Developing an Emergency Management Plan

Richard G. ZilgDeputy District Director, New Jersey

Developing an Emergency Management Plan

Up to 40% of businesses affected

by a natural or human-caused disaster never

reopen. (Source: Insurance

Information Institute)

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Developing an Emergency Management Plan

No plan can cover every eventuality, but a good one will be versatile enough to maximize your business’s chances

for survival!

There are Five elements to a successful EMP. They are….

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Developing an Emergency Management Plan

• Program Management

• Planning

• Implementation

• Testing and Exercises

• Program Improvement

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Developing an Emergency Management Plan

Program Management• Organize, develop and administer your preparedness program• Identify regulations that establish minimum requirements for your

program.• Includes the following areas:

• Program Coordinator & Committee• Performance Objectives• Program Administration• Laws & Authorities

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Developing an Emergency Management Plan

Program Management (cont)Program Coordinator & Committee

• The program coordinator should be assigned by management to lead the development of the preparedness program and will be responsible for achieving the goals and objectives that have been established by management

• The program committee will provide input into the preparedness program and will assist with the development, implementation, evaluation and maintenance of the program. The Committee should include employees with knowledge of all aspects of the business.

Performance Objectives• Performance objectives are milestones on the path to achieving your

preparedness program’s goals. Objectives should be developed for all aspects of the program. Include hazard prevention/deterrence, risk mitigation, emergency response and business continuity.

• Consider goals and objectives for managing risk, investing in resources, establishing capabilities through training and exercising and complying with regulations. Consider both short-term objectives for the development of the program and long-term objectives that may require more significant planning or investment.

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Developing an Emergency Management Plan

Program Management (cont)Program Administration

• The program coordinator is accountable to management for achieving program goals. Effective program administration is necessary to coordinate activities, review the program and initiate action to improve the program. Administration would include addressing and reviewing the following areas:• Program Scope• Program Budget• Program Development Schedule• Finance and Administrative Procedures• Program Reviews

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Developing an Emergency Management Plan

Program Management (cont)Laws & Authorities

• Federal, state and local laws and regulations define minimum requirements for emergency management and business continuity.

• The program coordinator working with the program committee and external representatives should confer with environmental, health, safety and security professionals within the business to determine which regulations are applicable and need to be incorporated into the preparedness program.

• Regulations may apply to hazard prevention, risk mitigation, emergency response and business continuity.

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Developing an Emergency Management Plan

Planning• Gather information about hazards and assess risks• Conduct a business impact analysis (BIA)• Examine ways to prevent hazards and reduce risks• Includes the following areas:

• Risk Assessment• Business Impact Analysis• Hazard Prevention & Deterrence• Risk Mitigation

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Developing an Emergency Management Plan

Planning (cont)Risk Assessment

• A risk assessment is a process to identify potential hazards and analyze what could happen if a hazard occurs. A business impact analysis (BIA) is the process for determining the potential impacts resulting from the interruption of time sensitive or critical business processes.

• As you conduct the risk assessment, look for vulnerabilities—weaknesses—that would make an asset more susceptible to damage from a hazard. Vulnerabilities include deficiencies in building construction, process systems, security, protection systems and loss prevention programs

Business Impact Analysis• A business impact analysis (BIA) predicts the consequences of disruption of a business function

and process and gathers information needed to develop recovery strategies. Potential loss scenarios should be identified during a risk assessment. Operations may also be interrupted by the failure of a supplier of goods or services or delayed deliveries. There are many possible scenarios which should be considered.

• Identifying and evaluating the impact of disasters on business provides the basis for investment in recovery strategies as well as investment in prevention and mitigation strategies.

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Developing an Emergency Management Plan

Planning (cont)Business Impact Analysis (cont)

Items to consider in the BIA:• Lost sales and income• Delayed sales or income• Increased expenses (e.g., overtime labor, outsourcing, expediting costs, etc.)• Regulatory fines• Contractual penalties or loss of contractual bonuses• Customer dissatisfaction or defection• Delay of new business plans or operations

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Developing an Emergency Management Plan

Planning (cont)Hazard Prevention & Deterrence

• Many hazards can be prevented. Occurrences such as workplace accidents, fires, hazardous chemical spills, machinery breakdowns, criminal and cyber invasion can all be avoided by good planning, security measures and/or maintenance.

