Continuity Planning Overview

Bonnie Canal Managing Partner

The Resiliency Institute

It’s Going to Happen• All communities will have some type of disaster.

General consensus is natural disasters are increasing in frequency and severity.

• How quickly can you move from response to recovery?

• The top 10 costliest U.S. natural disasters between 1980 and 2010 caused more than $501.1 billion in damage and up to 22,240 deaths. (National Weather Service and the Insurance Information Institute)

The $4 Billion Weather Disasters of November 2013:

1.Super Typhoon Haiyan ($5.8 billion)

2.November 17 tornado outbreak in the U.S. ($1.7 billion)

3.Flooding in Cambodia ($1 billion, the costliest disaster in Cambodian history)

4.Ongoing U.S. drought damages listed for the first time this year ($2.5 billion)

• These four disasters bring the world-wide tally of billion-dollar weather disasters in 2013 to 39.

• This is the second highest yearly total of billion-dollar weather disasters for the globe since accurate disaster records began in 2000.

Partners in Resiliency

• Other government:• Economic Development• Planning Commissions• Zoning• Safety & Permits

• Businesses• Chamber of Commerce• BNI

• Community Groups• Faith-based• Civic• Social

• Others?

Preparedness Saves Money

• Hazard mitigation (FEMA): $1 spent = $4 in future benefits.

• Hazard preparedness: $1 spent = $15 in future benefits.

• Capital will flow more easily to communities that are prepared!

Resilience Planning

Resilience Condition Savings

• If a community is prepared a disaster, there are stupendous opportunity for community and economic development.

• Where are the opportunities to leapfrog?

All Sectors are Impacted

• Social• Economic• Environmental

Focus on Resilience

• Recognize – government can’t do it all.

• Stress –citizens need to be involved, engaged and prepared (managed expectations).

• Focus – on community-level efforts to prepare, protect, respond, and recover.

• Benefit – if done properly can speed up recovery process.

• End Game – lessen the time between response and recovery.

• Resiliency Plan threaded through the others--must include all plans, master, strategic plan, land use plan, etc.

• The resiliency plan becomes strategic plan.

• Shortens time gap for recovery money and actual recovery.

Small Business: Backbone of Economy

29.2 Million Small Businesses in the US

85% of small businesses employ 10 or fewer

Create more than 50% of the non-farm GDP

Have fewer resources and capital to recover in the event of a Catastrophe

15-40% of Businesses fail following a Disaster

94% of Small Business Owners believe that a disaster could seriously disrupt their business within the next 2 years

Sources: SBA Website 092009 & Corporate Executive Board U.S. Small Business Market Report -Spring 2010 ,Red Cross 2011

Main Goal

The goal for Business Continuity Planning is –

to return to revenue-producing activity as quickly as possible

Continuity Planning 101

Definition of Business Continuity Planning:  

“Identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity.”

• Natural Disaster/Extreme Weather

• Power Outage• IT Failure• Telecommunication

Failure• Fire

• Flood• Utility Outage• Environmental Accident• Pandemic Influenza• Supply Chain

Disruption

We’re not Just Talking About a Catastrophe...

Key Planning Issues

• Emergency/Crisis Management Structure

• Human Factors• Communications• Security (physical and

logical)

• Reputation (PR)

• Technology• Supply Chain• Legal• Public/Private

Partnerships• Facilities• Stakeholders

Examples of Business Continuity Risks• Have you considered financial, legal, regulatory penalties that could be

imposed if you fail to provide a critical service which you are contracted to do?

• Consider how each of your critical services could continue during a prolonged power loss. ...Now think about a loss of power lasting for 24 hours.

• Which of your critical services would be jeopardized if your building was evacuated for a week with all access denied?

• What services would be affected if access were denied for a whole month?

• How many staff would be needed to continue to cover critical tasks and how would you accommodate them?

Examples of Business Continuity Risks• Do you have sufficient back-up for your data, both electronic and paper?

• Do you have an alternative building or premises in which to work effectively? Is this sufficient? Can staff work from home?

• Do you need access to any services not currently available at your temporary site?

• Do you use any special software or stationery? How long can you manage without that specific equipment and how long would it take to replenish stocks?

Business Continuity Planning- Organization Approach

1. Succession Plans

2. Accounting for Employees

3. Communications

4. Alternate Work Facilities

5. Essential Functions

•Who do we depend on?

•Who depends on us?

Primary Question:

What About the Supply Chain?

“To be completely Organizational Resilient,

ASK ALL VENDORS

in your Supply Chain IF THEY ARE RESILIENT.”

National standards have recognized the personal resilience gap and have evolved to address a more dynamic model of planning that addresses needs before, during and most importantly after an event.

In other words – they have evolved from readiness to resilience.

The Standard is Changing

Private Sector Responsibilities

Planning must consider the Maximum Allowable or Acceptable Down Time before the continued existence of a business is threatened,

and must identify resources required to maintain or resume business activities at an acceptable

level.

Organizational Resilience depends on the resilience of the people you rely on.

Think about it…

Risk Analysis

Personal Risk Analysis

Identify Dependencies

Recovery Strategies

Response Plans

Recovery Plans

Personal Continuity Plans

Annual Testing & Evaluations

Improved ContinuityPlanning

Model

Benefits of Preparation

Mitigation of loss of life or injury Business survival

Minimizing impact of business disruptions Improved supply chain resilience Satisfying customer business continuity requirements Improved internal processes

Improved employee relations

Improved external relationships Satisfy customer, shareholder, and stakeholder expectations Potential advantage over unprepared competition Lower operating expenses

Protection of brand and reputation

IBHS Tools For Small Businesses

Red Cross Tools For Small Businesses

www.ready.gov

US Small Business Administration

Chambers of Commerce Develop a Plan for the Chamber

Present Small Business Continuity Planning to the largest potential audience

Have the Chamber Endorse the process

“Sell” Business Continuity Training and as a Value-added service for the Chamber

Provide the Training and Assistance

Imbed Business Continuity into the Chamber Processes

Tulsa Area United Way

• Developed a Plan for the United Way operation

• Convinced them of the importance of planning for their “Member Agencies

• Presented Small Business Continuity Planning to the largest potential audience

• Provided the Training and Assistance

Building resilience requires a holistic approach that integrates risk reduction and balances social,

economic, and environmental goals.

End Game: lessen the gap between response and recovery

Questions?

Bonnie Canal Managing Partner

The Resiliency Institute504-874-5474

bonniecanal@theresiliencyinstitute.com