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Your 5 Day Forecast: Risks, Perils, and your Probability of Loss Hilton Brown and Steven Korasidas
Agenda 1» Business Continuity Planning (Hilton Brown)
2» Crisis Management (Hilton Brown) 3» Disaster Recovery (Steve Korasidas)
2014 | page 2
Section 1» Business Continuity Planning
2014 | page 3
Photo courtesy of Carbon Fibre Media https://www.flickr.com/photos/carbonfibreme/11163170385/in/photolist-i1saCV-fWtN1k-qF3u9-qF3uR-qF3vb-qF3v2-qF3u3-dtUWaF-dtUWnM-bHEm8v-4eN4R9-dtUW24-du1vksdtUWwP-8HwmoG-6jNJ1r-fJ2W6Y-nSvGD5-fHKmaX-hdaP1-fJ2VqU-fJ2USj-8TLyzM-du1rJu-du1t6o-dtUTtV-dtUTJR-du1sEC-du1rQQ-du1tf9-du1so5-dtUTTT-dtUTbz-du1rYodu1s7J-dtUUmg-eQ2grq-ePPN9a-ePPQxR-ePPNi6-eQ2ejJ-neNjbE-eQ2g8s-ePPPKx-eQ2hDU-ePPNZa-ePPRTg-eQ2fvU-eQ2hGG-eQ2eQ7/
2014 | page 4
7 Business Continuity Planning Actions You Must Take 1. Management Support –
Building a common base of understanding throughout the organization to business continuity planning is very important at all levels and will keep an organization’s resiliency efforts intact.
2. Business Impact Analysis (BIA) –
BIA is your first step to quantify and qualify the potential impacts of a loss from a critical functions point of view.
–
It addresses the “What now?” scenario right out of the gate.
2014 | page 5
7 Business Continuity Planning Actions You Must Take 3. Risk Assessment –
This exercise identifies potential risks and evaluates threats/risks from both an internal and external perspective.
–
It also prioritizes potential dangers.
4. Action Plan –
The BIA and Risk Assessment will assist you with creating an action plan capable of returning you to full operation post-event as quickly as possible.
2014 | page 6
7 Business Continuity Planning Actions You Must Take 5. Crisis Management –
Employees will play a vital role in recovery. A capable crisis team should be identified and engaged during planning to: •
Lead mobilization efforts during an “event”
•
Stabilize the situation to the best of their collective abilities
•
Communicate important updates internally and externally
•
Control and organize recovery efforts.
2014 | page 7
7 Business Continuity Planning Actions You Must Take 6. Training – Educating employees and training them in their areas of responsibility is very important. – Evacuation exercises, full scale response scenarios, safety drills, etc. will help identify what aspects of your plan work and which ones don’t. – Make sure your emergency response partners are familiar with your organizations’ layout, business functions, critical equipment and expectations.
7. Maintenance and Testing – Testing, management, and updating of the plan should happen regularly. – Business Continuity Planning should never be considered a task complete. 2014 | page 8
Section 2 » Crisis Management
2014 | page 9
The Components of Business Continuity Management
BCP IT Disaster Recovery
Crisis Management
Emergency Response 2014 | page 10
Business Continuity Planning (BCP)
The Components of Business Continuity Management • Business Continuity Planning – Identify impact of potential business interruptions – Formulate recovery strategies – Develop BCP – Administer training, exercise and maintenance process
• IT Disaster Recovery
BCP IT Disaster Recovery Crisis Management
Emergency Response
– Technical aspects of BCP
– Focus on restoration of data center services and computer processing capabilities documents in Disaster Recovery Plan
• Crisis Management – Strategically manage response after an event, including communications, to protect brand and reputation
• Emergency Response – Coordinated, effective, and timely response to an emergency – Minimize injury to personnel and damage to corporate assets
2014 | page 11
Business Continuity Timeline
Detection
Emergency Response
Recovery
Life Safety and Facility Issues
Crisis Management Strategic Response and Analysis
Business Continuity/IT DR Tactical Response and Resumption
Minutes 2014 | page 12
Hours
Weeks
VENDOR’s BCM Maturity Spectrum • The VENDOR Maturity Spectrum allows for right planning to fit with the organization’s business goals including the: – Planning budget – Resources – Effort.
