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Can your Organization survive a natural disaster?
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Objectives
• Provide an overview of Business Continuity and Resumption
• Educate an emergency manager on the processes privates businesses most perform preparing for disasters
• Provide tools to a business owner to prepare for disasters
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• In recent years, the United States has faced a growing number of severe natural disasters and man-made events, presenting a variety of challenges for the nation. • The spectrum has spanned all levels of
government including federal, state, municipal and community levels ands its use of disaster response, relief, and recovery architecture.
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On average, the United States experiences ten severe weather events per year exceeding one billion dollars in damage, compared to an annual average of only two such events throughout the 1980s.
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The time to react is now!!
According to the UN for every dollar invested in disaster preparedness can save 7 dollars worth of disaster related economic loss.
(Building Resilience: the importance of prioritizing disaster risk reduction 15 Aug 2012: Helen Clark, UN Development Program Administrator)
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Be Safe - Then Sorry, Here’s Why!
• FEMA states that 40% of business do not reopen following a major disaster. On top of that the study shows that another 25% will fail within the first year. (July 2013)
• The United States Small Business Administration found that over 90% of companies fail within two years of being struck from a disaster.
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Business Impacts Consequence of Disruption
Operational and Financial Impact • Lost sales and income • Delayed sales and income • Increased expenses • Regulatory fines • Contractual penalties or loss of contractual
bonuses • Customer dissatisfaction of defection • Delayed of new business plans
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• Of small businesses do not have a formal Emergency Response Plan
• Of businesses that backup their
data do so because of prior experience of losing data
60% 30%
(Most US small businesses lack a disaster-recovery plan– Jeff Drew Aug. 2,2012 CGMA Magazine)
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So now lets talk about what we can do to save your businesses and
your community
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Tactics
• Know what disasters you business face • What is your risk, what threats do you face • Where do you find resources to help you plan
for disasters • Start planning! • Test or exercise your plan • Review and make necessary changes • Update annually
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What disasters does your business face
• History of disasters known • Work with local and or state Emergency
Management • Work with insurance agencies • National Weather Service • Newspapers, historical societies
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What is your risk?
• Are you in a floodplain? • Are you a target? • Is your business vulnerable? • Do you have a limited market? • Is dependent on utilities or specific services? • Do you work with hazardous materials?
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Resources
• ReadyBusiness.gov ( government) • FM Global (Insurance company) • Associations (BBB, OSHA, SBA, Online
Resources) • Private companies that provide services for
disaster planning $$$
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Planning
• Continuity plans (Critical Tasks) • Recovery Plans • Cyber disruption plans • Resumption plans • Active Shooter Plan • Environmental Plan
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Exercise
• Just don’t have a plan on the shelf? • Run tabletop exercise • Do you have fire drills • Should you have an active shooter drill? • As an EMA Director do you work with
businesses to test there plans? • Follow HSEEP
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Corrective Actions
• Don’t just find issues • Commit to fixing them • Assign someone • Set deadlines • Update your plan!
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Think Long Term Survival
Disaster impact on the organizations Clientele.
If the organization is in a declining industry They are less likely to survive
The extent of the financial resource lost by the organization
Availability of substitute goods or service
The Owner/Operators Ability to adapt to a new business environment
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