MITIGATION PREPAREDNESS RESPONSE RECOVERY FOUR PHASES OF EMERGENCY MANAGEMENT Pre-event Post event...

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5-1 MITIGATION MITIGATION PREPAREDNESS PREPAREDNESS RESPONSE RESPONSE RECOVERY RECOVERY FOUR PHASES OF EMERGENCY FOUR PHASES OF EMERGENCY MANAGEMENT MANAGEMENT Pre-event Pre-event Post event Post event Pre-event Pre-event Post event Post event

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MITIGATIONMITIGATIONPREPAREDNESSPREPAREDNESS

RESPONSERESPONSERECOVERYRECOVERY

FOUR PHASES OF EMERGENCY FOUR PHASES OF EMERGENCY MANAGEMENTMANAGEMENT

Pre-eventPre-event

Post eventPost event

Pre-eventPre-event

Post eventPost event

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Contingency Planning

Incident Response

Restoration

Business Recovery

Business Resumption

Risk Based Decision Making

Vulnerability/Risk

Assessment

Business AreaImpact Analysis

Crisis Management/CM Team

Crisis Communication

Training/Ex-ercises/ Drills

Incident Management

CRISISEVENT

Business CrisisManagement Functions

DisasterRecovery

Business AreaAnalysis

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Low Cost--High Reduction

IMPLEMENT

High Cost--Low Reduction

Reject unless required for regulatory compliance or for other reasons.

Low Cost--Low Reduction

CONSIDER - Look forSynergistic group of things

High Cost--High Reduction

CONSIDER - Conduct Cost Benefit Analysis

% R

isk

Red

ucti

on

Cost

RISK INTERVENTION COST VSEFFECTIVENESS

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Hazard Risk Management

Establish the Context

Objectives

Stakeholders

Criteria

Define key elements

Identify the Risks

Hazards analysis

Vulnerability analysis

Analyze the Risks

Review controls

Likelihoods

Consequences

Level of risk

Evaluate the Risks

Evaluate risks

Rank Risks

Treat the Risks

Identify options

Select the best responses

Develop risk treatment plan

Implement

Communicate and Consult

Monitor and Review

Emergency Management Australia, 2002. Emergency Risk Management

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Average financial impact of just one hour of data center down time:(Contingency Planning Research - www.drj.com/new2dr/stats 1996) • Telephone ticket sales - $69,900• Airline reservation centers - $89,500• Retail catalog sales centers - $90,000• Infomercial 800-number promotions - $199,500• Credit card sales authorizations - $2.6 million• Retail brokerage firm - $6.5 million

30% of companies hit by a major catastrophe never reopen, and another 29% do not reopen for two years. (Meta Group Research Feb 2002)

Companies deprived of key computer systems for only 10 days never recoup their losses, and half shutdown within 5 years. (Meta Group Research Feb 2002)

eBay estimates it lost $5 Million in sales and $4 Billion in stockvalue after a hacker shut down its site for 22 hours (Marsh Consulting)

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PPP 2000 Forum Topics

• Forum 1 - Natural Disaster Reduction Initiatives of the Insurance Sector

• Forum 2 - The Uncertainty of Managing Catastrophic Risks

• Forum 3 - Cities and Megacities at Risk from Natural Disaster

• Forum 4 - National Lessons from the California Earthquake Loss Reduction Plan

• Forum 5 - A Global Perspective on Reducing Losses from Natural Disasters

• Forum 6 - Disaster Recovery Business Alliances

• Forum 7 - Real-Time Monitoring and Warning for Natural Hazards

• Forum 8 - Reducing Losses from Floods

• Forum 9 - Protecting Our Critical Infrastructure

• Forum 10 - Motivating People to Do Something About Natural Hazards

• Forum 11 - Natural Disaster Reduction: Challenges for the Next Century

• Forum 12 - Public Health in Natural Disasters

• Forum 13 - Mobilizing DOD Hazard Reduction Forces

• Forum 14 - When Natural and Industrial Hazards Collide