Tony Adame from Ripcord, LLC. ACP, 9th Annual Readiness Workshop, Assessing and Guarding Your Supply Chain: A Business Continuity Perspective, May 14, 2014
2014 | page 13
Analyzing Vendors Exercise several possible scenarios e.g. full or partial loss
Who are my critical vendors?
Document workarounds – if any
What happens if they are unavailable?
What are my options? 2014 | page 14
Tony Adame from Ripcord, LLC. ACP, 9th Annual Readiness Workshop, Assessing and Guarding Your Supply Chain: A Business Continuity Perspective, May 14, 2014
Consider The Whole Picture Human Capital Business Interruption
HR Issues
Public Relations 2014 | page 15
Key Personnel
IT Recovery
Supply Chain
Section 3 » Disaster Recovery
2014 | page 16
Main Elements of Disaster Preparedness
Life Safety
Buildings/ Infrastructure
2014 | page 17
Business Continuity Plans
THE IMPACT OF A DISASTER
2014 | page 18
• Fire
• Flooding
• Tornado
• Hurricane
• Other Natural Disasters
FIRE
2014 | page 19
TORNADOS
2014 | page 20
2014 | page 21
Tornado – Downtown Atlanta
Windsor, Colorado Tornado
2014 | page 22
EARTHQUAKES
2014 | page 23
Top Earthquake States States with the most quakes 1. Alaska 2. California 3. Hawaii 4. Nevada
5. Washington 6. Idaho 7. Wyoming 8. Montana
9. Utah 10. Oregon USGS, National Seismic Hazard Mapping Project, http://earthquake.usgs.gov/earthquakes/states/top_states.php
2014 | page 24
Earthquake Effects Richter magnitudes
Description
Earthquake effects
Frequency of occurrence
Less than 2.0
Micro
Microearthquakes, not felt.
About 8,000 per day
Generally not felt, but recorded.
About 1,000 per day
Often felt, but rarely causes damage.
49,000 per year (est.)
2.0-2.9 Minor
3.0-3.9 4.0-4.9
Light
Noticeable shaking of indoor items, rattling noises. Significant damage unlikely.
6,200 per year (est.)
5.0-5.9
Moderate
Can cause major damage to poorly constructed buildings over small regions. At most slight damage to well-designed buildings.
800 per year
6.0-6.9
Strong
Can be destructive in areas up to about 160 kilometres (100 mi) across in populated areas.
120 per year
7.0-7.9
Major
Can cause serious damage over larger areas.
18 per year
Can cause serious damage in areas several hundred miles across.
1 per year
8.0-8.9 Great 9.0-9.9 10.0+
Epic
Devastating in areas several thousand miles across. Never recorded; see below for equivalent seismic energy yield.
1 per 20 years Extremely rare (Unknown)
USGS: FAQ- Measuring Earthquakes, http://earthquake.usgs.gov/learn/faq/?categoryID=2
2014 | page 25
HURRICANES
2014 | page 26
Saffir-Simpson Hurricane Scale • Storms are classified as hurricanes once their sustained winds top 74 mph The Ratings: Category 1
Winds 74-95 mph
Category 2
Winds 96-110 mph
Category 3
Winds 111-129 mph
Category 4
Winds 130-156 mph
Category 5
Winds 157 or higher
• The highest sustained Atlantic hurricane winds ever recorded were 190 mph in 1969 and 1980 Source: National Hurricane Center http://www.nhc.noaa.gov/aboutsshws.php
2014 | page 27
2014 | page 28
2014 | page 29
Hurricane Damage
2014 | page 30
Hurricane Damage
What You Should Expect From Your Partners During A Recovery Project • A plan to get critical business up and running • Advance Work Order • Site assessments • Timely Scope of Work (estimated cost) • Precise job schedules • Daily Field Reports • Accurate invoices and billing documentation • Supply all necessary back up documentation to support our work product for the claims process 2014 | page 31
Typical process flow
Loss event happens Contact Emergency Response Partner
Billing submitted and wrap up meeting with client
Job complete
2014 | page 32
Your Partner acknowledges receipt of assignment and initiates response
Response team on site and performs assessment to determine proper response. Estimate cost to generate PO
Premitigation meeting to understand what building is used for, hazard exposures, contents awareness.
