Online Newsletter - November/December 2003

EMERGENCY RESPONSE PLANNING:

By Ronald T. Williams, USSS Ret.

When we go to work each day we have certain expectations. We assume that our office building will be standing, that the building will be habitable, that our offices will be as we left them, and that we will have power for our computers, lights, and other office machines. In summary, we assume that we will be able to conduct our business as we did the day before, and as we have since we began. Unfortunately, as many small, medium, and even large businesses have discovered, that is an assumption under which we as business men and women can no longer operate. The world is ever changing, and just as we must adapt to the markets in which our businesses compete, so must we adapt to the changing environment of the world and the present threats to our businesses.

Heretofore, businesses with Emergency Response Plans in place focused solely on natural disasters; earthquakes, hurricanes, floods, fire, etc. Very few, if any, considered intentional acts to be worthy of concern as a potential business interruption. That mindset changed for everyone a little more than two years ago. In the wake of the Terrorist Attacks on the World Trade Center on September 11, 2001, the scope of Emergency Response Planning has been expanded to include terrorism, as well as other malevolent acts, like Workplace Violence. Just as a natural disaster can all but stop your business, an intentional act can render your place of business a crime scene, which is completely controlled by law enforcement, and can result in a shutdown of days or weeks.

Whether through a natural disaster or intentional act, in the event you were prevented from reaching your office, or your building was severely damaged or destroyed, or some other force prevented you from operating, how would you go on servicing your customers, or making widgets, or doing whatever your business does? Is your business prepared to continue operating despite the loss of power, equipment, records; even its employees or physical location? As competitive as business is today, no one can afford to be sidelined for weeks or months without suffering severe setbacks, which can be unrecoverable.


WHAT IS IT?
For those unfamiliar with the concept, Emergency Response Planning (in years past Business Continuity Planning) amounts to a pro-active approach to the possible interruption of your business operations. The objective of emergency response or business continuity planning is to prevent short or long term interruptions from hindering normal essential operations causing an interruption, which if protracted could cripple your business, forcing you out of business. Some of the possible interruptions to your business operations include the following:

• Fire
• Earthquake
• Terrorism
• Workplace Violence/Malevolent Acts
• Hurricane
• Flood/Water Damage
• Power Failure/Outage
• Hazardous Materials Spills
• Civil Unrest
• Aviation/Other Accident


WHAT ARE THE BENEFITS?
For City, County and State Governments, Financial Institutions, as well as the Petrochemical Industry, Emergency Response Plans are required by law. For others, it is still optional, but there are many advantages aside from the obvious ones. Having an Emergency Response or Business Continuity Plan in place can do one or more of the following for your business: mitigate potential damage, reduce insurance premiums, increase operational efficiency, provide a competitive edge in your market, increase workforce stability, increase market stability if publicly traded, and improve general financial stability (up to 50% of businesses never recover after major disasters).


WHAT TO DO? - 4 ESSENTIAL STEPS
In an overly simplified outline, there are four essential steps in creating an Emergency Response or Business Continuity Plan. Step number one is to appoint an oversight committee or manager. The size of your business will determine whether you appoint a committee or manager. Step number two is for the committee or manager to identify and prioritize critical functions within your business. These will vary from business to business, but most will include the following: payroll/employee care, accounts payable & receivable, client/customer contact & service, and conducting business - whether that is to manufacture, consult, sell, manage, service or something else. Step number three is to plan business resumption or recovery strategies. These strategies will usually involve the dispersal of key functions and operations among two or more separate sites. These alternate sites can be what are known as "Hot Sites" or "Cold Sites." A Hot Site is a fully equipped alternate facility, ready to go with all the necessary equipment and supplies. A Cold Site is an unequipped alternate facility, requiring all necessary equipment for full operations. A "Warm Site" straddles the two, being a partially equipped alternate facility, requiring some additional equipment for full operations. Beyond these three primary options for alternate site operations, two or more businesses may unite in an effort to cut costs by establishing a "Shared Site." The fourth and final essential step in an Emergency Response Plan is to periodically test business resumption or recovery strategies, and update the plan as necessary, keeping pace with growth and changes in your business and/or its operations.


HOW TO BEGIN
This brief treatment of the subject of Emergency Response Planning simplifies an infinitely more complex subject, consequently the involvement of a qualified and experienced Emergency Management Consultant such as Talon is highly recommended to guide your business through the process. An Emergency Response Plan guided and approved by a qualified Emergency Management Consultant will lend your plan credibility and weight with shareholders, insurance carriers, as well as any regulatory agencies involved with your business. For more information about Emergency Response or Business Continuity Planning, please contact Talon at the number below, or at chall@talonexec.com.