• Natural hazards such as flooding, earthquakes and hurricanes cannot be prevented. However, there are still opportunities to reduce damage from natural hazards via Risk Mitigation.

Risk Mitigation• Hurricanes, earthquakes, tornadoes and other natural hazards cannot be prevented.

Technological hazards such as a regional power outage cannot be prevented by an individual business. But both can result in property damage and business disruptions. Mitigation strategies might include:• Site selection• Construction standards• Backup power, including ups units• Insurance Policies

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Developing an Emergency Management Plan

ImplementationImplementation of the preparedness program includes identifying and assessing resources, writing plans, developing a system to manage incidents and training employees so they can execute plans. These resources might include:• Resource Management: Resources needed for responding to emergencies, continuing business

operations and communicating during and after an incident should be identified and assessed.• Emergency Response Plan: Plans to protect people, property and the environment should be

developed. Plans should include evacuation, sheltering in place and lockdown as well as plans for other types of threats identified during the risk assessment.

• Crisis Communications Plan: A plan should be established to communicate with employees, customers, the news media and stakeholders.

• Business Continuity Plan: A business continuity plan that includes recovery strategies to overcome the disruption of business should be developed.

• Information Technology Plan: A plan to recover computer hardware, connectivity and electronic data to support critical business processes should be developed.

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Developing an Emergency Management Plan

Implementation (cont)

• Employee Assistance & Support: The business preparedness plan should encourage employees and their families to develop family preparedness plans. Plans should also be developed to support the needs of employees following an incident.

• Incident Management: An incident management system is needed to define responsibilities and coordinate activities before, during and following an incident.

• Training: Persons with a defined role in the preparedness program should be trained to do their assigned tasks. All employees should be trained so they can take appropriate protective actions during an emergency.

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Developing an Emergency Management Plan

Testing & ExercisesYou should conduct testing and exercises to evaluate the effectiveness of your preparedness program, make sure employees know what to do and find any missing parts. Testing the plan, and exercising its elements, helps you to:

• Train personnel; clarify roles and responsibilities• Reinforce knowledge of procedures, facilities, systems and equipment• Improve individual performance as well as organizational coordination and communications• Evaluate policies, plans, procedures and the knowledge and skills of team members• Reveal weaknesses and resource gaps• Comply with local laws, codes and regulations• Gain recognition for the emergency management and business continuity program

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Developing an Emergency Management Plan

Program ImprovementFollowing an actual incident, a critique should be conducted to assess the response to it. Lessons learned from incidents that occur within the community, within the business’ industry or nationally can identify needs for preparedness program changes. Other improvement measures include:

Program ReviewsChanges that should trigger a review of the program include the following:

• Regulatory changes• New or changed processes• New hazards identified; vulnerability to hazards changes• Tests, drills or exercises identify weaknesses• Post incident critiques identify issues• Funding or budget level changes

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Developing an Emergency Management Plan

Program Improvement (cont)Program Reviews (cont)

• New product or service launched or withdrawn• Company, division or business unit acquired, integrated or divested• Significant changes to critical suppliers or supply chain• Significant increase in the workforce population on-site• Significant changes to site, buildings or layouts• Changes to surrounding infrastructure

When doing the review, also see if:• Plans and procedures have been reviewed and are up-to-date• Team rosters have been updated to ensure membership is current• Contact information for team members, public agency contacts, contractors,

vendors and suppliers• Resources (e.g., systems, equipment, and supplies) are in place and properly

maintained

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Developing an Emergency Management Plan

Protect Yourself and Your Assets

• Generally, it takes several years to build a successful business and hours or minutes for a disaster to destroy it.

• Businesses that are unable to access their critical data for an extended period may have more difficulty recovering.

• Disasters ruin businesses and create financial hardship on families.

• Proper preparation allows businesses to recover quickly.

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Developing an Emergency Management Plan

For step by step instructions and examples:• http://www.ready.gov/business

Alternative planning, great links and recovery information:• http://www.sba.gov/content/disaster-planning

Business-focused preparedness tools & information :• www.PrepareMyBusiness.org.

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Richard G. ZilgDeputy District Director

NJ District Office2 Gateway CenterNewark NJ, 07102Tel. 973-645-2434Fax: 202-481-5171

Email: - richard.zilg@sba.govOr visit our office web site at www.sba.gov/nj

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Developing an Emergency Management Plan