Mitigation, testing, dry down monitoring and documentation continue to conclusion
Mitigation and restoration continues as directed and Emergency Response team leaders meet with Client POC's daily or as agreed
Mitigate loss, prevent further damage, prepare full scope of loss and estimate. Depending on size of job Emergency Partner meets with Client crisis mgmt team, Insurance contacts, other experts to review damage and agree on scope and pricing
Emergency Pre-planning Checklist Current vendor relationships with contact information (elevator, sprinklers, security, etc.) Key onsite contact information and address for all properties List of all properties with square footage, age, and condition of building Insurance Company/Broker contact information and deductible Certificate of Insurance for each building Set up Interstate in your purchasing system
Emergency access letter for area wide catastrophe’s Determine in advance any special needs for your company
2014 | page 33
A Loss of Power - Understanding The Real Impact To Your Business • A loss of power can quickly bring operations to a halt • Pre-planning helps return your company back to business quickly • Securing temporary power takes more than a generator; know the hidden costs
2014 | page 34
Five Steps Towards Successful Power Needs
Step 1: Generators
Step 2: Transportation Step 3: Fuel and Maintenance Step 4: Installation/Electrical Hookup Step 5: Power
2014 | page 35
A Generator Can Be a Good Decision • What is your true business interruption costs? • Consider the impacts – Lost revenue and business opportunities – Loss of customer and partner goodwill – Loss of employees and/or employee morale
– Competitive disadvantage – Pay overtime to make up for lost productivity or late delivery surcharges
2014 | page 36
TEMPORARY WALLS TO KEEP OPERATIONAL
2014 | page 37
THE FINISHED PRODUCT
2014 | page 38
2014 | page 39
Questions
Thank You!
2014 | page 40
Agenda 1» Business Continuity Planning (Hilton Brown)
2» Crisis Management (Hilton Brown) 3» Disaster Recovery (Steve Korasidas)
2014 | page 2
Section 1» Business Continuity Planning
2014 | page 3
Photo courtesy of Carbon Fibre Media https://www.flickr.com/photos/carbonfibreme/11163170385/in/photolist-i1saCV-fWtN1k-qF3u9-qF3uR-qF3vb-qF3v2-qF3u3-dtUWaF-dtUWnM-bHEm8v-4eN4R9-dtUW24-du1vksdtUWwP-8HwmoG-6jNJ1r-fJ2W6Y-nSvGD5-fHKmaX-hdaP1-fJ2VqU-fJ2USj-8TLyzM-du1rJu-du1t6o-dtUTtV-dtUTJR-du1sEC-du1rQQ-du1tf9-du1so5-dtUTTT-dtUTbz-du1rYodu1s7J-dtUUmg-eQ2grq-ePPN9a-ePPQxR-ePPNi6-eQ2ejJ-neNjbE-eQ2g8s-ePPPKx-eQ2hDU-ePPNZa-ePPRTg-eQ2fvU-eQ2hGG-eQ2eQ7/
2014 | page 4
7 Business Continuity Planning Actions You Must Take 1. Management Support –
Building a common base of understanding throughout the organization to business continuity planning is very important at all levels and will keep an organization’s resiliency efforts intact.
2. Business Impact Analysis (BIA) –
BIA is your first step to quantify and qualify the potential impacts of a loss from a critical functions point of view.
–
It addresses the “What now?” scenario right out of the gate.
2014 | page 5
7 Business Continuity Planning Actions You Must Take 3. Risk Assessment –
This exercise identifies potential risks and evaluates threats/risks from both an internal and external perspective.
–
It also prioritizes potential dangers.
4. Action Plan –
The BIA and Risk Assessment will assist you with creating an action plan capable of returning you to full operation post-event as quickly as possible.
