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Crisis Management

• Special Considerations
• Activate the planning, management and recovery
  group
• Open special accounting codes
• Designate and publicize the companys
  spokesperson
• Obtain legal privileged status for the group
• Provide group with applicable and needed
  information
• Select and implement best communications
  methodologies
• Establish mechanisms to protect remaining company
  assets
• Initiate recording of interviews and actions
  taken
• Open access to emergency supplies if warranted

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Crisis Management

• Special Considerations
• Pick location for group meetings and oversight
• See to the needs of employees, clients and
  customers
• Open access to cash accounts if necessary
• Identify personnel, equipment, facilities and
  materials needed
• Notify appropriate regulatory authorities and
  media
• Record calls, interviews, contacts and news
  reports
• Put outside support personnel and resources on
  notice
• Establish loss estimates or projections
• Alert responders and investigators

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Crisis Management

• Special Considerations
• Arrange for special transportation needs
• Implement special communications methodologies
• Do not release unsubstantiated, false or
  misleading information
• Institute emergency shutdown procedures
• Contact offsite operations
• Notify insurers, suppliers and transporters
• Activate backup locations or hot sites
• Notify employees, clients and customers
• Secure business records

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Disaster Recovery

• The principal purpose of Disaster Recovery is
  the mitigation and minimization of consequences
  resulting from an unexpected and undesirable
  event through the recovery of surviving assets.

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Disaster Recovery

• Special Considerations
• Document all time, expenses and damages
• Obtain refurbishing, replacement and rebuilding
  estimates
• Review insurance policies for coverage
• Organize and publicize recovery program
  activities
• Inform employees, suppliers and transporters of
  recovery
• Contact regulatory agencies regarding intentions
• Inspect areas for additional hazards
• Establish asset recovery teams
• Contact the insurers claims department

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Disaster Recovery

• Special Considerations
• Assist laid off employees with reemployment
• Use recovery to improve facilities, operations
  and products
• Notify architects, engineers and planners
• Alert other locations or hot sites of recovery
  status
• Provide for short term employee support and
  housing
• Consider relocation and facility upgrade options
• Prepare and review incident report rights
  wrongs
• Establish security for damaged areas
• Beware of the presence of hazardous materials

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Disaster Recovery

• Special Considerations
• Photograph all damaged equipment and materials
• Keep unauthorized personnel out of damaged area
• Keep management apprised of activities and
  decisions
• Establish a specific recovery date
• Arrange for regulatory inspections and compliance
• Provide trauma counseling services
• Contact hazardous waste removal contractors and
  haulers
• Utilize outside contractors for highly hazardous
  work
• Create employee exposure logs

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Knowledge is the Best Defense

• In Business Continuity Planning, Crisis
  Management and Disaster Recovery,
• anticipate the unexpected. Seldom do emergencies,
  crises and disasters proceed as we might expect.
  To minimize or mitigate their consequences,
  knowledge is the best defense.

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Questions?