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Introduction to Business Contingency Planning, Crisis Management and Disaster Recovery

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The information contained in this and any other communication is for evaluation ... Contact hazardous waste removal contractors and haulers ... – PowerPoint PPT presentation

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Title: Introduction to Business Contingency Planning, Crisis Management and Disaster Recovery


1
Introduction to Business Contingency
Planning, Crisis Management and 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.

2
Emergencies, Crises and Disasters
  • Bomb Threats
  • Civil Disruptions
  • Chemical Spills
  • Earthquakes
  • Equipment Failure
  • Explosions
  • Fatalities
  • Fires
  • Floods
  • Labor Violence
  • Power Failures
  • Robberies
  • Storms
  • Strikes

3
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…

4
Business Risk Management
  • Business risks can be broadly classified as
  • Risks to personnel
  • Risks to processes
  • Risks to property
  • Risk to products

5
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

6
Risk Control Procedures
  • Procedural sequence
  • Risk identification categorization
  • Risk evaluation prioritization
  • Risk mitigation minimization
  • Risk review alteration

7
Risk Identification Categorization
  • Identify the risks to the personnel,
  • processes, property and products.
  • Categorize the risks based on the criteria of the
    threats posed.

8
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.

9
Risk Mitigation Minimization
  • Develop options for mitigating identified
    risks.
  • Develop options for minimizing identified risks.

10
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.

11
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.

12
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

13
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

14
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

15
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.

16
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

17
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

18
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

19
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.

20
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

21
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

22
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

23
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.

24
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