2014 | page 6
7 Business Continuity Planning Actions You Must Take 5. Crisis Management –
Employees will play a vital role in recovery. A capable crisis team should be identified and engaged during planning to: •
Lead mobilization efforts during an “event”
•
Stabilize the situation to the best of their collective abilities
•
Communicate important updates internally and externally
•
Control and organize recovery efforts.
2014 | page 7
7 Business Continuity Planning Actions You Must Take 6. Training – Educating employees and training them in their areas of responsibility is very important. – Evacuation exercises, full scale response scenarios, safety drills, etc. will help identify what aspects of your plan work and which ones don’t. – Make sure your emergency response partners are familiar with your organizations’ layout, business functions, critical equipment and expectations.
7. Maintenance and Testing – Testing, management, and updating of the plan should happen regularly. – Business Continuity Planning should never be considered a task complete. 2014 | page 8
Section 2 » Crisis Management
2014 | page 9
The Components of Business Continuity Management
BCP IT Disaster Recovery
Crisis Management
Emergency Response 2014 | page 10
Business Continuity Planning (BCP)
The Components of Business Continuity Management • Business Continuity Planning – Identify impact of potential business interruptions – Formulate recovery strategies – Develop BCP – Administer training, exercise and maintenance process
• IT Disaster Recovery
BCP IT Disaster Recovery Crisis Management
Emergency Response
– Technical aspects of BCP
– Focus on restoration of data center services and computer processing capabilities documents in Disaster Recovery Plan
• Crisis Management – Strategically manage response after an event, including communications, to protect brand and reputation
• Emergency Response – Coordinated, effective, and timely response to an emergency – Minimize injury to personnel and damage to corporate assets
2014 | page 11
Business Continuity Timeline
Detection
Emergency Response
Recovery
Life Safety and Facility Issues
Crisis Management Strategic Response and Analysis
Business Continuity/IT DR Tactical Response and Resumption
Minutes 2014 | page 12
Hours
Weeks
VENDOR’s BCM Maturity Spectrum • The VENDOR Maturity Spectrum allows for right planning to fit with the organization’s business goals including the: – Planning budget – Resources – Effort.
Tony Adame from Ripcord, LLC. ACP, 9th Annual Readiness Workshop, Assessing and Guarding Your Supply Chain: A Business Continuity Perspective, May 14, 2014
2014 | page 13
Analyzing Vendors Exercise several possible scenarios e.g. full or partial loss
Who are my critical vendors?
Document workarounds – if any
What happens if they are unavailable?
What are my options? 2014 | page 14
Tony Adame from Ripcord, LLC. ACP, 9th Annual Readiness Workshop, Assessing and Guarding Your Supply Chain: A Business Continuity Perspective, May 14, 2014
Consider The Whole Picture Human Capital Business Interruption
HR Issues
Public Relations 2014 | page 15
Key Personnel
IT Recovery
Supply Chain
Section 3 » Disaster Recovery
2014 | page 16
Main Elements of Disaster Preparedness
Life Safety
Buildings/ Infrastructure
2014 | page 17
Business Continuity Plans
THE IMPACT OF A DISASTER
2014 | page 18
• Fire
• Flooding
• Tornado
• Hurricane
• Other Natural Disasters
FIRE
2014 | page 19
TORNADOS
2014 | page 20
2014 | page 21
Tornado – Downtown Atlanta
Windsor, Colorado Tornado
2014 | page 22
EARTHQUAKES
2014 | page 23
Top Earthquake States States with the most quakes 1. Alaska 2. California 3. Hawaii 4. Nevada
5. Washington 6. Idaho 7. Wyoming 8. Montana
9. Utah 10. Oregon USGS, National Seismic Hazard Mapping Project, http://earthquake.usgs.gov/earthquakes/states/top_states.php
2014 | page 24
Earthquake Effects Richter magnitudes
Description
Earthquake effects
Frequency of occurrence
Less than 2.0
Micro
Microearthquakes, not felt.
About 8,000 per day
Generally not felt, but recorded.
About 1,000 per day
Often felt, but rarely causes damage.
49,000 per year (est.)
2.0-2.9 Minor
3.0-3.9 4.0-4.9
Light
Noticeable shaking of indoor items, rattling noises. Significant damage unlikely.
6,200 per year (est.)
5.0-5.9
Moderate
Can cause major damage to poorly constructed buildings over small regions. At most slight damage to well-designed buildings.
800 per year
6.0-6.9
Strong
Can be destructive in areas up to about 160 kilometres (100 mi) across in populated areas.
120 per year
7.0-7.9
Major
Can cause serious damage over larger areas.
18 per year
Can cause serious damage in areas several hundred miles across.
1 per year
8.0-8.9 Great 9.0-9.9 10.0+
Epic
Devastating in areas several thousand miles across. Never recorded; see below for equivalent seismic energy yield.
1 per 20 years Extremely rare (Unknown)
USGS: FAQ- Measuring Earthquakes, http://earthquake.usgs.gov/learn/faq/?categoryID=2
2014 | page 25
HURRICANES
2014 | page 26
Saffir-Simpson Hurricane Scale • Storms are classified as hurricanes once their sustained winds top 74 mph The Ratings: Category 1
Winds 74-95 mph
Category 2
Winds 96-110 mph
Category 3
Winds 111-129 mph
Category 4
Winds 130-156 mph
Category 5
Winds 157 or higher
• The highest sustained Atlantic hurricane winds ever recorded were 190 mph in 1969 and 1980 Source: National Hurricane Center http://www.nhc.noaa.gov/aboutsshws.php
2014 | page 27
2014 | page 28
2014 | page 29
Hurricane Damage
2014 | page 30
Hurricane Damage
What You Should Expect From Your Partners During A Recovery Project • A plan to get critical business up and running • Advance Work Order • Site assessments • Timely Scope of Work (estimated cost) • Precise job schedules • Daily Field Reports • Accurate invoices and billing documentation • Supply all necessary back up documentation to support our work product for the claims process 2014 | page 31
Typical process flow
Loss event happens Contact Emergency Response Partner
Billing submitted and wrap up meeting with client
Job complete
2014 | page 32
Your Partner acknowledges receipt of assignment and initiates response
Response team on site and performs assessment to determine proper response. Estimate cost to generate PO
Premitigation meeting to understand what building is used for, hazard exposures, contents awareness.
Mitigation, testing, dry down monitoring and documentation continue to conclusion
Mitigation and restoration continues as directed and Emergency Response team leaders meet with Client POC's daily or as agreed
Mitigate loss, prevent further damage, prepare full scope of loss and estimate. Depending on size of job Emergency Partner meets with Client crisis mgmt team, Insurance contacts, other experts to review damage and agree on scope and pricing
Emergency Pre-planning Checklist Current vendor relationships with contact information (elevator, sprinklers, security, etc.) Key onsite contact information and address for all properties List of all properties with square footage, age, and condition of building Insurance Company/Broker contact information and deductible Certificate of Insurance for each building Set up Interstate in your purchasing system
Emergency access letter for area wide catastrophe’s Determine in advance any special needs for your company
2014 | page 33
A Loss of Power - Understanding The Real Impact To Your Business • A loss of power can quickly bring operations to a halt • Pre-planning helps return your company back to business quickly • Securing temporary power takes more than a generator; know the hidden costs
2014 | page 34
Five Steps Towards Successful Power Needs
Step 1: Generators
Step 2: Transportation Step 3: Fuel and Maintenance Step 4: Installation/Electrical Hookup Step 5: Power
2014 | page 35
A Generator Can Be a Good Decision • What is your true business interruption costs? • Consider the impacts – Lost revenue and business opportunities – Loss of customer and partner goodwill – Loss of employees and/or employee morale
– Competitive disadvantage – Pay overtime to make up for lost productivity or late delivery surcharges
2014 | page 36
TEMPORARY WALLS TO KEEP OPERATIONAL
2014 | page 37
THE FINISHED PRODUCT
2014 | page 38
2014 | page 39
Questions
Thank You!
2014 | page 40
